{"id":419,"date":"2020-07-20T03:24:04","date_gmt":"2020-07-20T03:24:04","guid":{"rendered":"https:\/\/acrabiz.com\/offshore\/?p=419"},"modified":"2020-07-21T03:59:56","modified_gmt":"2020-07-21T03:59:56","slug":"what-is-corporate-tax-in-singapore","status":"publish","type":"post","link":"https:\/\/acrabiz.com\/offshore\/what-is-corporate-tax-in-singapore\/","title":{"rendered":"What is corporate tax in Singapore"},"content":{"rendered":"\n
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Overview of Singapore Corporate Tax<\/b><\/span><\/p>\n

Did you know that Singapore doesn\u2019t have Value-Added Tax, but the Goods and Services Tax (GST) instead? How does zero percent GST for businesses providing international services sound to your company? What is the tax exemption scheme for new start-up companies?<\/span><\/p>\n

In this article, we will provide an overview of corporate tax in Singapore, GST rates for local and international services, tax exemption schemes and corporate income tax rebates.<\/span><\/p>\n

Overview of Corporate Income Tax in Singapore<\/b><\/span><\/p>\n

Singapore generally imposes income tax on a territorial basis, so only oncome accruing in or derived from Singapore or foreign-sourced income received or deemed received in Singapore is subject to Singapore income tax. A company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2015 will be taxed in 2016. With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.<\/span><\/p>\n

Goods and Services Tax (GST)<\/b><\/span><\/p>\n

Implemented on 1st April 1994 in Singapore, Goods and Services Tax (GST) Act 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, it is commonly known as the Value-Added Tax (VAT). <\/span><\/p>\n

Presently, the Inland Revenue Authority of Singapore (IRAS) acts as the agent of the Singapore government and administers, assesses, collects and enforces payment of GST. The current rate of GST is 7%. If your annual taxable supplies exceed $1million, it is compulsory for you to register for GST. Otherwise, you may choose to register for GST voluntarily after careful consideration.<\/span><\/p>\n


Zero GST on Businesses Providing International Services<\/b><\/span><\/p>\n

Your services are considered international services, which are zero-rated (i.e. GST is charged at 0%), if they fall within the provisions under Section 21(3) of the GST Act.  <\/span>Depending on the nature of your services, you may be required to determine your customer’s belonging status (i.e. whether the customer is a local or an overseas entity) before your supply of services can be zero-rated.<\/span><\/p>\n

Tax Exemption Scheme for New Start-up Companies<\/b><\/span><\/p>\n

For newly incorporated Singapore companies which are Singapore tax resident, Singapore has introduced the tax exemption scheme to encourage entrepreneurship and to aid growth of local business. To qualify, the company must not have more than 20 shareholders throughout the basis period if:<\/span><\/p>\n