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.