How Does Taxation Work in Singapore?
Singapore adopts a modified territorial tax system. This means that tax is imposed on all income accrued in or derived from Singapore, and on all foreign-sourced income remitted to the country. Though notably, there are exemptions for qualifying foreign-sourced income including dividends, branch profits, and service income. Other notable tax considerations are – no capital gains and dividends tax, lower withholding taxes, advance tax rulings, and no significant restrictions on foreign exchange transactions and capital movements in Singapore. Singapore also has an 9% Goods and Services Tax (GST) with effect from 1st January 2024, levied at two levels – upon the import of goods, and supply of goods and services in Singapore. The headline corporate income tax rate in Singapore is currently 17%, but the effective tax rate is lower because of various exemptions. As a general rule, a Singapore company is taxed on the income earned in the preceding financial year and is considered a tax resident if its control and management are exercised in the city-state.Benefits of Engaging InCorp for Your Singapore Taxation Needs
Domain Expertise
Aided by a team of highly-qualified professionals, we help entrepreneurs gain a better understanding of their Singapore company set-up, and how to navigate the city-state’s complex tax regime.Pay the ‘Effective Tax’, Benefiting From Various Schemes
Even though the headline corporate tax rate is the third lowest in the world (17%), the effective rate, taking into account the various schemes, is even lower. Additionally, Singapore’s personal tax structure is progressive, with rates ranging from 0 to 24%. The framework allows residents to tap various reliefs, thereby lowering their effective tax. At InCorp, we can help you achieve that ‘effective rate’ of taxation, by guiding you on how to take advantage of all the schemes and reliefs.Avoid Penalties and Perform Proper Filing
With a team of experienced and qualified Chartered Accountants, we are a market leader in all accounting and tax statutory matters relating to Singapore jurisdiction. This will help to avoid penalties by fulfilling all its compliance requirements. We help you adhere to proper Singapore regulator’s taxonomy.No Surprises
With us, you will know your outsourced corporate services cost well in advance.Cross-Border Taxation Expertise
Singapore has signed more than 20 free trade agreements (FTAs), and over 80 comprehensive avoidance of double tax agreements (DTAs). These are aimed at minimising tax barriers to the flows of trade, investment, technical know-how and expertise. With our presence across the region, we can advise you on various aspects of FTAs and DTAs, to help manage your cross-border taxation matters. Related Read: 6 Ways to Lower Your Corporate Taxes in Singapore LegallyInCorp Provides the Following Services in Singapore:
- Corporate Tax Computation and Filing
- Tax on Funds and Fund Managers in Singapore
- Personal Income Tax Filing
- Indirect Tax
- Withholding Tax
- Tax Planning and Structuring
- Tax Dispute Resolution
- Tax Audit and Investigation
- Transfer Pricing Advisory
FAQs
How much are corporate taxes in Singapore?
- Singapore’s standard corporate tax rate is 17%, and applies to both local and foreign companies conducting business in Singapore.
When should corporate taxes be paid?
- Companies subject to Singapore Corporate tax must submit their ECI form annually within 3 months of the company’s financial year-end.
Who should pay corporate taxes in Singapore?
- Both resident and non-resident companies that conduct business in Singapore must pay taxes on their Singapore-sourced income, and on foreign-sourced income when it is remitted to Singapore.
