How Taxation works 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 a 7 percent goods and services tax (GST), 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 percent, 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 is exercised in the city-state.
Benefits of engaging InCorp for all your Singapore Taxation needs
Domain expertise
Aided by a team of highly-qualified professionals, we help entrepreneurs gain a better understanding of 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 personal tax structure is progressive, with rates ranging from zero to 22 percent and the framework allows residents to tap various reliefs, thereby lowering their effective tax. We, at InCorp, 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 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.
InCorp provides the following services in Singapore:
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Corporate Tax Computation and Filing
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Personal Income Tax Filing
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Indirect Tax
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Withholding Tax
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Tax Planning and Structuring
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Tax Dispute Resolution
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Tax Audit and Investigation
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Transfer Pricing Advisory
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Tax on Funds and Fund Managers in Singapore
Please note that this is not an exhaustive list, and if you have any other taxation matters not listed above, please get in touch with our team.
Contact our Team:
Our tax professionals offer services that help startups, SMEs and MNCs to align their tax strategies to their business, through a wide variety of compliance and advisory services.