Taxation Singapore
Newly established companies receive considerable tax benefits during the first three years. Tax is exempt for the first S$ 100,000 of income. From S$ 100,001 to S$ 300,000 the tax rate is 9 % and from S$ 300,000 the normal tax rate of 17% will be charged.
Taxation of newly established companies with at least one natural person as shareholder (for the first 3 years):
Note: The following conditions must be fulfilled:
- Incorporation in Singapore
- Liability to pay tax in Singapore for assessment year
- Not more than 20 share holders in the year of assessment
- All share holders have to be natural persons or in case of non-natural persons as share-holders at least 1 share-holder has to be a natural person.
Taxation of newly established companies which do not fulfil the conditions mentioned above (for the first 3 years):
Dividends from Singaporean incorporated companies are not taxed in Singapore.
Other Tax Rates
To promote foreign capital flows into Singapore, various tax incentives in the form of low corporation taxes for different branches of industry are being offered:
| Finance & Treasury Centre Co. | 10% |
| Fund Manager | 10%/exempt |
| Company manager | 10% |
| International Commodity Trader | 10% |
| Offshore-Leasing | 10% |
| Oil-Trader | 10% |
| Securities companies | 10%/exempt |
| Arts & Antique Trader | 10% |
| Insurance and Reinsurance | 10%/exempt |
| Financial Sector Incentive Co. | 5% / 10% |
| Cyber-Trader | 10% |
| Commodity Derivate-Trader | 5% |
Personal Income Tax
Taxable Income
Every income received or invoiced in Singapore is subject to taxation.
Any income arising outside Singapore is not taxed. This does not apply to foreign income from private companies in Singapore.
Capital gains from assets in Singapore are not subject to any taxation.
Assessment year 2007
| Income ($) | (%) | Amount ($) | |
|---|---|---|---|
| The first The next |
20 000 10 000 |
0 3.50 |
0.00 350.00 |
| The first The next |
30 000 10 000 |
5.50 | 350.00 550.00 |
| The first The next |
40 000 40 000 |
8.50 | 900.00 3 400.00 |
| The first The next |
80 000 80 000 |
14 | 4 300.00 11 200.00 |
| The first The next |
160 000 160 000 |
17 | 15 500.00 27 200.00 |
| The first Above |
320 000 320 000 |
20 | 42 700.00 |
