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Other Singapore Tax

Other Singapore Taxes

Other Singapore Taxes

  • Withholding Tax
  • Stamp Duties
  • Customs and Excise Taxes
  • Property Tax
  • Environmental Taxes
  • Tax on Insurance Premiums
  • Casino Tax
  • Road Tax

Withholding Tax

Tax must be withheld by the payer from the gross amount paid to a non-resident in respect of the following:

  • Interest, commissions, fees and other payments relating to loans
  • Royalties or other lump sum payments for the use of movable property
  • Know-how payments for the use of scientific, technical, industrial or commercial knowledge or information
  • Technical assistance or service fees
  • Management fees
  • Rent for the use of movable property
  • Directors’ remuneration
  • Specified distributions by unit trusts
  • Distributions made by a trustee of a real estate investment trust
  • Certain withdrawals made by Supplementary Retirement Scheme (SRS) members who are non-Singapore citizens
  • Payments to any non-resident public entertainer
  • Payments to non-resident individuals or firms of any income accruing in or derived from Singapore on or after 3 May 2002 from any profession or
  • Vocation exercised in Singapore, and
  • Payments of commission or other payments by any person to a non-Singapore resident junket promoter.

Stamp Duties

Under the Stamp Duties Act, stamp duty is chargeable on an instrument of transfer:

  • which is executed in Singapore, or
  • which is executed outside Singapore and is received in Singapore.

Examples of some common items that are chargeable with stamp duty are:

– the transfer or sale of immovable property – the sale of shares, and – transfer of lease or agreement for a lease of any immovable property (including any furniture, chattels, fittings or equipment).

Customs and Exercise Taxes

Singapore is a free port and has relatively few customs and excise taxes. Customs and excise taxes are imposed on all dutiable goods imported into or manufactured in Singapore. Dutiable goods primarily include:

– motor vehicles – tobacco – intoxicating liquor, and – petroleum products

Property Tax

Owners of immovable property located in Singapore are subject to annual property tax on the assessed value of the property. The general property tax rate is 10% per annum. The rate is 4% per annum for owner-occupied residential properties. For property tax payable from 1 January 2011, the following progressive property tax rates apply to owner-occupied residential properties:

– 0% for the first S$ 6,000 of assessed value – 4% for the next S$ 59,000 of assessed value – 6% for the balance of assessed value in excess of S$ 65,000.

Environmental Taxes

The Government of Singapore levies a water conservation tax to encourage water conservation.

-For domestic users:

a 30% tax applies on the domestic water tariff rate applicable to usage up to 40 cubic meters per month (117 cents per cubic meter), and a 45% tax applies on the domestic water tariff rate applicable to usage above 40 cubic meters per month (140 cents per cubic meter).

-For non-domestic users, a 30% tax applies on the non-domestic water tariff rate, which is 117 cents per cubic meter for all usage.

-For all shipping users, a 30% tax applies on the shipping water tariff rate, which is 192 cents per cubic meter for all usage.

Tax on Insurance Premiums

There is a tax on insurance premiums in Singapore. The rate of income tax for insurance companies, whether resident or non-resident, is the normal corporate tax rate of 17%.

Casino Tax

The casino tax, which came into operation on 5 February 2010, is a tax levied on the casinos’ gross gaming revenue. Gross gaming revenue(GGR) generated from premium players will be taxed at 5% while GGR from all other players will be taxed at 15%.

Road Tax

Road tax is levied annually in Singapore on owners of motor vehicles. Road tax is based on the size (engine capacity) of the vehicle. For example, for a 1600cc petrol-driven car, the road tax (up to 30 June 2009) is S$744 for 12 months.

What is the procedure of taxing a company(both foreign and local) in Singapore?

Answer:

A company, regardless of whether it is a local or a foreign company, will be taxed on its:

  • income accruing in or derived from Singapore; or
  • income received in Singapore from outside Singapore

Where to apply for some tax incentives?

Answer:

There are various types of tax incentives available to companies and these are provided in the Singapore Income Tax Act (ITA) and Economic Expansion Incentives Act (EEIA). Some of the tax incentives available are listed in the table below.

Governing legislation Types of incentives Where to apply
ITA/S13F Approved International Shipping Enterprise MPA
www.mpa.gov.sg
ITA/S13H Approved Venture Company EDB
www.edb.gov.sg
ITA/S14B Further deduction of expenses relating to Approved Trade Fairs, Trade Exhibitions, Trade Missions or to maintain overseas Trade Office IE Singapore
www.iesingapore.gov.sg
ITA/S14E Further deduction of expenses on Research and Development Project EDB
www.edb.gov.sg
ITA/S14O Tax deduction of special reserves for catastrophic risks of approved general insurers MAS
www.mas.gov.sg
ITA/S19C Writing down allowance for cost sharing agreement EDB
www.edb.gov.sg
ITA/S43(9) Concessionary rate of tax for income of life insurance companies apportioned to policyholders
ITA/S43C Concessionary rate of tax for approved offshore general insurance companies MAS
www.mas.gov.sg
ITA/S43C Concessionary rate of tax for approved offshore life insurance companies MAS
www.mas.gov.sg
ITA/S43C Concessionary rate of tax for approved offshore composite insurance companies MAS
www.mas.gov.sg
ITA/S43C Exemption of tax for approved marine hull and liability insurer (onshore and offshore business) MAS
www.mas.gov.sg
ITA/S43C Exemption of tax for approved offshore captive insurance companies MAS
www.mas.gov.sg
ITA/S43C Exemption of tax for approved insurer underwriting offshore qualifying specialised insurance risk MAS
www.mas.gov.sg
ITA/S43E Concessionary rate of tax for Approved Operational Headquarters (OHQs) EDB
www.edb.gov.sg
ITA/S43G Concessionary rate of tax for Approved Finance and Treasury Centre EDB
www.edb.gov.sg
ITA/S43Q Concessionary rate of tax for Financial Sector Incentive Companies MAS
www.mas.gov.sg
ITA/S43P Approved Global Trading Company IE Singapore
www.iesingapore.gov.sg
EEIA/ Part II Pioneer Industries EDB
www.edb.gov.sg
EEIA/ Part III Pioneer Service Companies EDB
www.edb.gov.sg
EEIA/Part IIIB Approved Shipping Logistics Enterprise MPA
www.mpa.gov.sg
EEIA/ Part IIIB Development & Expansion Incentive EDB
www.edb.gov.sg
EEIA/Part X Investment Allowances EDB
www.edb.gov.sg
EEIA/Part XIIIB Overseas Enterprise Incentive IE Singapore
www.iesingapore.gov.sg
EEIA/Part VIA Export Service Company EDB
www.edb.gov.sg

 

What is the meaning of Companies with non-December financial year end?

Answer:

Your company’s accounts are prepared up to the financial month for each year. Assuming your financial year end is 30th June, your accounts are prepared up to 30th June each year. The basis period for each YA is the preceding accounting year ended 30th June.

Example, your company’s basis period for YA 2014 is from 1st Jul 2012 to 30th Jun 2013.

What is the meaning of Companies with December financial year end?

Your company’s accounts are to be prepared up to 31 December each year. The basis period for each YA is the preceding calendar year ended 31 December.

Example, your company’s basis period for YA 2014 is from 1 Jan 2013 to 31 Dec 2013.

Need more professional help?

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What Are The Guidelines For Foreigners to Start a Business in Singapore4

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.
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To further aid you, we have provided here a resource area with industry specific information and other industry resources to help you successfully start and run your business.