14 July 2017
Tax Considerations in Singapore
The Inland Revenue Authority of Singapore (IRAS) is the main tax administrator to the Singaporean government and participates in tax treaty negotiations, drafts tax legislations, provides advice on property valuation to the government, as well as collecting tax. Singapore is ranked 8th out of 190 economies in the World Bank’s 2017 Doing Business report on the ease of paying taxes.
An overview of the major types of taxes levied in Singapore is provided in the table below. Other taxes may also be applicable, including estate duty and motor vehicle tax. Singapore and Hong Kong have entered into a Double Tax Agreement (2005), from which Hong Kong companies may be able to benefit.
|Corporate Income Tax (CIT)||A company is taxed on chargeable income earned in the preceding financial year.|
There are tax exemptions for new companies and partial tax exemption for all companies. Full details can be found on the IRAS website.
|Goods and Service Tax (GST)||Imposed on goods and services supplied in Singapore as well as on importation of goods. A business is required to register for GST if its annual taxable supplies is SG$1 million (US$700,000) or more.||7%|
|Personal Income Tax (PIT)|
PIT rates depend on an individual's tax residency status:
• Considered resident, if a Singapore Permanent Resident or a foreigner who has stayed/worked in Singapore (excluding director of a company) for 183 days or more in the previous year. PIT is taxed on worldwide income.
• Considered non-resident, if not meeting the above criteria. PIT is taxed on employment income and directors/consultation fees.
0% to 20%
22% (directors/consultation fees)
|Property Tax||Property tax is imposed on owners of properties based on the expected annual rental values of the properties.||Owner occupier:|
0% to 16%
10% to 20%
- Regulatory Environment
- Establishing a Presence
- Intellectual Property Protection
- Staff Recruitment
- Tax Considerations
- Import/Export Procedures
- Further information