When it comes to corporate tax, Singapore’s laws are very progressive. There is a deliberate effort to ensure that the tax rates that are in place are favorable to investors and that they place Singapore in an advantageous position compared to its competitors. The low tax rates and a convenient business environment are two things that continue to endear Singapore to investors.

Tax Brackets

The headline tax rates in Singapore today is 17% on corporate earnings. In many cases, the effective tax rate is much lower than this. This is because the tax brackets in Singapore are not as straightforward as they may seem at first glance. There are many exemptions and tax deductions that are dependent on many other things including the duration for which the company has been in existence, the company’s tax residence, and the number of shareholders.

For example, from YA2020 onwards, you will get 75% exemption on the first $100,000 taxable income, and a further 50% exemption for the next $1000,000 taxable income.

Audit Exemptions

No company, regardless of its size, is exempted from filing tax returns. However, private companies that have less than $5 million in annual income, or those which have not had any accounting transactions during the year are exempted from submitting audited accounts, although they’ll be require to submit unaudited accounts for the year. Like in any other country, corporate and business related taxes are a complex issue in Singapore. Apart from the constant changes that are being made to the tax laws, Singapore continuously enters herself into treaties that may affect the amount of money you may have to pay in form of taxes.  For this reason, if you would like to get the best results you will need to employ a professional tax consultant to help you out on this.

Foreigner Seeking Relocation to Singapore

For further information to set up Singapore business , you can refer to the following useful links: 1) Type of Singapore Business Incorporation 2) Singapore Company Tax 3) Singapore Business Guide for licenses, yearly Singapore company compliance and relevant business information Further, you also need to consider of moving your assets to Singapore to demonstrate your commitment however  it can be complicated as its involve cross border tax issue. You might be unaware of your tax residence status, how to avoid double taxation and yearly tax reporting requirements. Let our experienced  tax consultant assists you in your international tax planning to lower down your overall tax position.

For further information on relocation tax planning, please refer to the following useful links: 1) Singapore Personal Tax 2) Singapore Double  Tax Treaty assists you business relocation to Singapore

Contact Paul and Hype Page Co. for a FREE consultation on Singapore tax planning. We provide the following services:

  1. Instant online company registration in Singapore
  2. International tax planning and advice
  3. Professional company secretary service at affordable price

Paul Hype Page & Co. is an ACRA-certified business adviser. Our team of seasoned professional can help you set up a company in Singapore very quickly and easily following all legal entities, and offer you sound advice on how to make it successful too. In addition to business registration, we’ll also guide you how to:

  1. Write a business plan – Learn how to write a compelling business plan by accessing our sample business plans, or other helpful market research information
  2. Perform market research – Understand your business market, learn how it can enhance your business growth, and how to properly conduct a market research for your business
  3. Legal issues for small business – If you are thinking about registration of company in Singapore, then you really need a lawyer. In addition, you will learn why legal counseling is very important part of any business.
  4. Manage your finances – We’ll offer you FREE resources and information to help you fully understand all financial concepts and teach you how to perform basic accounting tasks like budgeting, bookkeeping, financial analysis, among others.

A Look At The Corporation Tax In Singapore FAQs

Is corporate tax the same as an income tax?2020-12-23T11:27:53+08:00

No, corporate tax and income tax are different.  Corporation tax is a tax levied on profits by companies. On the other hand, income tax is a tax imposed on personal income. 

Why is Singapore’s tax so low?2020-12-23T11:27:31+08:00

Singapore’s tax is relatively low as compared to other countries because competitiveness is a decisive consideration undergirding its tax policy. 

What is the corporate tax rate in Singapore?2020-12-23T11:27:15+08:00

The corporate tax rate in Singapore is 17%. 

Which Southeast Asia country imposes the lowest corporate income tax?2020-12-23T11:26:38+08:00

Singapore imposes the lowest corporate income tax among ASEAN member states.  

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