【Singapore Company Registration Tips】How much do you know about Singapore corporate income tax?-FOZL

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【Singapore Company Registration Tips】How much do you know about Singapore corporate income tax?

In principle, income earned or received from overseas in Singapore must be taxed. In terms of corporate tax, dividends remitted from overseas, profits from overseas branches, and service income earned overseas may be tax-exempt if the stipulated conditions are met. As for personal income tax, overseas income remitted from overseas may be tax-exempt. Singapore's consistently clear tax system is also highly competitive among developed countries, attracting considerable attention from foreign investors. Today, FOZL will help you understand Singapore's corporate tax and tax exemption schemes!

Singapore Corporate Tax

Singapore adopts a unified corporate income tax policy for both domestic and foreign-invested enterprises.

Singapore companies' corporate tax is declared once per financial year, not monthly.

The corporate tax payable by Singapore companies is based on the pre-tax profit of the company's financial year, not on turnover.

The corporate tax rate for Singapore companies is 17% This tax rate is based on the 2010 Singapore tax budget. Singapore companies enjoy tax exemptions based on this rate.

Singapore Corporate Income Tax Rate

The current corporate tax rate in Singapore is 17%

Nine Preferential Schemes for SMEs in Singapore

1. Innovation and Capability Voucher (ICV)

2. iSPRINT (Integrated Scheme for Productivity and Innovation)

3. Productivity and Innovation Credit (PIC)

4. Productivity and Innovation Credit (PIC) Incentives

5. Wage Credit Scheme (WCS)

6. SME Employee Training Program (Enhanced)

7. Enterprise Training Support Scheme (ETS)

8. WorkPro (Optimize Workplace Program)

9. Micro-Loan Program (MLP)

The more popular incentive schemes include “Productivity and Innovation Credit Scheme (PIC)” This is a tax incentive scheme where companies can enjoy additional tax deductions and cash subsidies for investments in productivity and innovation improvements. Related expenses can enjoy 160% cash subsidies, with a total amount of SGD 15,000. Amounts exceeding SGD 15,000 can enjoy 60% government subsidies.

This scheme covers the following six expense items:

a. Designated automation equipment (such as computers, computer software, point-of-sale systems, printers, CNC cutting machines, handheld computers, CAD, system software, scanners)

b. Employee training

c. Registered intellectual property

d. Acquisition of intellectual property

e. Research and development

f. Approved design projects

For example: Company A spent SGD 1,000 on a computer. The company can apply to the government for a PIC subsidy of 1000 x 160% = SGD 1,600. The subsidy will be sent to Company A by check.

Wow! It turns out that Singapore has one of the lowest corporate tax rates. Singapore has always adhered to a pro-business philosophy, which is why it has attracted so much foreign investment!

Singapore Goods and Services Tax (GST): A Must-Know for Business Development

【Singapore Company Registration Tips】It's the end of the year, how to declare Singapore company tax? See here!

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【Licensing】Food Import Licence

All companies wishing to import, export, or trans-ship food products must be registered and licensed by the Singapore Food Authority in accordance with the relevant laws of Singapore.

【Licensing】Custom Registration

Companies registered in Singapore can directly engage in international trade. If a company intends to import products into Singapore, the goods must undergo customs clearance upon arrival. This requires the company to submit an application to Singapore Customs in advance and obtain the necessary registration or permits. Once the customs registration is approved, logistics companies or customs brokers can declare the goods to Singapore Customs on behalf of your company, pay Goods and Services Tax (GST), and import the goods into Singapore.

【Licensing】13R & 13X

For investments in Asia and the Pacific, Singapore is an important base for family offices, private equity, real estate, and hedge fund managers.

【Licensing】Ship Registration

The Singapore ship registration system is administered by the Maritime and Port Authority of Singapore (MPA). The following outlines the eligibility, procedures, and documentation requirements for registering a vessel in Singapore.

【Licensing】Fund Management Licence