Singapore Tax Filing ㅣ Corporate Income Tax

BizLeaders Asia - - Sg Taxation Singapore Tax System -

Key Facts

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.

Newspapers in English

Newspapers from Hong Kong

© PressReader. All rights reserved.