Singapore operates a modified territorial basis of taxation.

Individuals and companies are taxed on income sourced in Singapore. Companies are taxed on income received in Singapore if it is sourced outside Singapore, except if certain prescribed conditions for exemption are met.

 

Basis of assessment

The tax year, known as the year of assessment (YA), runs from 1 January to 31 December. The period for which the profits are identified for assessment is called the basis year. The basis year is generally the year preceding the YA. Therefore, income earned during the 2022 basis year is assessed to tax in YA 2023.

Corporate income tax

Under the modified territorial basis of taxation, companies in Singapore are subject to tax on income accruing in or derived from Singapore and foreign income received or deemed received in Singapore from outside Singapore.

  • Rate
    Rate
    17%
  • ECI filing deadline
    ECI filing deadline
    Within 3 months after financial year end
  • Tax return/computation/ (un)audited accounts deadline
    Tax return/computation/ (un)audited accounts deadline
    30 November

Withholding tax

Withholding tax is generally a final tax where the income in question is not derived from the provision of services.

  • Filing and payment deadline
    Filing and payment deadline
    By 15th of the second month, following the date of payment to the non-resident
  • Range of tax rates
    Range of tax rates
    15% to 24%, depending on the nature of income (may be reduced under tax incentives or Tax Treaties)

Transfer pricing

Contemporaneous transfer pricing document (TPD) is required from 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.

 

 

Goods and Services Tax

Goods and Services Tax (GST) is the principal indirect tax in Singapore (akin to value-added tax in other countries).

  • GST rate
    GST rate
    8% from 1 January 2023
  • Filing and payment deadline
    Filing and payment deadline
    1 month after end of GST accounting period
  • Registration threshold
    Registration threshold
    SGD 1 million

Property tax

Property tax is a tax levied on property ownership. The annual tax payable is a percentage of the annual value of the property, which is the gross amount for which the property is expected to be let out in that year.

Stamp duty

Stamp duty is computed based on the consideration payable for the asset transferred or its market value, whichever is higher.

 

 

Personal income tax

Individuals (resident and non-resident) are only liable to income tax in respect of income accruing in or derived from Singapore.

Range of tax rate:

0% to 24% following a progressive tax rate stucture.

 

 

Singapore’s excellent strategic location and globalised economy make it an attractive business hub for organisations looking to build their presence in Southeast Asia and Asia-Pacific.

If you are planning on doing business in Singapore, knowledge of the investment environment and information on legal, accounting and taxation framework are essential to keep you on the right track.

This guide will provide you with insights into the key aspects of investing and undertaking business in Singapore. It makes reference to some of the most common issues companies might face when expanding into the city-state.

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