Rikvin Explains Singapore Corporate Tax Details
A Company that have a complete benefits that help foreign and local entrepreneurs setting their own business in Singapore.
by Cyber Freack Monday, November 29, 2010
The administration of income tax system is handled by the Inland Revenue Authority of Singapore [IRAS] with the Comptroller of Income Tax as the director.
In Singapore, the tax system is territorial, which means that residents and non-residents are taxed on income accumulated in Singapore.
More in-depth details on corporate tax in Singapore are elaborated by an accountant of Rikvin, a company constituted in 1995 in the service of business investors.
“The Singapore corporate tax follows a single tier pattern. The income tax charged on the taxable level is deemed final and the company’s shareholders are not taxed on their dividends.”
Taxes on withholding on dividends and capital gains are non-existent in Singapore.
Rikvin adds that the overall company tax rate is charged at a flat rate of 17% for earnings accrued at the amount more than S$300,001.
On the fourth year of assessment, companies earning up to S$300,000 are charged with a corporate tax of 8.5%. Nonetheless, from first year of assessment to its third year, the government of Singapore provides tax exemptions to newly incorporated companies.
“Corporate companies are not taxed on their first accumulated income amounting to S$100,000. On the next S$200,000, the tax rate is discounted by 50%,” Rikvin’s accountant continues the elaboration.
To qualify for such exemption, there are conditions that must be satisfied. Among these are having at least one shareholder possessing a minimum of 10% shareholding, all shareholders are natural living persons from its first year of assessment onwards, the company has a maximum of 20 shareholders, and the company must be incorporated in Singapore and deemed as a tax resident.
Nevertheless, for some companies that cannot meet the requirements, the government of Singapore still offers tax incentives with the objective of encouraging entrepreneurial growth among existing companies. Rikvin elucidates on this.
“Companies are taxed at 4.5% for their first S$10,000 profits and earnings from S$10,001 to S$300,000 are taxed at 8.5%.”
Also, depending on which industry the companies belong, there are tax incentives granted to them in the form of reduced corporate tax rates.
At any rate, the government through its tax-administering arm, continues to make amendments on taxation policy for a more business-conducive Singapore.
About the Publisher:
Rikvin, for many years has been helping entrepreneurs in the local and abroad to handle the company registration services in Singapore in their behalf, unless the investors themselves are eligible to initiate the registration.
Among other services, Rikvin specializes in Singapore Company Registrar, Singapore Gst Services, registration of a new company, accounting and secretarial services as well as compliance with statutory requirements like nominating a resident director.
For more information, visit:
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email : firstname.lastname@example.org
Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.
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