corporate tax in singapore, by paul hype page
DESCRIPTION
Singapore Company formation? Why Singapore? Singapore Tax Authority (IRAS) helps to develop a stronger community, a better environment and a more vibrant economy. Singapore attracts more investments from all over the world by reducing its corporate income tax rate and introducing different types of tax incentives. Thus, Singapore corporate tax rate is one of the lowest in the world, with the current rate being 17%. Your First Year of Assessment(YA) The first YA refers to the YA relating to the basis period during which the company was incorporated. A newly incorporated company that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for each of its first three consecutive YAs. From the fourth YA onwards, your company will be given partial tax exemption instead of the exempt amount for new start-up companies. Single-Tier Income Tax System Tax paid by a company on its chargeable income is the final tax and all dividends paid to its shareholders are tax free There is no tax on capital gains in Singapore Tax Residence of a Company A company is regarded as resident in Singapore for tax purposes if its management and control are exercised in Singapore. In other words, the place where the directors of a company manage and control its business and hold their board meetings is the place where the company is deemed resident. Tax Treaties A double taxation occurs where an income is taxed twice, that is, first at the source where it is generated and for a second time where it is received. Double taxation Agreements (DTA) concluded between countries, such that the country of residence would usually agree to either give credit to its residents for income which is taxed at reduced rates, or exempt such income from tax. Tax Exemption Scheme for New Start-up Companies To qualify for the tax exemption for new start-up companies, your company must: 1. incorporated in Singapore 2. tax resident in Singapore 3. have no more than 20 shareholders 4. one shareholder is an individual beneficially and directly holding at least 10% of the issued ordinary shares of the company.. At Paul Hype Page & Co. we help companies with their strategic tax planning. Tax advisory services we provide include: • Singapore Tax Planning • International Tax Planning Plan your taxes wisely. You should make sure your business start on the right foot! Paul Hype Page & Co. can offer a wide range of services. From providing startup advice and consulting, to assisting with incorporation and legal matters, we are here to help! Call us at +65 6221 4711 Or email to [email protected]TRANSCRIPT
CORPORATE
TAX
IN S
INGAPORE
PAU
L HY P E P
AG
E AN
D C
O.
WHY SINGAPORE
1. Strategic location
2. Flexible Immigration Laws
3. Minimal Bureaucracy
4. Favorable Tax Rates
5. Skilled Human Resources
6. Protection of Intellectual property rights
7. Higher Quality of Life
We are here to help! (65)6221 4711 [email protected]
STARTING A BUSINESS IN SINGAPORE
Singapore continues to attract foreign investment simply because it is consistently voted as one of the best countries in the world for business.
Singapore boasts legal and business framework that is transparent.
However, there are a few things that one needs to consider
before starting a business in Singapore.
The type of business you register could also affect the
amount of taxes you need to pay.
We are here to help! (65)6221 4711 [email protected]
SINGAPORE CORPORATE TAX RATE
Singapore Tax Authority (IRAS)
helps to develop a stronger community, a better environment and a more vibrant economy. Singapore attracts more investments from all over the world by reducing its corporate income tax rate and introducing different types of tax incentives. Thus, Singapore corporate tax rate is one of the lowest in the world, with
the current rate being 17%.
We are here to help! (65)6221 4711 [email protected]
TAX EXEMPTION
Your First Year of Assessment(YA)
The first YA refers to the YA relating to the basis period during which the company was incorporated.
A newly incorporated company that satisfies the qualifying conditions can claim for full tax exemption on the first $100,000 of normal chargeable income* (excluding Singapore franked dividends) for each of its first three consecutive YAs.
From the fourth YA onwards, your company will be given partial tax exemption instead of the exempt amount for new start-up companies.
We are here to help! (65)6221 4711 [email protected]
HEAR FROM THE EXPERTS
Income Tax Basis PeriodIn Singapore, the statutory Income for the Year of assessment is computed
based on the income derived in the preceding calendar year (known as the basis year) from all sources.
Income Tax Filing Due DateThe company has to file a complete set of returns including Form C,
audited/unaudited accounts, and tax computation.As the filing due date has been extended to 30 Nov of each year, companies
have at least 11 months to file their tax returns. All companies are required to file their returns by the due date. Please submit the tax returns by the due date to avoid enforcement actions such as composition or summons issued to the company.
Single-Tier Income Tax SystemSingapore has introduced a single-tier corporate income tax system. Tax paid
by a company on its chargeable income is the final tax and all dividends paid to its shareholders are tax free.
There is no tax on capital gains in Singapore. (gains on sale of fixed assets, gains on foreign exchange on capital transactions, etc.)
We are here to help! (65)6221 4711 [email protected]
TAX RESIDENCE OF A COMPANY
Whether or not a company is consider as tax resident in Singapore?
Liability to account for Singapore tax in respect of dividend payments;
Liability to Singapore withholding tax in respect of certain categories of interest, royalty and management fee payments;
Eligibility for relief from foreign taxes under the provisions of Singapore’s double taxation agreements;
Eligibility for double tax credit relief in respect of income which is liable to tax in both Singapore and an overseas jurisdiction;
Liability to Singapore tax in respect of foreign-source income received in Singapore.
A company is regarded as resident in Singapore for tax purposes if its management and control are exercised in
Singapore (where the directors manage and control its business and hold their board meetings).
TAX EXEMPTION
To qualify for the tax exemption for new start-up companies, your company must:
Be incorporated in Singapore(other than a company limited by guarantee**);
Be a tax resident* in Singapore for that YA;Have no more than 20 shareholders throughout the basis period for
that YA where:All of the shareholders are individuals beneficially and directly
holding the shares in their own names; ORAt least one shareholder is an individual beneficially and directly
holding at least 10% of the issued ordinary shares of the company.A company is resident in Singapore if the control and management
of its business is exercised in Singapore.With effect from YA 2010, the scheme will be extended to
companies limited by guarantee, subject to the same conditions imposed on companies limited by shares.
We are here to help! (65)6221 4711 [email protected]
PLAN YOUR TAXES WISELY
Paul and Hype Co. team of skilled and qualified staffs whose responsibility is to ensure that your business is complying with the local laws and entities. There are various types of tax incentives available to companies.
At Paul Hype Page & Co. we help companies with their strategic tax planning. Tax advisory services we provide include:
Singapore Tax Planning International Tax Planning
As entrepreneurs, you need to know that the central business decisions are correctly
implemented in compliance with local entities and laws.
CONTACT PAUL HYPE PAGE & CO. TODAY
You should make sure your business start on the right foot!
Paul Hype Page & Co. can offer a wide range of services. From providing startup advice and consulting, to assisting with incorporation and legal matters, we are here to help!
Call us at +65 6221 4711Or email to
At Paul Hype Page & Co, you don’t pay us by the hours, you gain by the value we provide in that hour!
We are here to help.