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Corporate Income Tax

Currently, both resident and non-resident companies are taxed at a flat rate of 17%. However, the first S$200,000 of the normal chargeable income is partially exempt from tax as follows:

On the first S$10,000 of such income, 75% of the income will be exempt from tax.
On the next S$190,000 of such income, 50% of the income will be exempt from tax.

For new start-up companies, tax exemption will be granted on the first S$200,000 of a qualifying company’s normal chargeable income for any of its first three consecutive Years of Assessment (YAs), as follows:

On the first S$100,000 of such income, 100% of the income will be exempt from tax.
On the next S$100,000 of such income, 50% of the income will be exempt from tax.

A “qualifying company” means a company incorporated in Singapore which for each of the first three years of assessment is resident in Singapore for that YA; and has its total share capital beneficially held directly by no more than 20 shareholders

All of whom are individuals throughout the basis period for that YA, or
At least one of whom is an individual shareholder holding at least 10% of the total number of issued ordinary shares of the company throughout the basis period for that YA.

In the case of a company limited by guarantee:

all of its members must be individuals throughout the basis period for that YA, or
at least one of its member is an individual throughout the basis period for that YA, and the contribution of that individual under the Memorandum of Association of the company to the assets of the company in the event of its being wound up, amounts to at least 10% of the total contributions of the members of the company throughout the basis period for that YA.

Personal Tax

An individual’s liability to Singapore income tax arises when such income accrues in or is derived from Singapore or where he receives such income in Singapore from outside Singapore during the basis period for a year of assessment. However, all foreign sourced income received in Singapore by resident and non-resident individuals will be exempt from tax.

As long as the foreign individual is employed or physically present in Singapore for 183 days or more during the basis period, he will be considered as a resident in Singapore. A resident individual will be subject to tax at a progressive rates ranging from 0% on first $20,000 of his taxable income to 24% on his taxable income exceeding $1,000,000.

Goods and Services Tax

Generally, GST is a tax on:-

The supply of goods and services made in Singapore by a taxable person in the course or furtherance of any business carried on by him; and
The importation of goods into Singapore.

Registration of GST

Generally, a person who made taxable supplies will be liable to be registered for GST if:-

At the end of any quarter where the total value of all his taxable supplies made in Singapore in that quarter and the 3 quarters immediately preceding that quarter has exceeded S$1 million; or
At any time, if there are reasonable grounds for believing that the total value of his taxable supplies in the period of 12 months then beginning will exceed S$1 million.

A taxpayer must give notification to the Comptroller of GST within 30 days of liability to register.

View the 2024 Singapore Budget Highlights for the latest tax updates

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