Individuals and companies living, respectively doing business in Singapore must pay the due levies in accordance with the taxation system imposed by the authorities here. For this purpose, they must submit tax returns based on which the amounts they need to pay will be computed.
Both types of taxpayers can use various tax planning solutions to obtain various deductions and exemptions with the authorities in Singapore.
Below, our accountants in Singapore explain the main tax optimization solutions one can use in the city-state. We can also provide various services that can help you reduce the amounts of money paid on taxes in accordance with the laws.
Table of Contents
The main taxes to be paid by private persons and companies in Singapore
Individuals and enterprises are subject to the income tax applied on personal income, respectively business profits in accordance with the residency status of the payers. There are also other important taxes that need to be paid in the city-state, among which the property tax is quite important.
Business planning, tax optimization solutions, support in filing for tax incentives and benefit schemes
Personal income tax rate
|Progressive rates ranging from 0 to 22%|
Corporate tax rate
|Standard flat rate of 17%|
|Income tax return filing deadlines|
Natural persons: April 15th for paper filings, April 18th for e-filing.
|Tax incentives for natural persons availability (YES/NO)||No|
|Tax optimization methods|
Access to tax credits and industry-related incentives for companies, tax deductions for donations.
|Tax benefits for expats (YES/NO)|
YES, personal income tax of 15% for non-residents, tax deductions under Singapore double tax treaties.
|Tax incentives for companies availability (YES/NO)||YES, investment allowances, incentives for international expansion, foreign tax credits, access to double tax treaties.|
|Access to industry-specific incentives (YES/NO)||Yes, incentives for manufacturing activities, for research and development operations, for the maritime sector|
|Audit services (YES/NO)||Yes|
Tax planning in Singapore implies finding a suitable way of reducing tax liability in a legal manner. Luckily, the Inland Revenue Authority in Singapore (IRAS) provides various tax exemptions that can be used as efficient tax optimization tools and thus obtain numerous benefits. To these, there is also the fact that Singapore is deemed as one of the most important financial hubs in Southeast Asia and offers increased confidence to all investors coming here.
Our accounting firm in Singapore is at the service of foreign and local investors with numerous services, including assistance in obtaining tax benefits in the city-state.
Tax planning services provided by our accountants in Singapore
Our specialists are at your service with the following tax planning solutions in Singapore:
- tailored support in drafting and filing income tax returns with the IRAS;
- providing assistance in finding the suitable tax deductions and exemptions you can obtain;
- optimization of the tax benefits you or your business is entitled to;
- obtaining various tax incentives for companies in accordance with the industries they operate in;
- other services based on the needs of private and corporate clients.
You should also know that as a foreigner in Singapore you are entitled to benefit from the city-state’s double tax treaty provisions, which is a matter where our accountants can help.
Tax planning for foreign citizens in Singapore
Natural persons who move to Singapore can obtain various tax benefits here. These are granted if they become residents of the city-state and one of the most important advantages is that they can obtain personal tax exemptions based on the earning they make here.
The personal income tax in Singapore is levied at progressive rates, the lowest being 0%, while the highest is 22%, which is still low compared to other jurisdictions. To this, a double tax treaty can lead to more effective tax planning, such as no dividend tax.
Companies tax planning in Singapore
When discussing tax optimization, companies are the entities to obtain most of the benefits as the authorities in Singapore offer various incentives to enterprises operating here. However, to qualify for them, certain requirements must be met. These are quite stringent which is where the assistance of a specialist or team of accountants enter and can lead to efficient tax planning in Singapore.
Our accounting firm in Singapore is at the service of local and foreign investors who want to maximize their profits by taking advantage of the legal pathways opened by the IRAS. For this, we can complete a thorough analysis of your financial accounts, as well as other aspects that can impact the benefits you can obtain.
Here are the main schemes the Singapore authorities have created for companies and that can be used as tax planning solutions:
- the Start-up Tax Exemption which was created newly registered enterprises, and which offers a full tax exemption on the first 100,000 SGD for the first 3 years of activities;
- the Partial Tax Exemption which provides for a 30% corporate tax exemption, but no more than 20,000 SGD per financial year and which is granted to certain businesses;
- the Productivity and Innovation Credit which grants tax deductions or allowances of up to 400% for up to 400,000 SGD spent on various investments for the company.
Some of these tax benefits are granted by the IRAS, other by specific agencies, such as the Economic Development Board which forwards the necessary documents to the IRAS.
For personalized tax planning in Singapore, feel free to contact our accountants who can provide case-on-case support.