Singapore operates a modified territorial basis of taxation.
Individuals and companies are taxed on income sourced in Singapore. Companies are taxed on income received in Singapore if it is sourced outside Singapore, except if certain prescribed conditions for exemption are met.
The tax year, known as the year of assessment (YA), runs from 1 January to 31 December. The period for which the profits are identified for assessment is called the basis year. The basis year is generally the year preceding the YA. Therefore, income earned during the 2022 basis year is assessed to tax in YA 2023.
Under the modified territorial basis of taxation, companies in Singapore are subject to tax on income accruing in or derived from Singapore and foreign income received or deemed received in Singapore from outside Singapore.
Withholding tax is generally a final tax where the income in question is not derived from the provision of services.
Contemporaneous transfer pricing document (TPD) is required from taxpayers if they meet any one of the conditions below:
Goods and Services Tax (GST) is the principal indirect tax in Singapore (akin to value-added tax in other countries).
Property tax is a tax levied on property ownership. The annual tax payable is a percentage of the annual value of the property, which is the gross amount for which the property is expected to be let out in that year.
Stamp duty is computed based on the consideration payable for the asset transferred or its market value, whichever is higher.
Individuals (resident and non-resident) are only liable to income tax in respect of income accruing in or derived from Singapore.
0% to 24% following a progressive tax rate stucture.
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