what are the tax rules for company in Singapore
Question
Leave an answer
sbssingapore
Register Now
If You're New to this Website - Create an Account for 100% Free !!
Answer ( 1 )
Singapore authorities support their businesses. They have offered numerous tax schemes, benefits and exemptions to them. Schemes like Singapore Startup Tax Exemption Schemes help new companies in taking roots. On the other hand, they are strict about statutory compliance and Singapore tax filing.
Singapore Corporate Income Tax for Pte Ltd
Singapore corporate income tax is a single-tier tax. It means income earned in Singapore is taxed. It is charged on a territorial basis and is paid on a preceding year basis. Income earned overseas is only taxed if it is repatriated to Singapore.
Singapore company tax is charged at a flat rate of 17%. However, with the availability of tax benefits and etc., the effective tax rate for a local Singapore company comes down to about 8.5%-9.5%. And the due date for filing company tax is 30 November.
Once you receive a ‘Notice of Assessment’ from IRAS, you need to file your tax by the date mentioned in it. Usually, you have a month to do so.
Personal Income Tax Filing
Singaporeans and permanent residents have to pay resident rates. Singapore personal income tax ranges from 0%-22% (S$320,000). The non-residents are charged at a flat rate of 15% to 22%. The deadline for filing a personal tax return is 15 April.
Sole proprietors and members in partnerships need to pay personal income tax on their income from their businesses. Depending on their income, they have to pay between 0%-22% of income tax.
Singapore GST Filing
Goods and services tax is a tax levied on consumption. It is charged on the supply of goods and services in Singapore. Its present rate is 7%.
As per the law, a business with projected or actual annual revenue above S$1 million must register for GST compulsory. There are a number of experienced Singapore tax services providers who can assist you in assessing the need of registering for GST. You can also register your business for it voluntarily. It is useful in claiming the input GST that you have to pay on the business purchase of goods and services.
If you are a GST registered business, then you have to collect 7% of GST from your customers and pay it to IRAS within a month after the end of your GST cycle. Many businesses prefer a quarterly cycle. Singapore tax services can take care of the GST calculation and prepare a detailed report for you, including the amount of input GST. They can also file NIL GST for you.
Withholding Tax
When a Singapore company pays a non-resident company or individual, it must withhold a portion of the payment. This is Withholding tax which it has to pay to the IRAS.
Property Tax
The property owners in Singapore have to pay Property tax. It is calculated on the expected rental values of the properties.
Singapore tax services employ consultants that have updated knowledge of the latest changes in their field. They can calculate your tax amounts to the last cent. They try to minimise it by applying the tax benefits and exemptions that are applicable to you. It pays to employ them, as many business owners, to be on the safer side, pay more in taxes than they should.