Singapore Taxation Singapore has always played the role of a financial center in Asia and even the world.
According to the "Global Competitiveness Report" released by the World Economic Forum, Singapore is one of the top 10 regions with the lowest total tax rate in the world. It is precisely because of its obvious tax advantages that Singapore has become an ideal base for companies to expand into the Asian market.
The current tax types in Singapore are mainly property tax, customs duty, stamp duty, personal income tax, consumption tax, corporate income tax, vehicle and vessel tax, etc. For Singapore companies that do not have property in Singapore and operate offshore, the main tax involved is corporate income tax.
Like other offshore company registration places, the Singapore government also exempts the offshore income of the companies under its jurisdiction from taxation. At the same time, it also grants a certain amount of tax-free treatment to new start-up companies to support their development.
However, it should be noted that if the overseas income of a Singapore company is received in Singapore, the Singapore government will still tax this part of the income.
For newly established Singapore companies, the Singapore government provides a full tax exemption policy
Singapore company tax policy
1. This policy actually has certain restrictions. It must be a brand-new company established in Singapore, with a registered address in Singapore and no more than 20 shareholders in the fiscal year. The shareholders in the fiscal year are all independent individuals or companies (and these individuals are eligible for tax exemption. Conditions, at least 1 independent shareholder holds at least 10% of the shares), starting from the initial audit year, for 3 consecutive years, the first SGD 100,000 of annual income is exempt from tax.
2. Income above SGD 100,000 is taxed at a lower tax rate. Specifically, between SGD 100,000 and SGD 300,000, it is taxed at half of the normal tax rate: the part exceeding SGD 300,000 is taxed at the normal tax rate.
3. For Singapore companies that have been established for more than 3 years, the tax rate levied by the government is the first 100,000 SGD of annual income, which is taxed at a 1/4 tax rate: the part of 100,000-300,000 SGD is taxed at half of the normal tax rate; The portion exceeding SGD 300,000 is taxed at the normal rate. For financial behaviors such as loans and equity transfers of Singapore companies, the Singapore government will also levy stamp duty, usually based on the company's loan amount and the company's transferred capital.
double tax agreement
As one of the global financial centers, Singapore has reached double taxation agreements with more than 70 regions around the world, including Japan, China, and the United Kingdom. The double taxation agreement stipulates the taxation rights between Singapore and the treaty country on certain cross-border income, effectively avoiding double taxation. This is why many companies move their headquarters to Singapore. In recent years, the popular British technology company Dyson has moved its corporate headquarters from London to Singapore.
That is, the same income can enjoy low tax or even tax exemption in Singapore, while in other regions, it will be taxed as high as 20%-35%.
Singapore Family Office Tax Exemption Scheme
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Singapore has a strong business atmosphere and good market vitality, and there is another advantage of "tax paradise", which is enough to attract powerful high-net-worth individuals from all over the world to come to invest!