Singapore’s business tax system is extremely favorable to Singapore companies. Corporate tax rates are some of the lowest in the world. There are also many tax incentives and exemptions which may be claimed by Singapore companies. Therefore, companies of Singapore gain a great many benefit from the country’s business-friendly system of taxation.

Forming a Company To Lower Business Tax in Singapore

There are many valid reasons why a person who intends to start a company may do so in Singapore. The country has a robust economy which grows at an impressive rate. It has a strategic location which grants it access to various important markets. Singapore’s infrastructure is among the best in the world, while its workforce is held in high regard by many. The political environment of Singapore is generally stable and enforcement of rules and laws by the government of Singapore is strict yet fair. There are also simple and understandable regulations and requirements which allow foreign business owners to operate from an office with a Singapore address fairly easily.

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Singapore has also established itself as a suitable location for the setup of a company because of the many benefits provided by the government to those who start a company there. Singapore also has a high level of ease of doing business. Many investors from within Singapore and from abroad alike therefore consider it an easy decision to invest in Singaporean companies. These investors are able to take advantage of the benefits offered by Singapore’s governing bodies which ensure that they are able to register and incorporate their businesses easily if they have properly settled all matters related to documentation. However, arguably the primary reason why many business owners choose to start a business in Singapore is in order to take advantage of the low business tax rates. Business taxes in Singapore are among the lowest in the world. Therefore, by starting a business in Singapore, a business owner could potentially save a significant amount of money when compared to starting a business abroad.

On that note, perhaps you are interested in starting a company based in Singapore yourself. We at Paul Hype Page & Co are willing and able to be of assistance for the completion of this task. By contacting the members of our incorporation team, you will be able to receive the services which have helped many people establish a Singapore company. You will then be able to experience all the positives of Singapore company ownership.

Tax System of Singapore

Singapore is one of the countries with the simplest and most lenient tax systems. This is true because the country does not levy taxation on capital gains and dividends received. As a result, forming a new business in Singapore presents many opportunities for financial gain for business owners. Singapore uses a single-tier taxation system for the purposes of payment of all taxes imposed in the country including corporate tax. The standard rate of corporate tax is 17%. In Singapore, company profits and dividends are taxed. However, the dividends which are owned by shareholders are never doubly taxed. Due to the fact that such income is never affected by double taxation, dividends are therefore freely transferred to shareholders of a Singapore company. Singapore companies may also reduce the amount of tax to be paid through the use of the various schemes and grants which have been provided to them by the government.

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Further Information About Tax Reduction and Companies in Singapore

Singapore has signed Avoidance of Double Taxation Agreements (DTAs) with many countries all over the world. The signing of a DTA allows Singapore and the other country to have signed the agreement to prevents taxpaying companies from suffering the effects double taxation when the income involved is not bound by international borders. Singapore also offers Unilateral Tax Credits (UTCs) if the other country involved is not involved in a DTA with Singapore.

Any company which has been incorporated in Singapore has the rights to enjoy taxation benefits while operating in the country. Such companies may make use of the available schemes, grants, programs, and incentives which exist within the tax system of Singapore. Among those which may be claimed by eligible companies are the Wage Credit Scheme, the Tax Exemption Scheme for New Startups, the Deduction for Charitable Work, and the Double Tax Deduction for International Expansion. Companies of any business entity may claim the benefits of any of these tax advantages. These tax advantages prove that nearly any company which has been formed in Singapore will enjoy some level of tax exemption or advantage in addition to the low taxation rates.

It is vital to first determine if the company which is to apply for any of these tax schemes is a Singapore resident for the purposes of taxation. A Singaporean company is considered as a tax resident of Singapore if it is managed and controlled within the country. Therefore, it must conduct each board of directors’ meeting within Singaporean borders, have a company office location which is in Singapore, and conduct the majority of its business operations within Singapore. If such is not the case, the company will be treated as a non-resident company and will therefore be unable to apply for the tax exemptions which are available to companies which are tax residents of Singapore.

In spite of all the information which has been provided, it might nevertheless be the case that you might not have a complete understanding of the tax system of Singapore as it pertains to your company. For some, there is much about the Singapore tax system which may require further explanation. Should you happen to be such a person, we at Paul Hype Page & Co will provide you with the assistance and information which you might need. We will help you understand everything you need to know in order to make full use of the tax advantages for which your company is eligible. We will also work with you to assist you in reducing the amount of tax which you are required to pay.