Overview Of The Taxation Policy In Singapore

Singapore has a plethora of attractive tax schemes and is also among such locations which offer the lowest possible rates of corporate tax

. This has made Singapore into a favorite place for business investments thereby pulling foreign investors from all around the world. Along with a friendly tax system Singapore also offers relatively simpler means of setting up a business and running the same. While personal tax rates and corporate tax rates are minimal there are also other attractions like tax relief measures, nonexistence of capital gains tax, double tax treaties and one tier tax system. Profits made by individuals or entities (corporations, partnerships, trustees and bodies of persons) by remaining engaged in any kind of trade, business or profession are subject to be taxed according to the applicable rules and rates. Such income must be derived or made from Singapore or derived from foreign based transactions. However, profits made from sale of capital goods are not subject to taxation.

A tax resident in Singapore is a resident in Singapore who may be physically present in Singapore for at least 183 days or more or if he is employed in Singapore for at least 183 days or more. A territorial system of taxation is followed in Singapore wherein income which is accrued or derived from Singapore or may be directed to Singapore from outside is only taxable. The types of income that are subjected to tax in Singapore are that of income drawn from trade, business, profession, vocation or employment done in Singapore. A company pays for the dividends accrued at the source itself for which no further taxation is levied on the recipient. Income from pensions, charges, annuities, rents, royalties, premiums and so on are also taxable.

Singapore has become popular due to the frequent slashes in corporate tax rates and the accompanying tax incentives it offers which are intended to make business investment an easy and profitable affair for investors from all over world. By adopting a single tier corporate tax system and abolishing double taxation for stakeholders Singapore has made foothold in becoming a hub of business investors. Goods and service tax of 7% is levied on supply of goods and services and also for importing goods into Singapore. However, relief from goods and service tax may be acquired on imported goods which are subject to certain conditions. There are zero rates for exports and international services.

by: Bryan Wong

POST COMMENT

Best Quality Car Hire In Singapore Overview Of Immigration To Singapore New English Programmes At Lsbf In Singapore What You Should Know About Immigration To Singapore Offshore Company Setup Simpler In Singapore Singapore Facts Foreign Companies Appreciate The Most Reasons Why Foreign Professionals Prefer Working In Singapore Singapore - A Culturally Rich City In The East Reasons Why Number Of Offshore Companies Are Rising In Singapore How Foreign Entrepreneurs Can Apply For Singapore Employment Pass What Singapore Offshore Company Owners Need To Know Singapore - The City That Marches Ahead Article Body All You Need To Know About Holiday To Singapore