More
Corporate Taxes
Corporate tax rate 2010 17%
Effective tax rate (applicable to companies more than 3 years old) 4.25% on taxable income of up to S$10,000 per year.
8.5% on taxable income of up to S$290,000 per year.
17% on taxable income of S$300,000 and above per year.
Capital Gains tax None
Tax residence A Singapore company is considered a tax resident, as in accordance with Singapore Income Tax Act, if the ‘control and management of its business is exercised’ in Singapore. A tax resident company is eligible for tax incentives, tax exemptions and tax treaties available through the government.
Non-resident A non-resident company is one whose control and management of the company is held outside of Singapore, and invariably the board meetings are also held outside of Singapore. A branch office is a non-resident company since the parent company located overseas is responsible for the control and management of the operation.
Taxable income All income or profits from business, profession, or vocation accrued in Singapore are subject to Singapore tax. It also includes foreign-sourced income received in Singapore if the income does not qualify for exemptions.
Royalty tax Royalty income earned in Singapore is taxable in the form of withholding tax.
Payroll tax None
Transfer tax None
Capital duty None
Stamp duty All sales, purchases or transfers of property and shares; lease of property; and commencement of a mortgage are liable to stamp duty. The rates differ and are as follows:

  1. 1 % for the first S$180,000 for the sale, purchase or transfer of property,
    2% for the next S$180,000 and 3% on the remaining amount.
  2. 0.2% of the consideration or net asset value, whichever is higher, on transfer of shares.
  3. S$1 for a 1 year lease on the lease of a property, whose annual rent exceeds S$1000, S$2 for a 1-3 year lease; and S$4 for a 4+ year lease for every S$ 250 of the average annual rent.
  4. Stamp duty on the mortgage of immovable property, stocks and/or shares is S$4 for every S$1000 or part thereof. Stamp duty must be paid within 14 days from the date of execution if the document is signed in Singapore or 30 days of its receipt in Singapore if the document is signed overseas.
Property tax Property tax rate is 10% of the annual value of the property for all commercial properties.
Annual value is the estimated annual rent that the property would command if it were rented.
Property tax payment deadline is on January 31 of each year.
Central Provident Fund (CPF) Employers who hire employees that are Singapore citizens and permanent residents must make monthly Central Provident Fund contributions. The stipulated CPF contribution rates for employers and employees are 14.5% and 20% respectively. Lower rates may apply but subject to certain conditions.
Corporate Tax Incentives and Deductions
Tax exemptions for new companies

0% tax rate on the first S$100,000 taxable income and only 8.5% on the next S$200,000 for the first three tax filing years.

To be eligible for this particular tax incentive, the company has to fulfill the two conditions outlined below:

  1. It is a newly incorporated Singapore company, and
  2. The company has a maximum of 20 shareholders of which at least one is an individual shareholder with at least 10% of the shares.
Productivity and Innovation Credit (PIC)

Productivity and Innovation Credit is a broad-based tax concession scheme introduced in 2010. It was designed based on ESC’s recommendation to chart a new economic roadmap for Singapore.

PIC offers tax deductions to businesses that are willing to invest to promote innovation and productivity. Under the scheme, businesses can claim a tax deduction for 250% of qualifying expenditure incurred, subject to a cap of S$300,000 for each of the following activities:

  1. Research and development done in Singapore
  2. Design work done in Singapore
  3. Acquisition of intellectual property (IP)
  4. Registration of IP Time of Supply Rules
  5. Automation through technology or software
  6. Training of employees
Additional tax incentives There are additional special purpose tax incentives and concessionary tax rates available for specific industries such as financial services, insurance and maritime.
Trade losses Losses are deductible and can be set off against income from other sources. The balance can be carried forward indefinitely, subject to certain conditions. Capital losses are not deductible.
Tax deductions and allowances Operating expenses incurred in the production of income are tax deductible.
Depreciation allowance Only qualifying capital expenditure is eligible for capital allowance claims as per the applicable schedules.
Corporate Income Tax Administration and Compliance
Year of Assessment (YA) Year of Assessment (YA) is the year in which corporate tax is assessed based on profits earned in the preceding year.
Financial Year End (FYE) The standard financial period is 12 months,; however, a new company can extend its financial period in the first year to 18 months. The financial year end date, which is the financial year end or FYE, is not fixed. Each company in Singapore determines its own FYE.
Corporate tax return submission due date November 30 of each year.
Company secretary A company secretary must be appointed within six months of the incorporation of company.
Annual General Meeting (AGM) Annual General Meeting (AGM) is to be held within 18 months of the incorporation of company.
Subsequent AGMs will be held once every calendar year but not more than 15 months apart.
Filing requirements with ACRA All registered companies in Singapore are required to submit an Annual Return with ACRA, which consists of the Directors’ Report and its financial accounts reports.
Directors’ Report The Directors’ Report is a compilation of un-audited financial statements (balance sheet and income statements); supporting notes and disclosure of accounting policies applied by the company; disclosure of company’s operation; and shareholders and directors’ interests. The report is prepared in accordance with the Financial Reporting Standards (FRS)
of Singapore.
Filing requirements with IRAS Each company has to file a complete set of returns including Form C, tax computation and supporting schedules, audited or un-audited accounts and financial statements to IRAS.
Audit requirements Exempt private companies, which are companies with no corporate shareholders and have less than 20 individual shareholders, with annual revenue of less than S$5 million, and dormant companies are exempt from audit requirement. These companies are permitted to filing un-audited accounts.
Corporate Withholding Taxes
Withholding tax Withholding tax is a form of levy placed on payments made to non-resident entities, individuals or companies, whereby the services and income are provided in Singapore.
Payment subject to withholding Interest, royalties, rent from moveable properties, management fees, director’s fees and professional service fees
Dividends No withholding tax on dividends
Interest All fees paid to a non-resident company resulted from loans or commissions for services rendered in Singapore are subject to a 15% withholding tax.
Royalties Withholding tax on royalties paid to non-resident company is 10%.
Copyright royalties 17% withholding tax for copyright royalties pertaining to literary, musical, or artistic work or approved invention/innovation.
Rent Non-resident company that leases movable property is subject to 15% withholding tax on the rent payment.
Management fees & services Professional services which include management services provided by non-resident companies or individuals are subject to 17% withholding tax on the professional service fees.
Withholding for non-resident professionals General withholding tax for non-resident professionals is 15% except the following:

  1. Payments to non-resident company directors are subject 20% withholding tax.
  2. Copyright payments are subject to 10& withholding tax.
Personal Taxes
Personal tax rate Personal income of a Singapore tax resident is taxed at a progressive rate. It starts at 0% and goes up to a maximum of 20% for income at S$320,000 and above.
Tax residence Singapore citizens, permanent residents and foreign workers who reside permanently in Singapore or have work for 183 days or more in the tax year are considered tax residents.
Taxable income

All incomes earned for services rendered in Singapore are taxable. Incomes earned overseas are not taxable.

Incomes accrued overseas are generally not taxed in Singapore unless it is:

  1. Received through a partnership in Singapore,
  2. Incidental to Singapore employment,
  3. Income paid to individual who have been sent by the Singapore government to work overseas.
Tax deductions Tax residents are eligible to claim for tax deductions on personal relief, donations to charities, employment related expenses, and rental expenses.
Capital gains tax None
Wealth or estate tax None
Dividend tax None
Taxation on employment benefits Employment benefits such as housing & education allowances, bonuses and benefits-in-kind are taxable.
Property tax

Property tax for 2010 remains at a flat rate of 4% of Annual Value (AV).

In 2011, A progressive property tax structure for owner-occupied residential properties will go into effect:

  • 0% for the first $6000 of AV;
  • 4% for the next $59,000 of AV;
  • 6% for the balance of AV in excess of $65,000.

Non-owner-occupied residential properties and other properties will continue to be subject to 10% property tax.
Personal Taxes for Non-residents
Non-resident

A non-resident is a foreigner who have stayed or worked in Singapore for less than 183 days in the tax year. A non-resident is taxed at a flat rate of 15% or the at resident tax rates, whichever results in higher tax amount.

A non-resident who is employed for 60 days or less in a tax year is exempt from taxes.

All non-residents are not eligible to claim personal relief.
Personal Income Tax Administration and Compliance
Tax year Income tax is assessed based on income earned in the preceding year,
which is from January 1 to December 31.
Tax filing due date April 15 of each year.
Filing requirements It is mandatory for all individuals who earn above S$20,000 to file for annual tax returns.
Notification of assessment Once the annual tax return is submitted, IRAS will issue a notification of assessment on the amount of tax payable. The payment must be made with 30 days from the date of issue of the notification.
Goods and Services Tax
GST rate 7%
GST exemptions Financial services, export of goods, sale and lease of residential land are exempt from GST.
GST registration

Companies with annual revenue that exceeds or is expected to exceed S$1 million must register for GST.

A company that has less than S$1 million in its annual revenue can opt for voluntary GST registration.
GST filing GST returns are filed quarterly, and payments are to be made within 30 days after the end of accounting period.
Related Topics
Singapore Corporate Tax
Singapore Personal Income Tax
Singapore Non-resident Tax
Singapore Goods and Services Tax (GST)
Singapore Withholding Tax
Singapore Property Tax