Singapore Company Incorporation Portal Publishes a Guide on Singapore Corporate Tax

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This guide provides an overview of the Singapore corporate tax system, including effective tax rates when taking into account various tax exemptions and incentives for eligible companies.

Singapore Company Registration

Singapore-Incorporation.net

Various incentives are available to Singapore-based enterprises, including direct subsidies, loans and grants, equity participation from government organizations, reduced rates for qualifying income and enhanced deductions

Singapore is ideally positioned to be the gateway to Asia for regional companies and global enterprises. Due to tax exemption schemes, the effective tax rates in Singapore are one of the lowest worldwide. Further, unlike most tax-friendly jurisdictions, Singapore is widely recognized for its rule of law, transparency and world-class standards.

The headline corporate tax rate in Singapore stands at 17 percent for all the profits of locally incorporated or registered branches. In addition, qualifying companies enjoy full or partial tax exemptions under the Start-up Tax Exemption scheme. Under full exemption, 75% of up to the first S$10,000, and 50% of up to the next S$290,000 of a qualifying company’s chargeable income is exempt from corporate tax.

This guide further provides information on:

Corporate Tax Residency
In Singapore, a company is regarded as resident in Singapore for tax purposes if its management and control are exercised in Singapore. The Corporate Income tax rate is based on the net income companies obtain while exercising their business activity, normally during one business year. The benchmark used refers to the highest rate for Corporate Income.

Singapore Goods and Services Tax

Goods and Services Tax (“GST”) is a form of value-added tax that is imposed upon each supply of goods or services. Currently, a general rate of 7% applies in Singapore. The tax base is the total amount charged for the transaction. A company that does not have, or expect to have, taxable supplies of more than S$1 million can still register for GST, although on a voluntary basis.

“Various incentives are available to Singapore-based enterprises, including direct subsidies, loans and grants, equity participation from government organizations, reduced rates for qualifying income and enhanced deductions,” said Christine Lim, manager at Singapore-incorporation.net.

To read the complete guide, click here.

“Furthermore, Singapore offers the advantage of having a comprehensive network of Double Tax Agreements with more than 60 countries”, she concluded.

ABOUT SINGAPORE-INCORPORATION.NET
Singapore Incorporation Online provides corporate services including the registration of companies and businesses in Singapore, compliance and tax advisory services and immigration services including application for work visas and other business related visas. Singapore Incorporation Online is a full-service corporate service provider company providing a full range of corporate, compliance, tax and immigration support services.
Phone: +65 6305 2414
Fax: +65 6305 2415
Email: info(at)singapore-incorporation(dot)net
Website: http://www.singapore-incorporation.net

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Christine Lim
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