Singapore adopts a territorial and progressive 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 few 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, 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 17 percent, but the effective tax rate is lower because of various government schemes. 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.
We, at InCorp Global, deal with all these aspects of Singapore taxation. As regards to corporate tax, our services include corporate tax computation and filing, preparation of tax forms for corporate submission, preparation of Director’s Report, and preparation of forms C-S/ C for submission. As regards to personal tax, our services include registration for new tax payers, preparation and filing of income tax returns, preparation of Form IR8A/IR21 for employees, personal tax reliefs, double taxation and exemption, tax refund, and taxation of bonuses, among others.
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. When you engage our services, a Singapore taxation expert will assess and advice on how to optimise your tax dues. Then, your tax returns will be prepared, which would be sent for your final approval. Once the review and audit is done, and we get your final go ahead, we file your company’s tax returns with IRAS; refunds, if any, are also claimed.
Benefits of engaging us 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 Singapore Tax Accounting Services, 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 over 21 free trade agreements (FTAs), and 76 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.