Singapore Income Tax System | Rikvin Consulting
Singapore is considered as the best example of countries that continues to promote and apply reduction of corporate income tax rates and tax incentives. This action aims toward attracting, establishing and maintaining global investments. Singapore has one of the lowest, most business-friendly tax regimes in the world. As many other countries are looking to increase their tax rates, the government of Singapore is actually lowering its tax rates, all to attract talented entrepreneurs and professionals.
This guide presents a detailed information on income tax rates, tax system and tax incentives for Singapore companies.
Singapore’s headline corporate tax rate is 17%. The effective tax rate is in fact lower due to partial exemption available to all companies and even more favorable exemptions available to new companies setup. With its extensive double tax treaty network and absence of capital gains coupled with exemptions, makes Singapore the most attractive location for companies to setup.
Single-Tier Income Tax System Tax paid by a company on its income is the final tax and all dividends are exempt in the hands of shareholders from further taxation. (i.e. dividends are tax free).
Income Tax Basis Period In Singapore, the statutory Income for the Year of assessment is computed based on the income derived in the preceding calendar year (known as the basis year) from all sources. Singapore taxes income on territorial basis.
Product and Innovation Credit (PIC) Scheme
The Product and Innovation Credit (PIC) Scheme has been further enhanced for Singapore Budget 2011. It is a scheme to provide tax incentives so as to encourage business to invest and upgrade along the innovation value chain
Stamp Duty & Property Tax
Stamp duty is levied on legal instruments relating to the sale, mortgage or lease of immovable property and the sale or mortgage of stocks and shares.
Tax Incentives includes Pioneer Incentive, Development and Expansion Incentive, Investment Allowances, Approved Royalties Incentive, Local Enterprise Finance Scheme (LEFS) and Local Enterprise Technical Assistance Scheme (LETAS).
Rikvin provides a full spectrum of corporate services under one roof for Singapore company incorporation, assistance to register a Singapore company, accounting, tax, Singapore income tax, work pass and related compliance services both for individuals and companies worldwide.
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