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CORPOTATE TAX RATES

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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.

The following conditions must be fulfill in order to qualify for a new company:

  • It is incorporated in Singapore;
  • It is a tax resident of Singapore for that Year of Assessment;
  • It has no more than 20 shareholders throughout the basis period relating to that Year of Assessment;
  • All its shareholders are individuals throughout the basis period relating to that Year of Assessment OR start-up companies with corporate shareholders can qualify for the existing Start-Up Tax Exemption Scheme, provided that there is at least one individual shareholder of minimum 10% shareholding

 
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.

 

Stamp Duty   - Property Transfer  

Value of property

Rate (%)

First S$180,000

1.0

Next S$180,000

2.0

Thereafter

3.0

 There is no tax in Singapore on Capital Gain.

Tax Incentives

In order to encourage the foreign capital into Singapore, there are tax incentives provided to various industries namely in the form of reduced corporate tax rates


Finance & Treasury Centre Co.

10%

Fund Manager

10%/exempt

Headquarters Co.

10%

International Commodity Trader

10%

Offshore Leasing

10%

Oil Trader

10%

Securities Company

10%/exempt

Trustee Company

10%

Arts & Antique Dealers

10%

Asian Currency Unit

10%/exempt

Insurance & Re-insurance Co.

10%/exempt

Members of Commodity Futures Exchange

10%

Pioneer/Incentive Co.

Exempt/Various

Financial Sector Incentive Co.

5%/10%

Cyber Trader

10%

Commodity Derivatives Trader (New)

5%

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