Tax Compliance

2019-06-19
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Tax for Non-Resident Director

Tax for Non-Resident Director Whether withholding tax is applicable depends on the residency status of the board director.   Board Director For tax purposes, a board director is a member of the board of directors of a company.   Residency Status of Board Director Physical presence in Singapore in the year preceding the Year of Assessment (YA) Residency status Withholding Tax required Less than 183 days  Non-Resident Yes, for remuneration paid to non-resident director. For details, refer to Tax Obligations for Non-Resident Directors  183 days or more Resident No. If tax has been withheld, see also Tax Refunds for Resident Directors   Executive Director […]
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2019-06-24
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Pay GST

Pay GST How to Pay GST GIRO is the preferred method of payment. GIRO Majority of taxpayers use GIRO for tax payment. Electronic Payment Modes PayNow QR New! Internet Banking Bill Payment Internet Banking for tax payment is made available by the following banks: BOC  CIMB  Citibank  DBS/POSB  HSBC  ICBC  MayBank  OCBC  RHB  Standard Chartered Bank  State Bank of India  UOB (BOC, CIMB, Citibank, ICBC, MayBank, RHB and State Bank of India are applicable for individual account holders only). DBS PayLah! Mobile App Pay your tax via DBS PayLah! Phone Banking Phone Banking service for DBS/POSB, OCBC and UOB account holders who have subscribed to this service. (DBS/POSB and OCBC are applicable for individual account holders only.) […]
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2019-07-23
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Corporate Income Tax Rate

Corporate Income Tax Rate Year of Assessment (YA) Tax rate Tax exemption/ rebate 2013 and subsequent YAs 17% Partial tax exemption and tax exemption scheme for new start-up companies Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Partial tax exemption for companies (from YA 2020) Chargeable income % exempted from Tax Amount exempted from Tax First $10,000 @75% =$7,500 Next $190,000 @50% =$95,000 Total $200,000 =$102,500 Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020) Chargeable income % exempted […]
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2019-08-13
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Personal Income Tax Rate

Personal Income Tax Rate Income tax rates depend on an individual’s tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA) if you are a: Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA. Otherwise, you will be treated as a non-resident of Singapore for tax purposes.   Resident Tax Rates From YA 2017 onwards Chargeable Income Income Tax Rate (%) Gross Tax Payable ($) First $20,000 Next […]
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2019-09-13
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Foreign-Sourced Income

Foreign-Sourced Income The Tax Exemption A Singapore tax resident company can enjoy tax exemption on its specified foreign income that is remitted into Singapore. Categories of Foreign-Sourced Income The three categories of specified foreign income are: Foreign-sourced dividend; Foreign branch profits; and Foreign-sourced service income. Qualifying Conditions for Tax Exemption Under Section 13(9) of the Income Tax Act, tax exemption will be granted when all of the following three conditions are met : The foreign income had been subject to tax in the foreign jurisdiction from which they were received (known as the “subject to tax” condition). The rate at which the […]
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2019-09-23
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Who Needs To Pay GST

Who Needs To Pay GST When doing business in Singapore, it is important for companies to understand the Singapore Goods and Services Tax (GST). GST is also known as the value-added tax (VAT) in other countries, and is levied on the supply of goods and services in Singapore and the import of goods into Singapore. Businesses are required to submit quarterly GST returns to the Inland Revenue Authority of Singapore (IRAS). GST-registered companies in Singapore can engage in a variety of activities, both commercial and non-commercial in nature. A taxable person is not entitled to claim input tax credit in […]
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2019-10-03
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GST Computation

GST Computation How It Works Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT. GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated. Taxable and Non-Taxable Goods and Services The table below lists […]
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2019-10-16
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Withholding Tax Rate

Withholding Tax Rate Withholding Tax Rates for Services, Interest, Royalty, Rent of Movable Properties, etc. Nature of Income Tax Rate Interest, commission, fee or other payment in connection with any loan or indebtedness 15% 1 Royalty or other lump sum payments for the use of moveable properties 10% 12 Royalty and other payment made to author, composer or choreographer 22% 2 Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information 10% 12 Rent or other payments for the use of moveable properties 15% 1 Technical assistance and service fees Prevailing Corporate Tax rate 35 Management fees Prevailing […]
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2019-11-06

What is Corporate Tax

Corporate Tax Corporate income tax rate Companies, whether local or foreign, are taxed at a flat rate of 17% of their taxable income. General rule for all companies All Singapore companies are required to pay tax on income from the previous financial year. The income from the 2019 Financial Year will be taxed in 2020. Base period and year of assessment For tax purposes, using the same example above, 2020 is the year of assessment (YA). In other words, YA is the year in which your income is assessed for taxation. In order to assess the tax, the Inland Revenue […]
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