Gains or profits from any employment which accrue in or are derived from Singapore or received in Singapore from outside Singapore are taxable in Singapore [Section 10(1)(b)].

Generally, overseas income received in Singapore on or after 1 January 2004 is not taxable. These include overseas income paid into a Singapore bank accounts. As such, there is no necessity to declare the overseas income in the personal income tax return.

After Year 2007, all dividend income (listed and private limited company) and interest income from approved banks and financial institutions are tax exempt.

Our services include:

• Personal income tax filing and compliance
• Tax advisory and planning
• Tax efficient structuring of employment packages

Tax rates for resident individuals From YA 2017

NEW: Personal Income Tax Rebate of 20% of tax payable will be granted to all individual tax residents for YA 2017 (i.e. for income earned in 2016). The rebate will be capped at $500 per taxpayer. 

Click HERE for resident individuals tax rates from YA 2013 to YA 2016.

Corporate Tax

A company is taxed at a flat rate of 17% on its chargeable income after tax exemption.

Our services include:

• Corporate tax filing and compliance
• Singapore tax structuring and planning
• Optimizing use of tax incentive and exemptions
• Negotiation of tax incentives and dispute with tax authorities

Tax Exemption Scheme for New Start Up Companies

From Year of Assessment (Y/A) 2005, normal chargeable income (excluding Singapore franked dividends) of up to S$100,000 for each of a qualifying company's first three consecutive Years of Assessment is granted tax exemption. With effect from Y/A 2008, the cap has been increased to S$300,000 and the exempt amount is computed as follows:

• 100% tax exemption on the first S$100,000;
• 50% tax exemption on the next S$200,000.

Partial Tax Exemption

Companies that do not qualify for the tax exemption scheme for new start up companies will enjoy a partial tax exemption on their normal chargeable income (excluding Singapore franked dividends). From Y/A 2008, the exempt amount computed based on a company's first S$300,000 normal chargeable income is as follows:

• 75% tax exemption on the first S$10,000;
• 50% tax exemption on the next S$290,000.

Click HERE for more information.

When a person makes payments of the following nature to a non-resident company, he has to withhold tax. The amount of tax withhold (i.e. withholding tax rate) is dependent on the nature of payment.

Nature of payment which attracts withholding tax include:

• Interest, commission, fee in connection with any loan or indebtedness
• Royalty or other payments for the use of or the right to use any movable property
• Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information or for the rendering of assistance or service in connection with the application or use of such knowledge or information Management fees
• Rent or other payments for the use of any movable property
• Payment for the purchase of real property from a non-resident property trader
• Director fees paid to a non-resident director

Rate of withholding tax

Varies from 10% to 15% depending on the nature of payment and also whether the there is a Double Taxation Agreement concluded between Singapore and country in which the recipient of such payment is currently residing. For director fees, the withholding tax rate is 18% (Y/A 2008).

Penalty for non-compliance

Maximum is 20% of the withholding tax outstanding for each Year of Assessment.

Click HERE for more information.

Business can enjoy 400% tax deductions/ allowances and/or 60% cash payout for investment in innovation and productivity improvements under the Productivity and Innovation Credit (PIC) scheme. The tax benefits under PIC are available from Years of Assessment (YAs) 2011 to 2018, for investment in any of the six qualifying activities.

The productivity improvement activities covered under PIC are:

• Acquisition and leasing of PIC Information Technology (IT) and Automation Equipment;
• Training of employees;
• Acquisition and In-licensing of Intellectual Property Rights;
• Registration of patents, trademarks, designs and plant varieties;
• Research and development activities; and
• Design projects approved by Design Singapore Council.

Our services include:

• Consultation and advisory on eligibility of PIC claim
• Preparation and submission of PIC application

Click HERE for more information.