ANSWERS: 1
  • In Singapore the Corporate Income Tax is in the range of 8.5% - 17%. And Personal Income Tax is in the range of 0% - 22%. Goods and Services (GST) is at 7%. The tax paid by a Singapore business depends on the business structure used to form it. A Singapore private limited company pays corporate tax on its taxable income. However, a sole proprietorship or a partnership are considered as the business firms. Their income is considered as that of their owners who have to pay personal income tax it. A newly set up company in Singapore is entitled to full tax exemption for first three years under Tax Exemption Scheme for New Start-Up Companies . For the first 3 years, its taxable net income of up to S$100,000 is totally tax-free. Next, S$200,000 is taxed at 8.5%. The full tax exemption amount can be summed up as 100% x S$100,000 + 50% x S$200,000. In addition, there is a tax benefit scheme like Partial Tax Exemption for Companies (PTE) for the existing companies . It offers 75% tax exemption on a company's first SGD10,000 of chargeable income and 50% tax exemption on its next SGD290,000 of chargeable income. For a large number of Singapore companies, because of the tax rebates, exemptions and incentives, the effective tax rate paid comes down to 8.5% - 11%.

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