Singapore Corporate Income Tax

Corporate Tax Services Singapore

When it comes to tax planning, tax computation, optimization and tax filing, the business owners look for one of the competent corporate tax services Singapore. The task needs the complete understanding of the rules and regulations. Any halfhearted effort is not useful in completing the task. It is far better to hire expert Singapore corporate income tax consultants having industry specific experience to do it.

During the last couple of decades, Singapore has emerged as the hot destination for the entrepreneurs, corporate, and investors. The major part of the attraction to them is Singapore tax system. The country is known as one of the low tax jurisdictions in the world.

Singapore Tax System

Singapore corporate income tax is a single-tier tax, meaning, once the companies have paid their taxes they can distribute the dividend to their shareholders. In Singapore, the dividends are tax-free. No capital gain tax is charged on this type of income. It is no wonder that investors beeline to Singapore to invest their money.

Singapore Corporate Tax Rate

Most importantly, Singapore has adopted territorial-based tax system under which only the locally generated income is taxed. Singapore corporate tax rate ranges from 8.5% – 17% which acts as a great magnet to the business owners hailing from the places that charge higher tax rates.

Tax Exemption Scheme for New Start-up Companies

Singapore start-up ecosystem is a success story. It is one of the reasons why budding entrepreneurs choose to register Singapore company. The country offers various tax incentives and rebates to the start-ups as well as existing companies. It drastically reduces their effective Singapore corporate income tax amount.

Singapore encourages new start-ups by offering tax exemption scheme. They get full corporate income tax exemption on their taxable net income of up to S$100,000 for the first three years. Next S$200,000, receives 50% tax exemption (subject to certain conditions).

Qualifying Criterion for the Start-ups

  • The company must be registered in Singapore
  • During the YA, the company must be a tax resident in Singapore
  • The company must have 20 or fewer shareholders. All the shareholders must be individuals or at least one of them must hold minimum of 10% of the issued ordinary shares of the company

Companies that Does Not Benefit Under this Scheme

  • Companies whose main activity is that of investment holding
  • Companies whose main activity is that of developing the properties for sale and/ or investment.

Partial Tax Exemption for Companies

The existing Singapore companies qualify for the partial tax exemption. Under the scheme they get,

  • 75% of exemption on their first S$10,000 of taxable net income; and
  • 50% of exemption on their next S$290,000 of taxable net income

The total amount exempted from the Singapore corporate income tax comes to S$152,500.

Assistance for Filing Singapore Corporate Income Tax

Do you need assistance for filing your Singapore corporate income tax?

We assist our clients in honoring Singapore corporate income tax filing due dates. Each year they need to file their tax by November 30 (paper-filing) or December 15 (e-filing).

We, on their behalf, submit Estimated Chargeable Income (ECI) form, Corporate Income Tax Returns (Form C-S or Form C), audited/unaudited accounts, & company tax computation with IRAS (Inland Revenue Authority of Singapore). The tax consultants in our employ, also offer FREE tax advice & consultation services. They take charge of the task and work to minimize client’s tax liabilities and maximize the tax incentives.

Our Cost-effective Fees

For NIL ECI if the company is dormant S$100 Per Filing
For ECI – low volume transactions S$200 Per Filing
For ECI -for medium volume transactions S$350 Per Filing
For ECI -for high volume transactions S$450 Per Filing
For Form C (depends on volume of transactions) S$300-S$1050 Per Filing
For Form C-S (depends on volume of transactions) S$300-S$750 Per Filing
For PIC claims S$450-S$2000 Per Filing
For withholding tax filing (each form basis) S$250 Per Filing