Singapore corporate tax rate is 17%, but the effective tax rate is in fact lower due to partial exemption available to all companies, and even more favourable exemptions available to new companies.
(PRWEB) September 25, 2011
After a watershed general election, Singapore Prime Minister Lee Hsien Loong has assured investors that Singapore’s economic direction will fundamentally remain the same. This is a move likely to encourage more business in the local sector, of which most economic activity will have to be subjected to local tax laws, says local company registration specialist Rivkin Singapore.
The Prime Minister made these statements at the Economic Development Board's 50th anniversary dinner, in response to investors whether his government would be changing its economic position for various political reasons.
Local businesses have historically benefited from the openness of the economy, filling the country’s coffers even with a comparatively low Singapore corporate tax rate. With a tax year from 1 January to 31 December, income tax in Singapore is assessed on a preceding year basis. Singaporean tax also adopts progressive personal tax rates, relative to an individual’s amount of income.
This translates into a low-risk environment, highly conducive for start-ups and entrepreneurs looking for a platform to launch their goods and services in the lucrative Asian markets.
Satish Bakhda, Rikvin’s Head of Operations, mentions that “Singapore income tax structure is one of the friendliest and most competitive in the world.” Despite this friendliness, applicants new to such a system regulated by the Inland Revenue Authority of Singapore (IRAS) might find the various administrative protocols foreign, and just a bit daunting to navigate.
Income tax in Singapore does not need to be a complex and frustrating matter, Bakhda says, with Rikvin Singapore offering a free downloadable guide to the IRAS Singapore income tax system that is both comprehensive and easy to understand.
He points out that the Singapore corporate tax rate is 17%, but the effective tax rate is in fact lower due to partial exemption available to all companies, and even more favourable exemptions available to new companies. With its extensive double tax treaty network and absence of capital gains coupled with tax exemptions, Singapore clearly still remains an attractive location for companies to set up operations.
Rikvin offers business solutions for both local and foreign investors and entrepreneurs. The firm’s specialties include company registration services, offshore company setup, incorporation and other related corporate services. Rikvin also provides professional services on accounting, taxation, immigration and application of Singapore work visa for foreign workers to work and relocate in Singapore. For other enquires on Singapore tax compliance, visit our website at http://www.rikvin.com/.
Rikvin PTE LTD
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
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