|
| |||||||
| Tax Planning In Singapore | |||||||
Tax planning in Singapore is simple compared to other international jurisdictions due to it's easily comprehensible tax laws and low tax rates. Important considerations for tax planning in Singapore include:
| |||||||
1.
| When tax planning in Singapore, corporation tax for 2008 and 2009 is 18% of trading profits earned in Singapore. This tax rate will be further reduced to 17% from 2010 onwards. Taxes are only levied on income earned in Singapore provided the income is not remitted back into the country. | ||||||
2.
|
The Inland Revenue Authority of Singapore (IRAS) is the governing authority of tax administration in Singapore. | ||||||
3.
| A Private Limited Company in Singapore is required to submit financial statements complying with Singapore financial accounting standards annually to IRAS. Entrepreneurs tax planning in Singapore must submit these with an annual corporate tax return by 30 June. | ||||||
4.
| Entrepreneurs tax planning in Singapore should note that annual financial statements are exempt from a statutory audit if the corporate income does not exceed S$5 million and the shareholders of the Singapore Company are individuals. | ||||||
5.
| Up to the first S$200,000 (US$147,000) of profits is fully tax-exempt for new Singapore companies for the first three years of trading. | ||||||
6.
| Singapore levies a 7% Goods and Services Tax (GST) in lieu of value added tax (VAT) and import duty. However, a positive aspect of tax planning in Singapore is that company sales to international customers are GST-free. | ||||||
7.
| Entrepreneurs should note that local and international dividends accounted for in a Singapore Company are legally tax-exempt. | ||||||
8.
| Recently, ASC announced a that it is working towards full convergence with International Financial Reporting Standards (IFRS) for Singapore listed companies. To read more, please visit the Accounting and Corporate Regulatory Athority (ACRA) website. | ||||||
| 9. | Investors can benefit from the comprehensive double taxation treaties Singapore has signed with 62 countries, including Australia, China, France, Germany, India, Indonesia, Israel, Italy, Japan, Korea, Malaysia, Mexico, South Africa, Sweden, Switzerland and the UK. | ||||||
| More information | |||||||
For more detailed information on tax planning in Singapore, purchase our Asia Business Setup book. | |||||||
| Contact Us | |||||||
For more information on tax planning in Singapore, email email@healyconsultants.com or call us in Singapore at (+65) 6735 0120. | |||||||
|
Back to Home page | |||||||
