Tax Facts Overview
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 Inland Revenue Authority of Singapore (IRAS) is the governing body for the administration and collection of tax.
Basis of assessment
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 2024 basis year is assessed to tax in YA 2025.
Corporate income tax
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.
Rate
17%
ECI filing deadline
Within 3 months after financial year end
Tax return/computation/ (un)audited accounts deadline
30 November
Payment due date
Within 30 days from date of notice of assessment
Withholding tax
Withholding tax is generally a final tax where the income in question is not derived from the provision of services.
Filing and payment deadline
By 15th of the second month, following the date of payment to the non-resident
Range of tax rates
Up to 24%, depending on the nature of income (may be reduced under tax incentives or Tax Treaties)
Transfer pricing
All related party transactions must be conducted at arm’s length, regardless of the transaction value; and comply with the transfer pricing rules and documentation requirements.
Taxpayers are to prepare and keep contemporaneous transfer pricing documentation if they meet any one of the conditions below:
- Gross revenue is greater than SGD 10 million for the basis period concerned; or
- Transfer pricing was required to be prepared for the previous basis period
Documentation should be completed by the filing due date of Income Tax Return.
Goods and services tax
Goods and Services Tax (GST) is the principal indirect tax in Singapore (akin to value-added tax (VAT) in other countries). It is a broad-based consumption tax and is levied on almost all supplies or goods and services in Singapore as well as imports into Singapore.
Rate
9%
Registration threshold
SGD 1 million
Filing and payment deadline
1 month after end of prescribed accounting period (usually quarterly with an option for monthly basis)
Property tax and duties
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.
Personal income tax
Individuals (residents and non-resident), whether citizens or noncitizens, are liable to income tax in respect of income accruing in or derived from Singapore.
For a partner in a partnership in Singapore, foreign sourced income can be exempt from tax if certain conditions are met. Other foreign sourced income received by an individual in Singapore from outside the country is exempt from tax.
Taxable income includes:
- profits from trade, business or profession
- earnings from employment in Singapore
- dividends, interest or discounts
- pensions, charges or annuities
- rent, royalties, premiums and other profits arising from property
- any gains or profits of an income nature not covered by the above.
Subscribe for timely technical updates and keep on the pulse with industry developments