Foreign individuals living in Singapore or foreign companies with business activities established here have to comply with the local taxation system. Taxes to which the above mentioned are liable to have to be paid at the Inland Revenue Authority of Singapore (IRAS), an institution working under the supervision of the Ministry of Finance.
IRAS is responsible for collecting taxes from both local and foreign entities, as prescribed by the local legislation. Foreign investors interested in a detailed presentation of the local taxation framework can receive assistance on this matter from our team of accountants in Singapore.
Tax policies applicable in Singapore
The Singaporean government has established that the main fiscal policies applied by the state financial institutions refer to measures which will sustain the economic growth of the state; at the same time, the local institutions have to focus on keeping a stable budget.
Taxation is a part of the fiscal policies of the Singaporean state, and it has the purpose of sustaining and developing the national revenue. The revenue collected from taxes applicable to both individuals and companies represent a major source of income; our team of accountants can provide you with more details on the fiscal policies applicable in Singapore.
Taxes in Singapore are applicable under the several tax legislations. The most important rule of law is the Income Tax Act; foreign investors should know that their company in Singapore can benefit of tax deductions and incentives if the country of origin of the foreign company has signed a double taxation treaty with Singapore.
Singapore applies the following taxes:
• income tax – applicable to both individuals and companies;
• property tax – applicable to owners of properties in Singapore;
• motor vehicle tax;
• customs and excise duty – only few products which are imported in Singapore are imposed with a customs and excise duty; the Singaporean authorities apply this tax on tobacco, petroleum products and alcohol;
• goods & service tax – the tax was introduced in the local taxation system in 1994 and it is applicable to goods and services traded on the local market;
• betting and casino taxes.
If you need further information on the taxation system available in Singapore, please contact our accounting firm for assistance.