Singapore’s Tax Policy - EIA Family Office Pte. Ltd. – Family Office Consulting

EIA Family Office Pte. Ltd.

EIA Family Office Pte. Ltd.Family Office Consulting

Singapore’s Tax Policy

Singapore, one of the Four Asian Tigers, being with “the most internationalized” workforces in the world and rated the top 3 best country to live in every year. Singapore’s robust regulatory system continues to make it attractive to investors, especially in times of economic and political instability in the rest of the world. This is also one of the facts that makes Singapore very appealing for foreign entrepreneurs and attracting UHNWI to setting up family offices and family trust. 
Singapore is one of the world’s technological and financial centres, along with being a cultural centre for Asia.
In the recently released 26th edition of the Global Financial Centres Index (GFCI), Singapore has consistently ranked among the world’s top five economies in terms of ease of doing business. Among them, Singapore’s tax policy is one of the most attractive features.
  • Corporate Income Tax

    A company is either a tax resident or a non-resident of Singapore. In Singapore, the tax residency of a company is determined by the place in which the business is controlled and managed. The residency status of a company may change from year to year.
    Some benefits tax resident companies enjoy include:
    ● A Singapore tax resident company is entitled to benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.
    ● Tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income.
    ● Tax exemption for new startup companies. (where any YA of the first 3 YAs falls in or after YA 2020)
  • Stamp Duty

    Stamp duty refers to the tax on documents relating to the purchase or lease of a property. Virtually all residential property transactions — including buying, selling and renting property. Dutiable documents relating to share transfers include 
    You are required to stamp a document before you sign it. However, if you have signed a document and stamped it within the following time frame, no penalty will be charged: 
    Within 14 days after signing the document if it is signed in Singapore or
    Within 30 days after receiving* the document in Singapore if the document is signed overseas
  • Personal Income Tax, PIT

    You will be regarded as a tax resident if you:
    a. Stay or work in Singapore
        i. for at least 183 days in a calendar year; or
        ii. continuously for three consecutive years; or
    b. Work in Singapore for a continuous period straddling two calendar years and your total period of stay* is at least 183 days.
    Other than that, you will be regarded as a non-resident.

    Individuals are taxed only on the income earned in Singapore. The income earned by individuals while working overseas is not subject to taxation barring a few exceptions. Individuals can start on the way of legally reduce their personal income tax by Working mother child relief、Life insurance fee and CPF contributions.
    If you are a non-resident and exercised employment in Singapore for 60 days or less in a year, your short-term employment income is exempt from tax. This rule does not apply if you are a director of a company, a public entertainer or a professional in Singapore. Professionals include foreign experts, foreign speakers, queen's counsels, consultants, trainers, coaches, etc. Your employment income will be taxed at a flat rate of 15% or the progressive resident rates, whichever results in a higher tax amount.
  • Goods and Services Tax, GST

    Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.
    The GST that you incur on business purchases and expenses (including import of goods) is known as input tax. If your business satisfies the conditions for claiming input tax, you can claim the input tax on your business purchases and expenses.
    If your business exceeds $1 million in taxable turnover, you will register for GST.
    The GST that you incur on business purchases and expenses (including import of goods) is known as input tax. If your business satisfies the conditions for claiming input tax, you can claim the input tax on your business purchases and expenses.
    The current Singaporean GST rate is 7% since July in 2007.GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated.
  • Property tax

    Property tax is assessed on real estate property and is paid by the owner. It is computed as a percentage of the annual value of all houses, land, buildings and tenements. The law makes a distinction between tax on residential land, properties that are Owner Occupied, commercial properties, and rented out properties. 
    Currently Owner-Occupier Tax Rates is 4%,Non-owner-occupier Residential Tax Rates is 10%.