Learn About Singapore Corporate Tax

By Author: Robert Sparks
Total Articles: 68
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The favorable corporate taxes in Singapore are one of the major reasons why both local and foreign entrepreneurs choose to start and establish a Singapore company.

The following tax benefits and exemptions are given to tax residents, companies whose control and management of the business is exercised in Singapore:
• Is eligible for tax exemption scheme available for new start-up companies.
• Can enjoy tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income.
• Is entitled to benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.
• Is only taxed on Singapore source income and foreign income that is remitted to Singapore.

In addition, the following are the common requirements to meet in order to qualify for tax exemptions:
• It is incorporated in Singapore;
• It is a tax resident of Singapore for that Year of Assessment;
• It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment;
• All its ...
... shareholders are individuals throughout the basis period relating to that Year of Assessment; or
• There is at least one individual shareholder with a minimum of 10% shareholding.

Finally, the following are the Singapore corporate tax incentives and exemptions for Singapore companies:
• Full tax exemption for newly incorporate companies
• Full tax exemption is granted on the first S$100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively.
• 8.5% for start up companies with chargeable income of S$100,001 to S$300,000
• 17% for start up companies with chargeable income of more than S$300,000
• 4.25% for existing companies with chargeable income of S$10,000
• 8.5% for existing companies with chargeable income of S$ 10,001 to S$300,000
• 17% for existing companies with chargeable income of more than S$300,000
• GST rates is at 7%
• For the first S$180,000 value of property at 1%
• For next S$180,000 values of property at 2% and 3% for succeeding amount.

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