subject: Singapore Corporate Tax Rates [print this page] Singapore corporate tax rates are another favorable factor considered by entrepreneurs in choosing Singapore over the other countries. The just and competitive tax rates make Singapore an ideal location for company incorporation. Considering all these reasons, Singapore has confidently taken the lead as a recognized business nation worldwide.
For new start up companies, they are given zero tax for the first S$100,000, 8.5% for S$100,001 to S$300,000 and 17% to companies earning above S$300,000.
However the following qualifying conditions for new startup companies tax exemptions should be met:
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.
For existing companies, companies that earned S$10,000 are given 4.25% tax break, 8.5% for S$10,001 to S$300,000 and 17% to companies earning above S$300,000.
For Stamp duty tax, 1% is required for properties amounting to first S$180,000, 2% to next S$180,000 and 3% thereafter. For Goods and Services tax, the government of Singapore requires 7%.
To encourage foreign capital inflow into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates: Finance and Treasury Centre Co 10%, Fund Manager 10%/exempt, Offshore Leasing 10%, Oil Trader 10%, Securities company 10%, Trustee company 10%, Arts and Antique Dealer 10%, Asian Currency Unit 10%, Members of Commodity Futures Exchange 10%, Insurance company 10%, Cyber Trade 10% and Commodity Derivatives Trade 5%.
If you need further information on Singapore corporate tax rates, you can immediately proceed by contacting Rikvin, Singapores leading corporate solutions specialist.
