FAQs of Singapore Company Incorporation
FAQs of Singapore Company Incorporation
FAQs of Singapore Company Incorporation
- Q:
- What is the rate of Corporate Income Tax in Singapore? When should the declaration be made?
- A:
- The rate is 17% and the Corporate Income Tax of the previous year shall be declared before November 30 every year.
- Q:
- What kind of taxpayers cannot enjoy Corporate Income Tax preference?
- A:
- Companies whose main business only include the investment in other companies and whose main business is the development, sales and investment in real estate.
- Q:
- What is the taxation scope of Consumption Tax in Singapore? When should the declaration be made?
- A:
- Turnover in sales of taxable goods and services in Singapore exceeds SGD 1,000,000
- Turnover in sales of taxable goods and services in Singapore is likely to exceed SGD 1,000,000
- Q:
- What is the rate of Consumption Tax in Singapore?
- A:
- The rate of Consumption Tax is 9%, while the rate on export goods and services is zero.
- Q:
- What is the definition of a natural person as a tax resident in Singapore?
- A:
- A Tax Resident is a taxpayer who has resided (except for reasonable temporary leave) or worked (except as a company director) in Singapore for more than 183 days during a tax year. In addition, Singapore Permanent Residents (SPR) who have recently settled in Singapore and residents who have worked in Singapore for three consecutive years, even if they have resided in Singapore for less than 183 days in the first and third years, are also Tax Residents. Tax Residents are required to pay tax on income earned in Singapore and income received in Singapore from sources outside Singapore as a result of employment with a Singaporean company.
- 183 days refers to the number of days you stay in Singapore during your employment in Singapore, including weekends and public holidays. Leaving Singapore for a reasonable reason during employment, such as an overseas holiday or business trip, will also count as part of the stay
- "Non-tax residents" is a foreign individual who works in Singapore for less than 183 days in a calendar year, who have been employed in Singapore for up to 60 days in a calendar year are exempt from personal income tax, except for non-resident individuals who are directors, entertainers or students in Singapore.
- Non-tax Residents shall pay Income Tax only on their income earned in Singapore at a rate of 15% or the rate of resident's Individual Income Tax, whichever is higher. Non-tax Residents shall not apply for deductions of Individual Income Tax.
- Non-tax Residents' director fees, advisory fees and other income shall be taxed at a rate of 24%.
- Tax Resident are entitled to Individual Income Tax deductions for child support, vocational training, insurance and Contributions of Provident Fund (CPF).
- Q:
- When should the Individual Income Tax be declared in Singapore?
- A:
- Individual Income Tax of the previous year should be declared during March 1 to April 15 of each year. The individual whose annual income is less than SGD 20,000 does not need to pay any taxes, but is still required to declare, unless has received a letter from the tax bureau, clearly indicating that there is no need to declare.
