Singapore |
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| Income Tax Rate | 0% - 20% | | Corporate Tax Rate | 17% | | Sales Tax / Service Rate | 7% |
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Personal Income Tax |
| Individual income tax rates are progressive rate between 5% - 30% as shown below: |
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| Taxable Income (SGD) | Tax rate | | SGD 0 – 20,000 | 0% | | SGD 20,000 – 30,000 | 3.5% | | SGD 30,000 – 40,000 | 5.5% | | SGD 40,000 – 80,000 | 8.5% | | SGD 80,000 – 160,000 | 14% | | SGD 160,000 – 320,000 | 17% | | SGD 320,000 and above | 20% |
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| A non-resident individual (other than a director and actor) who exercises a short term employment in Singapore for not more than 60 days shall be exempt for tax in Singapore. However, individual resided in Singapore for not more than 60-183 days shall be taxed at a 15% tax rate. |
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Corporate Tax Rate |
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| The standard corporate tax rate in Singapore is 17%. A partial tax exemption is eligible for first SGD 300,000 of chargeable income. Under this condition, 75% of the first SGD 10,000 of chargeable income is tax exempt and 50% of the next SGD 290,000 of chargeable income is tax exempt. |
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| Chargeable Income | Exemption | Exempt amount | | First SGD 10,000 | 75% | SGD 7,500 | | Next SGD 290,000 | 50% | SGD 145,000 | | Total SGD 300,000 | | SGD 152,500 |
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Value Added Tax/ Service Rate |
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| The value added tax system in Singapore is called Goods and Services Tax: GST. The standard GST rate in Singapore is 7%. GST aims at taxing the final consumer goods and services made in Singapore, and importation of goods into Singapore. However, where the goods are dutiable, specific tax rates shall be applied. GST rates for dutiable goods is calculated based on Cost, Insurance and Freight (CIF) or the value of the last selling price (LSP), if there has been more than one sale, plus all duties and other charges. In the case of non-dutiable goods, Singaporean governmen |
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Withholding Tax |
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| Types of taxable income | Tax rate(For non-resident) | | Interest | 15% | | Royalty | 10% | | Technical fee | 17% |
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| Singapore does not levy withholding tax on dividend and there is no Capital Gains Tax. |
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Tax Incentives for SMEs |
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Partial Tax exemption |
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Full Tax exemption |
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| The full tax exemption for newly established companies was introduced in 2005 to widen
SMEs every opportunity to thrive and succeed. Under this condition, new start-up companies
are granted tax exemption on the first SGD 100,000 of their chargeable income derived in
each of their first three years of operation that fall within 2005 to 2009. |
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| The 2009 expiry date was removed in the recent 2007 Budget to enable all new companies to
apply a full three years of tax exemption. In addition, effective from 2008, a further 50%
exemption will be given on the next SGD200,000 of chargeable income derived by new
companies. |
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Carry back relief system |
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| The carry-back relief system was implemented in 2006 as a means to provide more timely
relief for SMEs to be able to cope with cash-flow problems, especially in a cyclical
downturn. With this scheme, loss making companies shall be able to claim back some of the
taxes paid in the preceding year if losses are incurred in the current year. |
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