Singapore Tax Filing ㅣ Corporate Income Tax
a. Singapore follows a territorial basis of taxation. In other words, companies and individuals are taxed mainly on Singapore sourced income.
Foreign sourced income (branch profits, dividends, service income, etc.) will be taxed when it is remitted or deemed remitted into Singapore unless the income was already subjected to taxes in a jurisdiction with headline tax rates of at least 15%. Although the concept of locality of the source of income seems simple, in reality its application often can be complex and contentious. No universal rule can apply to every scenario.
Whether profits arise in or are derived from Singapore depends on the nature of the profits and of the transactions which give rise to such profits.
b. Singapore corporate tax rate is capped at 17%.
By keeping corporate rates competitive, Singapore continues to attract a good share of foreign investment. Singapore follows a single-tier corporate tax system, where tax paid by a company on its profits is not imputed to the shareholders(i.e. dividends are tax free).
c. Singapore has no capital gains tax.
Capital loss expenses are correspondingly not allowed as deductions.
d. Singapore has concluded more than 50 bilateral comprehensive tax treaties to help Singapore companies minimize their tax burden.