Foreign business owners in Singapore will need to know about their tax obligations to ensure that they do not violate any tax laws of the country. There are several taxpayers who might be unsure whether they are to pay taxes to the tax authorities of Singapore or their home country.

Is the Foreign Business Owners In Singapore Need to Pay Taxes to Singaporean or Foreign Tax Authorities

The tax requirements which are imposed on foreign business owners in Singapore must be understood by such owners so that they do not violate any of the tax laws of Singapore. For this reason, foreign business owners who have set up business operations in Singapore must be aware of their tax obligations and which tax authorities are those to which they are required to pay taxes.

 

Corporate Tax Rates in Singapore

In general, all businesses and business owners based in Singapore are to pay corporate tax. Business owners in Singapore benefit from some of the lowest corporate tax rates in the world. The standard corporate tax rate in Singapore is just 17%. Singapore also does not impose any capital gains tax on its taxpayers. Any income which has been received from fixed deposits in Singapore is also not subject to any taxation.

 

Tax Obligations in Singapore

The tax obligations of anyone in Singapore depend on the tax residency status of the person in question. A person is to be regarded as a tax resident of Singapore if the person has lived or worked in Singapore for at least 183 days of a particular calendar year, or continuously for three consecutive years. If the taxpayer has worked in Singapore for a period which covers two separate calendar years and the total period of the taxpayer’s stay in the country is at least 183 days, the taxpayer is also to be regarded as a tax resident of Singapore. Foreign employees and business owners are also subject to these same rules on tax resident status with the exceptions of foreigners who are public entertainers as well as certain company directors and professionals.

Anyone who has received a work pass which is valid for a minimum of one year will also be regarded as a tax resident of Singapore. However, the tax residency status of such a person is reviewed at the point of tax clearance. Such a review is made based on the tax residency rules of Singapore. Any foreign taxpayer who has completed a stay in Singapore of less than 183 days is to be regarded as a non-resident.

Although much of the information regarding one’s tax obligations in Singapore has just been explained, you might nevertheless struggle with fully understanding your tax requirements. Should such be the case, we at Paul Hype Page & Co are always ready to provide our assistance to you. Our tax team has much knowledge and understanding about the tax system of Singapore. Therefore, it will not be difficult for us to provide you with all of the services which you might need in order to fulfill all of your tax obligations.

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Double Tax Treaties and Foreigners’ Tax Obligations

Double tax treaties play an important role in determining the tax obligations of all foreigners who live in Singapore. Such is the case because double tax treaties specify the regulations which regard tax residents who would otherwise have had to pay taxes to the tax authorities of more than one country. If a taxpayer is from a country with which Singapore is part of a double tax treaty, all that is necessary for the taxpayer to only have to pay one set of taxes is to produce and submit a certificate of residence of either Singapore or the other country involved to the relevant tax authorities. Once the taxpayer has done so, the taxpayer will not be forced to pay taxes to one of the country’s tax authorities, whether it be Singapore or the other country involved. For this reason, double tax treaties have assisted many a Singapore taxpayer with reducing their overall tax burden.

Double tax treaties are an important part of international tax planning, an area of taxation with which many have experienced troubles. Fortunately for you, if you have also been finding it difficult to manage your international tax matters, we at Paul Hype Page & Co can be of assistance. This is because we provide services related to international tax planning. We will ensure that you do not have to pay excessive amounts of tax to any country’s tax authorities, and we always do so in a legal and honest manner.