Taxation in Singapore

Here is a fact sheet on taxation in Singapore. With one of the lowest corporate tax rates in the world, Singapore makes for a great place to invest and set up your business. 

Income Tax

 

Income accruing in or derived from Singapore or received in Singapore from overseas is subject to tax. For corporate tax, remittance of foreign-sourced dividends, foreign-sourced branch profits and foreign-sourced service income into Singapore are exempt from tax if prescribed conditions are met. For individual tax, remittance of all foreign-source income are exempt from tax.

 

Goods and Services Tax (GST)

 

GST is a broad-based consumption tax levied on the import of goods, as well as nearly all supplies of goods and services in Singapore. The only exemptions are for the sales and leases of residential properties and the provision of most financial services. Export of goods and international services are zero-rated.

 

Tax Rates at a Glance

 

  • Corporate - 17%
  • Capital Gains tax rate - Exempt
  • Withholding tax
    • Dividends - Exempt
    • Interest - 15%
    • Royalties from Patents, Know-How, etc - 10%
    • Branch remittance - Exempt
  • Personal Income tax rate - 0 to 20%
  • Goods and Services tax rate - 7%

 

Regional Comparison

 

Country Corporate Tax Rate
Hong Kong 16.5%
Singapore 17%
Taiwan 17%
South Korea 22%
Thailand 23%
Malaysia 25%
Vietnam 25%
China 25%
Indonesia 25%
Philippines 30%

 

 

Tax for New Startup Companies

 

Newly incorporated company that meets the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income for each of its first 3 years of assessment.

 

A further 50% exemption is given on the next $200,000 of the normal chargeable income for each of the first three consecutive YAs.

First $100,000 @ 100%    =         $100,000
Next $200,000 @ 50%    =         $100,000
Total $300,000                           $200,000

 

Years of Assessment (YA) 2013, 2014 and 2015, companies will also receive a 30% Corporate Income Tax (CIT) Rebate that is subject to a cap of $30,000 per YA.

 

Productivity and Innovation Credit (PIC) Scheme gives 400% tax deductions/ allowances and/or 60% cash pay outs for investment in innovation and productivity improvements

 

 

Support from Your Business Services Team at BritCham SG

 

Following the signing of the “Overseas Business Network Initiative” between UKTI & BCCS, we are pleased to offer a range of business services to UK based SMEs beginning October 2013. These services will assist UK companies to trade and do business in Singapore.

The following services are available: 

 

 

Each of the above Business Services is currently available at an introductory price of GBP£42 per hour.  For more information or a proposal of work please contact our Business Services Manager Carole McCarthy via email carole@britcham.org.sg. Carole will assess your aims and objectives and provide you with a tailored programme of support.   

 

 

References
 

 
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