Paying Taxes in Singapore

A presentation brought to you by OpenCompanySingapore.com

1

Taxation System in Singapore

• The Inland Revenue Authority in Singapore (IRAS) is the institution collecting the taxes imposed to Singapore tax residents. 

• Taxation in Singapore applies to the following categories:

individuals;

companies;

trustees.

2

Types of Taxes in Singapore

• Singapore’s taxation system is made of several types of taxes:

the income tax levied on individuals and companies;

the Singapore property tax,

the motor vehicle tax,

the Goods and Services Tax (GST), equivalent to the value added tax in Europe.

3

Taxation of Individuals in Singapore >>

• When it comes to individuals, the tax paid on the personal income depends on whether the person is a Singapore tax resident or not and on the income they make.

• This is also the main reason Singapore is a very attractive country for foreign businessmen and individuals coming to work here.

4

>> Taxation of Individuals in Singapore

• The following categories of individuals are considered Singapore tax residents:

Singapore citizens,

holders of Singapore permanent residence permits,

foreign citizens working or living in Singapore for at least 183 days in the previous year.

5

Taxation of Companies in Singapore >>

• Singapore is an example when it comes to taxes levied on corporations because the city-state continues to reduce the taxation of companies and keeps introducing incentives in order to attract foreign investors. 

• Singapore applies a flat tax rate to corporations that is considered one of the world’s lowest corporate taxes.

6

>> Taxation of Companies in Singapore

• The 17% rate is the city’s headline tax rate, but thanks to all double taxation treaties Singapore has and other exemptions also, the effective corporate tax rate is lower.

• All companies in Singapore may apply for tax exemptions that reduce the corporate tax to approximately 8.5% for taxable income.

7

Goods and Services Tax in Singapore

• The Singapore goods and services tax (GST) is the equivalent of the European value added tax and it is an indirect tax. 

• The  GST standard rate was established at 7%.

• A 0% rate also applies to the export of goods and international services.

• Our Singapore experts in company registration can help you register for GST.

8

Assistance in Taxation Matters in Singapore

• Our accountants in Singapore will provide specialized bookkeeping services for foreign investors that want to set up their first business or for those opening branch offices or subsidiaries.

• Together with the usual services, our accounting staff in Singapore will also offer audit services and tax minimization solutions when requested.

9

Thank you for your attention!

For more information, please contact us at:

+ 852 8191 3385

office@lawyers-singapore.com

www.opencompanysingapore.com10