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Singapore Tax Rates

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A fee charged by a government on a product, income, or activity. Various types of taxes are levied by the government if tax is levied directly on personal or corporate income; the tax is called the direct tax. If tax is levied by the government on the price of a good or service, then the tax is called an indirect tax. The purpose of taxation is to finance the government expenditures on the product and services provided to the public without any price.
Different types of taxes are imposed by the government which are described as follows.

  • Income Tax is chargeable on individuals and companies income.
  • Property Tax is imposed on property owners which are based on the expected rental values of the properties.
  • Estate Duty has been abolished since February 15, 2008.
  • Motor Vehicle Taxes are taxes are imposed on persons having motor vehicles.
  • Customs & Excise Duties - Singapore is a free port and has relatively few excise and import duties. Excise duties are imposed on tobacco, petroleum products and liquors
  • Goods & Services Tax (GST) is a tax on consumption or tax non-investment spending in the form of sales tax.
  • Betting Taxes are duties on private lottery, betting & sweep-stake.
  • Stamp Duty is imposed on commercial and legal documents relating to stock & shares and immovable property.

 

PERSONAL INCOME TAX FOR SINGAPOREAN

These are the taxes levied on the personal income of an individual or the private companies directly by the government.

Taxable income

  • Rates of Personal income tax in Singapore are one of the lowest in the world.
  • Salary from the employment or the income from the business is subject to tax.
  • Sale of any product in Singapore or overseas the part of income received is subject to tax.

Capital Gains

The amount by which an asset's selling price is more then that of initial purchase price. Most of the investments that are sold at a profit, including mutual funds, bonds, options, collectibles, homes, and businesses, the IRS is owed money called capital gains tax.

  • No tax is levied on the capital gains in Singapore
  • Inheritance tax has been abolished since 2008 in Singapore.
  • The income earned by individuals while working overseas is not subject to taxation.

Tax levied by the Singapore government is different from person to person depending on the tax residency of the individual. Financial year of Singapore is ending on April 15 each year that is the last date of the year to fulfill the taxes.

Following is the rate of Taxes as per the income of the individual:

Chargeable Income ($)

Rate (%)

Gross Tax Payable ($)

On the first
On the next

20 000
10 000

0
3.50

0.00
350.00

On the first
On the next

30 000
10 000

5.50

350.00
550.00

On the first
On the next

40 000
40 000

8.50

900.00
3 400.00

On the first
On the next

80 000
80 000

14

4 300.00
11 200.00

On the first
On the next

160 000
160 000

17

15 500.00
27 200.00

On the first
Above

320 000
320 000

20

42 700.00

 

PROPERTY TAX LEVIED BY THE SINGAPORE GOVERNMENT

In Singapore the Local tax assessed on property owned, such as real estate or automobiles. It includes all types of properties like Govt. flats; factories; offices and other vacant land are subject to tax. If you or your business holds the property, you must pay property tax to the government.

The property tax rates in Singapore
The percentage of annual value of the property is the amount of property tax. It is calculated on the annual rental income.
The property owned by the owner has 4% rate of tax and the tax on all other properties is 10% in Singapore. 
Rebates, Relief’s or Refunds
Singapore government makes the taxes affordable by giving the rebates or relief’s to encourage land development and meet the business needs. For the last 1 month if the property is vacant then you can claim for the rebate of that month.
TAXATION FOR NON-RESIDENT PEOPLE IN SINGAPORE
With the normal rate of tax Singapore government provides various other relief’s to the non-residents also.


Category

YA 2005 (%)

Employees Remuneration 
Stay in Singapore  more than 60 days but less than 183 days Stay Less than  60 days

15.0
Exempt

Entertainer Income

15.0

Other Taxable Income

20.0

Capital Gains Tax

None

Royalty  Note: *10% effective 1 Jan 2005

15.0 *

Having Copyright

2.0

Directors' Remuneration

20.0

Interest

15.0

Management Fees

20.0

The Professional Fees

15.0

International Arbitrators Fees

0.0

But the professions, who make income from non-employment sources such as via directorship and consultationary fees, are heavely charged the following:

Year of assessment

Rate

1997 to 2000

26%

2001

25.5%

2002

24.5%

2003

22%

2004 onwards

20%

CORPOTATE TAX RATES

Singapore is the base of major international business activities and holding many big companies. Taxes levied by the Singapore government are on the net income of the company whether they are residents or non-residents of the country. It adopted the one-tire policy means taxes are charged on the chargeable income, on dividend no tax is imposed and the non-residents are subject to pay only 15% of the tax on interest, royalties or rental of equipment payments. There is no tax imposed in Singapore on capital gains. 
 

Tax rates for the financial years

1997-00

2001

2002

2003-04

2005-06

2007-09

2010

26%

25.5%

24.5%

22%

20%

18%

17%

Tax Incentives for Corporate

  • No tax is levied for the new Singapore companies on the first 100K annual profits for the first 3 years.
  • All companies to enjoy approx. 8.5% corporate tax rate for profits up to 300K
  • Above S$300,000O taxable income the overall company tax rate is a flat 18% which will be further reduced to 17% from 2010.

A Singapore company should meet the following requirements will exempting from the tax:

  • Company should be incorporated in Singapore.
  • For that year company should be tax resident.
  • Company has no more than 20 shareholders relating to that year.
  • At least 10% of the shareholders must be individuals.

 

Due date of tax filling

In the first financial year when the company commenced its business, the company should submitted the first form C by the date 31 October 2009. The Form C is a declaration form of its income.

Withholding tax

Singapore has implemented a withholding tax law to make the payments by the non-residents on income generated in Singapore. This tax does not apply to Singapore resident companies or individuals. One has to pay the tax on the Singapore-sourced income.

Types of payment upon tax imposed:

  • The payment of commission fees to overseas agents.
  • The payment of director’s fees to non-resident directors.
  • The payment of professional fees to offshore accountants.

TAX TREATIES

To avoid the double tax the Singapore government has tax treaties with various companies including Australia, Belgium, Canada, France, Germany, India, Indonesia, Israel, Italy, Japan, Malaysia, Mauritius, the Netherlands, New Zealand, People’s Republic of China, Philippines, Thailand, Switzerland and the United Kingdom.

SINGAPORE TAX FILLING DUE DATE

  • For the corporate the tax filling deadline is 31 Oct of each year from 2009.
  • For the Individual tax filling Deadline is 15 April 2009.

C) Estimated Chargeable Income (ECI)
A company needs to furnish Estimated Chargeable Income (ECI) within three months from the end of its financial year.
For example:


Financial year-end

Due date for filing ECI

Period covered in the accounts

Year of Assessment (YA)

Due date for filing ECI for that particular YA

31 Dec

31 Mar of the following year

1 Jan 2007 to 31 Dec 2007

2008

31 Mar 2008

31 Mar

30 Jun

1 Apr 2007 to 31 Mar 2008

2009

30 Jun2008

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