Singapore
1. Basis of Taxation
Income is taxed on territorial basis, in other words, tax is chargeable on income accrued in or derived from Singapore or received from outside Singapore. Foreign sourced income is exempt in the hands of individuals. Certain foreign sourced income is exempt for resident companies subject to conditions being satisfied. Income is assessable to tax on a preceding year basis, for example, income for 2011 is taxable in the year of assessment 2012.
2. Corporate Tax
The current corporate tax is 17%. There is partial exemption on the first $300,000 chargeable income that can reduce the tax rate to 8.36% or 5.67%.
There are tax incentives available such as the Development Expansion Incentive, Global Trader Program, Financial Sector Incentives that provide for concessionary tax rates ranging from 5, 10 and 15%.
3. Withholding tax rate (non-treaty)
|
Resident |
Non-resident Individual*/Corporation |
Dividends |
Nil |
Nil |
Interest |
Nil |
15% |
Royalties/know-how |
Nil |
10% |
Rents (for moveable property) |
Nil |
15% |
Management fees |
Nil |
15%*/17% |
Technical fees |
Nil |
15%*/17% |
Directors’ fees |
Nil |
20%* |
4. Resident individual tax rates
The residential individual is subject to graduated rate of taxes ranging from 0 to 20%.
Under the Not Ordinarily Resident Scheme, foreign talents working in Singapore can enjoy time apportionment basis of taxation, whereby they would be required to pay tax on attributed employment income based on days worked/spent in Singapore.
5. Non-resident individual tax rates
Short term visiting employee working in Singapore for less than 60 days is exempt.
The non-residential individual tax rate is the higher of a flat rate of 15% or applicable resident personal tax rates.
6. Goods and Services Tax
The current Goods and Services Tax rate is at 7%. It is a requirement to register for GST when taxable supplies are or exceeds S$1 million.
7. Estate duty
Estate duty has been abolished from 15 February 2008.
8. Stamp duty
For property transfer ranging from 1% to 2% on the first $360,000 and 3% thereafter. For share transfer S$0.20 for every S$100 or part thereof. Transfer of listed company shares do not attract any stamp duty. Sellers’ stamp duty has been effected for short term property transactions to curb property speculations.
9. Property tax
Owner occupied residential property is at 0 to 6%. Any other property at 10%.
10. Income tax filing deadlines
Types of Form |
|
Deadlines |
Form B |
Resident individual |
15 April 2011 |
Form M |
Non-resident individual |
15 April 2011 |
Form C |
Companies |
30 November 2011 |
Form P |
Partnerships |
15 April 2011 |
11. Double Tax Agreements.
Certain payments from Singapore to non-residents are subject to domestic withholding tax rates. The rates of taxes may be reduced under the terms of a double tax agreements with a treaty country as those listed in the Appendix.
Payments from Singapore to resident of countries as listed below
Country |
Dividend % |
Interest % |
Royalties % |
Albania
Australia
Austria
Bahrain
Bangladesh
Belgium
Brunei
Bulgaria
Canada
China (People’s Republic)
Cyprus
Czech Republic
Denmark
Egypt
Estonia
Fiji
Finland
France
Georgia
Germany
Hungary
India
Indonesia
Israel
Italy
Japan
Kazakhstan
Kuwait
Latvia
Libya
Lithuania
Luxembourg
Malaysia
Malta
Mauritius
Mexico
Mongolia
Myanmar
Netherlands
New Zealand
Norway
Oman
Pakistan
Papua New Guinea
Philippines
Poland
Portugal
Qatar
Romania
Russian Federation
Saudi Arabia
Slovak Republic
Slovenia
South Africa
South Korea
Sri Lanka
Sweden
Switzerland
Taiwan
Thailand
Turkey
Ukraine
United Arab Emirates
United Kingdom
Uzbekistan
Vietnam |
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil |
/Nil
10
5
5
10
15
5/10
5
15
10/7
10/7
Nil
10/Nil
15
10
10/Nil
5/Nil
10/Nil
Nil
8
5
15
10
7
12.5
10/Nil
10
7
10
5/Nil
5
10
10
7/10
Nil
15/5
10/5
10/8
10
10
7
7
12.5
10
15
10
10
5
5
7.5
5
Nil
5/Nil
Nil
10/nil
10/nil
15/10
10/nil
15
15/10
10/7.5
10
7
10
5
10/nil |
5
10
5
5
10
Nil
10
5
15
10
10
10
10
15
7.5
10
5
Nil
Nil
8
5
10
15
5
20/15
10
10
10
7.5
5
7.5
10
8
10
Nil
10
5
15/10
Nil
5
7
8
10
10
15
10
10
10
5
7.5
8
10
5
5
15
15
Nil
5/nil
15
15
10
7.5
5
10
8
15/5 |
Updated: Aug 2011
This publication has been prepared for the purpose of quick information dissemination to our counterparts in other Countries. Its contents should not be used as a basis for advice or formulating decisions under any circumstances.
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