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- +65 66765644
- +65 96733894 (WHATSAPP / WECHAT）
- enquiry@msmc.com.sg
- #23-08 The High Street Centre, Singapore 179094
TAX PLANING
Advantage of Singapore Tax Regime
Singapore is a world-recognized center of finance, commerce, trade and innovation. Low tax rates and a large number of preferential tax policies are one of the important driving forces for commercial organizations and individuals from all over the world to come to Singapore for business activities. Reasonable tax planning is an important tool for optimizing corporate profit margins. Our professional tax consultants will formulate the best tax optimization plan based on the actual situation of enterprises and individuals.
SINGLE LAYER TAX
Complicated taxes are exempted. After Singapore companies pay income tax, shareholder dividends are exempt from personal tax
LOW TAX RATE
The corporate income tax is up to 17%, and the personal income tax is up to 22%. On this basis, there are tax deductions and exemptions.
VARIOUS TAX EXEMPTION
Foreign income, capital gains, inheritance or gifts, etc. are exempt from tax
DOUBLE TAX TREATY
There are bilateral tax treaties with major economies in the world to avoid double taxation
SINGAPORE MAJOR TAXES
CORPORATE TAX
Tax Rate
The taxable rate of Singapore tax companies is a flat rate of 17%.
Tax Incentive
– High tax relief for the first 3 fiscal years of the newly established company
– Expenses in the year before the company started earning taxable income can be tax deducted
– Group reduction and exemption, deduction of capital allowances applied to group company parts / trade losses / donations, etc.
– Use double taxation agreements between Singapore and other economies to account for overseas taxes paid to avoid double taxation
PERSONAL TAX
Tax Rate
Singapore tax residents pay a personal income tax of up to 22%.
For specific tax rates, please refer to the Inland Revenue Authority of Singapore Personal Tax Rate Table
Tax Incentive
Singapore’s personal tax has a wide range of tax deductions, including:
– Spouse reduction
– Children’s exemption
– Exemption for working mothers
– Provident fund payment relief
– Maid tax relief
Various personal tax reliefs have made Singapore one of the economies with the lowest personal tax.
GOODS AND SERVICES TAX
Definition
Consumption tax is a broad-based tax levied on all goods and services imported by the Singapore team on all goods and services in Singapore, or consumption tax can also be understood as a value-added tax.
Tax Rate
The prevailing tax rate is 8%.
GST Registration
All companies with annual revenues of more than S$1 million, or companies with estimated annual revenues of more than S$1 million, must register for GST. At the same time, the company can also apply for consumption tax voluntarily. Once approved, the company must maintain its registration for at least 2 years.
Tax Incentive
– Exported goods and services are classified as zero-rated supply, without consumption tax
– Residential rentals, financial services, imports and local supply of precious metal investments are exempt supplies and do not need to pay consumption tax
– For overseas transactions, goods entering Singapore are included in the supply outside the scope of consumption tax, and there is no need to pay consumption tax