ntroduction of Singapore Taxation System. There are several reasons for investors turn to Singapore for establishing their operations and one of the determinants is Singapore’s tax regime – well-known for its attractive corporate and personal tax rates, tax relief measures, non-taxable capital gains, one tier tax system and extensive double tax treaties.
Persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Singapore are chargeable to tax on all profits that “accrued in” or “derived from” Singapore as well as income received from outside Singapore.
Singapore Taxation System
Income Tax is chargeable on income of individuals at progressive tax rates, with current highest personal income tax rate at 22% and companies are taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.
Property Tax is imposed on owners of properties based on the expected rental values of the properties.
Motor Vehicle Taxes are taxes, other than import duties, that are imposed on motor vehicles. These taxes are imposed to curb car ownership and road congestion.
For Customs & Excise Duties, Singapore is a free port and has relatively few excises and import duties. Excise duties are imposed principally on tobacco, petroleum products and liquors. Also, very few products are subject to import duties. These duties are mainly on motor vehicles, tobacco, liquors and petroleum products.
Goods & Services Tax (GST) is a tax on consumption. The tax is paid when money is spent on goods or services, including imports. This kind of indirect tax is also known as Value Added Tax (VAT) in many other countries. Currently the tax rate is at 7%.
For payment(s) of a specified nature (e.g. Royalty, Interest, Technical Service Fee, etc.) to a non-resident company or individual, it is required to withhold a percentage of that payment and pay the amount withheld to IRAS. This is called Withholding 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.
Other taxes are com/prised of two main taxes, they are the foreign worker levy and the airport passenger service charge. The foreign worker levy imposed to regulate the employment of foreign workers in Singapore.
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