Summary of Tax System in Singapore

Tax Rate

Corporate tax rate is at flat rate of 17% with first 3 years exemption scheme applicable for new set up company.

GST is currently at 7%.

Withholding tax is range from 10% to 15% for Non-resident company and 10% to 22% for Non-resident individual.

For personal income tax, it ranges from 0% to 22% with tax reliefs and rebates for Singapore tax resident if met with the qualifying conditions.

Report Target

Corporate tax focus on Corporate sales, investment (real estate rental income, etc.), copyright, income from patent rights and other business income, capital gains (interest income, dividend income), transfer, gift, inheritance, etc. – Tax-free

GST focus on GST registered company (Compulsory registration (Retrospective View or Prospective View) – taxable turnover exceeding SGD 1M or voluntary registration), Import of goods, supplies of goods and services in Singapore as well as goods that are exported and international services are zero-rated.
Whereas for Withholding tax, it focuses on Non-Resident Companies; Non-Resident Professionals; Non-Resident Public Entertainers; Non-Residents Directors.

For personal tax, the targeted group is those individual’s with Annual income is equal or more than SGD22,000 or received letter/SMS from IRAS; IR21 for Foreign and Singapore Permanent Resident (SPR) Employees who leaving Singapore for more than 3months.

Notice of Assessment and Payment

Corporate Tax, ECI has to e-file within 3 months from the financial year end (except company qualifies for the administrative concession. Payment must be made within 30 days from the date of NOA for ECI filed (6~10 instalments applied for Company under GIRO arrangement). Actual tax return has to e-file by 15th December of each calendar year and payment must be made within 30 days from the date of NOA.

For GST, return generally is on quarterly basis according to end of financial year (ie. Jan-Mar). Payment is due one month after the end of the period cover by the return (for GIRO payment will be due on 15th of the subsequent month after the payment due date).

For withholding tax, filing is due by 15th of the second month from the date of payment or due and payable on contractagreement. If company are on GIRO for withholding tax payment, the GIRO deduction date is on the 25th of the month the tax is due. Digital Confirmation of Payment (CP) showing the amount withheld will be available for viewing or downloading in myTax Portal within 3 working days upon successful GIRO deduction or 10 working days upon the receipt of payment for other modes of payment. No hardcopy CP letter will be sent. The CP will only be issued for payment of withholding tax of SGD 1 and above, and will not include any late payment penalty amounts.

For Personal tax, E-file period is from 1 Mar to 18 Apr every year; or Paper filing by 15 Apr of each year. Payment is to be made in accordance with the payable date on the NOA (Up to 12 instalments under GIRO arrangement). For IR21, employer require to file tax clearance and settle tax payment before release final salary to foreign workers or SPR who leave Singapore for more than 3 months.

How to e-file of tax return

Online filing is available via the IRAS website for Corporate tax, GST, withholding tax and Personal tax.

Required Form for submission

For Corporate tax, the required documents are Form C-S (Lite)/Form C-S/Form C, Audited/Unaudited Financial Statement and Tax computation with relevant tax schedule.

For GST, form to be submitted is GST F5 (for Periodic filing), GST F7 (applicable for Filing of GST error), GST F8 (Final filing for GST deregistration).

Withholding tax refer to form IR37

For personal tax, IR8A, IR21 is required.

Additional Penalties

For Corporate tax, it is an offence if a company fails to file its Form C-S (Lite)/Form C-S/Form C together with financial statements and tax computation before the due date. The composition amount ranges from SGD 200 to SGD 1,000 will be imposed. For non-payment of outstanding tax, ranges 5% to 12% will be imposed on the unpaid tax amount.

For GST, late submission penalty 5% of the calculated tax amount when the report is delayed; and ranges SGD 200 to SGD 10,000 for GST return if it is not filed before due date. Further late Payment Penalty ranges 5% to 50% will be imposed for each month that the tax remains unpaid.

For withholding tax, Late payment penalty 5% and subsequent 1% (not exceeding 15% of total tax outstanding) for each completed month will be imposed.
For personal tax, Estimated Notice of Assessment (NOA) will be issued by IRAS, payment must made within one month. Offer to compound the offence with composition amount not exceeding SGD 1,000 and Summon to Court.