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A handy guide of Singapore Tax facts, to keep you up to date of the tax rates and conditions.
Contents

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Corporate income tax

Rate - 17%

Filing deadline of Estimated Chargeable income (ECI) - Within 3 months after the financial year end

Filing deadline of tax return, tax computation and unaudited / audited accounts - 30 November

Payment due date - Tax assessed has to be paid within 30 days from the date of the Notice of Assessment unless the Company has been allowed to pay the tax by instalment. The instalment payment plan is generally allowed only for the payment of tax assessed on an ECI.

Corporate income tax rebate

YA2019 - 20% of tax payable, capped at $10,000

YA2020 - 25% of tax payable, capped at $15,000

YA2021 - NIL

Partial tax exemption from Year of Assessment (YA) 2020

First $10,000 of chargeable income is 75% exempt - $7,500

Next $190,000 of chargeable income is 50% exempt - $95,000

Total - $102,500

Full tax exemption for new start-up companies (where any of the first 3 YAs falls in or after YA2020)

First $100,000 of chargeable income is 75% exempt - $75,000

Next $100,000 of chargeable income is 50% exempt - $50,000

Total - $125,000

 

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Withholding tax

Withholding tax is to be accounted to the Comptroller of Income Tax by the 15th of the second month following the date of payment to the non-resident.

The withholding tax rates may be reduced under tax incentives or Tax Treaties.

Rates by nature of income

Interest - 15%*

Dividends - NIL

Royalties - 10%*

Technical fees for services performed in Singapore - 17%

Management fee for services performed in Singapore - 17%

Rental or other payments for moveable property - 15%*

Remuneration paid to non-resident director - 22% (20% prior to 2016)

Professional fee (of non-resident individual or foreign (firm) - 15% on gross/ 22% on net (20% prior to 2016)

Public Entertainer - 15%/10% (10% applies for payment made during period from 22 February 2010 to 31 March 2022)

Charter fees (ships) - 0%

Charter fees (aircraft) - 0-2%

* These rates are final taxes for operations carried out outside Singapore. For operations carried on in Singapore, 17% will apply to non-resident non-individuals and 22% will apply to non-resident individuals.

 

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Transfer pricing

All related party transactions should be conducted at arm’s length, i.e. treating the related parties as if they were unrelated third parties.

Contemporaneous transfer pricing documentation ("TPD") is required by taxpayers if they meet any one of the conditions below:

  • Gross revenue for the financial year is greater than S$10 million; or
  • TPD was required to be prepared for the previous basis period.
De minimis thresholds

There are certain de minimis thresholds for specific transactions for preparing transfer pricing documentation as follows

Purchase of goods from all related parties - $15 million

Sale of goods to all related parties - $15 million

Loans owed to/by all related parties - $15 million

All other categories of related party transactions - $1 million (per category of transactions)

Examples include service income/ payment, royalty income/ payment, rental income/ payment.

 

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Goods and Services Tax (GST)

Standard rate - 7% (Standard rate to increase to 9% sometime between 2022 and 2025.)

Export of goods and international services - 0%

Sale and lease of residential properties and financial services are exempted from tax.

Registration threshold - $1 million

Filing and payment deadline - 1 month after end of GST accounting period. Generally quarterly but can be monthly. Where a company is on a GIRO plan (a direct debit plan) for GST payment, GIRO deductions are on the 15th day of the month after payment due date.

Imported, digital and remote services

Businesses not entitled to full GST recovery must account for GST on imported services.

Overseas suppliers and e-marketplace operators, making significant supplies of “digital services” to local customers are liable to register for GST in Singapore.

From 1 January 2023 overseas suppliers and e-marketplace operators, making significant supplies of “remote services” to local customers, will need to register for GST in Singapore.

 

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Stamp Duty

Deadline for Stamp Duty: To be stamped and paid within 14 days from date of execution if signed in Singapore or 30 days from receipt of document in Singapore if signed overseas

Buyer’s Stamp Duty for all Singapore real estate

First $180,000 - 1%

Next $180,000 - 2%

Next $640,000 - 3%

Amount exceeding $1,000,000 - 4%

Additional buyer’s Stamp Duty for residential properties (from 6 July 2018)

Foreigners buying any residential property - 20%

Entities buying any residential property - 25% (may be reduced) (plus additional 5% for Housing developers)

Singapore permanent residents buying a first residential property - 5%

Singapore permanent residents buying a second and subsequent residential property - 15%

Singapore citizens buying a second residential property - 12%

Singapore citizens buying a third and subsequent residential property - 15%

Seller’s Stamp Duty for residential properties for purchases made on or after 11 March 2017

Property disposed of within one year of purchase - 12%

Property disposed of within more than one year and up to two years of purchase - 8%

Property disposed of within more than two years and up to three years of purchase - 4%

Seller’s Stamp Duty for industrial properties for purchase made on or after 12 January 2013

Property disposed of within one year of purchase - 15%

Property disposed of within more than one year and up to two years of purchase - 10%

Property disposed of within more than two years and up to three years of purchase - 5%

Stamp Duty on transfer of shares  (other than residential property-holding entities)

Higher of purchase price or market value of the shares - 0.2%

 

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Central Provident Fund (CPF)

Maximum mandatory contributions for individuals below the age of 55 years and earning more than $750 per month with effect from 1 January 2016

Rates of CPF contributions

  • Employee - 20%
  • Employer - 17%
Maximum wages attracting CPF

Maximum monthly ordinary wages (OW) attracting CPF - $6,000

Maximum annual OW attracting CPF - $72,000

Maximum annual additional wages attracting CPF - $102,000 less OW subject to CPF

 

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Personal income tax

Filing deadline - 15 April (paper file) / 18 April (e-file) / 30 June (bulk extension by tax preparer).

Payment due date - Tax assessed has to be paid within 30 days from the date of the Notice of Assessment unless the taxpayer is allowed to pay by instalment through GIRO (a direct debit plan)

 

Rate (from YA2017)

 

  Chargeable income ($) Tax rate (%) Tax ($)
On the first 20,000 0 0
On the next 10,000 2 200
On the next 10,000 3.5 350
On the next 40,000 7 2,800
On the next 40,000 11.5 4,600
On the next 40,000 15 6,000
On the next 40,000 18 7,200
On the next 40,000 19 7,600
On the next 40,000 19.5 7,800
On the next 40,000 20 8,000
Above 320,000 22  

 

Personal income tax relief
Earned income Standard (max) Handicapped (max)
Below 55 years $1,000 $4,000
55 to 59 years $6,000 $10,000
60 years and above $8,000 $12,000
Spouse relief $2,000 $5,500
Qualifying child relief (per child) $4,000 $7,500

Personal income tax relief cap -

With effect from YA 2018, the total personal income tax relief claim is capped at $80,000.

Working mother’s child relief (WMCR)

First child - 15%

Second child - 20%

Third child and beyond - 25%

 

Maximum cumulative WMCR - 100%

Maximum relief per child inclusive of child/handicapped child relief - $50,000

 

Parent relief
 

Standard (max)

Handicapped (max)

Not living in the same household

$5,500

$10,000

Living in the same household

$9,000

$14,000

Grandparent caregiver relief

 

$3,000

Dependent handicapped sibling relief

 

$5,500

Life assurance relief

 

$5,000 (max)

CPF contributions and upskilling

Voluntary CPF contribution of self-employed - Capped at $37,740 or 37% of assessable trade income whichever is lower

CPF cash top up (self, spouse, sibling, parent, grandparent) - $7,000 (max)

CPF relief - $20,400 (max)

Course fees - $5,500 (max)

NSman

 

Non-key appointment holder

Key appointment holder

Active NSman

$3,000

$5,000

Non-active NSman

$1,500

$3,500

Wife/widow/parent of NSman

$750

$750

Foreign maid levy relief

 

$10,800 (max)

Supplementary retirement scheme (SRS)

Foreigners - $35,700 (max)

Singaporeans and Singapore permanent residents - $15,300 (max)