In Singapore, its corporate income tax adopts a single-tier regional uniform tax rate corporate income tax system. There is no double taxation for stakeholders under the single-tier corporate income tax regime - no new tax is imposed on dividends paid by companies to their shareholders. Also, capital gains in Singapore are not taxed.

Our company tax package provides the following services:

Submit Form C/Form C-S and Appendix to the IRD. Overview of Form C/Form C-S for details and examples.

Prepare Tax Calculations. Prepare Tax Calculations for details and examples.

Tax planning. Personal income tax planning (additional fees will be imposed depending on the complexity of tax planning)

Report Estimated Taxable Income to the Inland Revenue Department. The definition of Estimated Taxable Income (ECI) and when to report it for details and examples.

Respond to questions from tax authorities (additional charges will apply depending on the complexity of the questions)

Timely reminders of relevant deadlines (by phone or email)

Advances on behalf of clients – Income tax ($107 processing fee, including GST)

Corporate tax rate:

Starting from the year of assessment 2010, Singapore companies, whether local or foreign, are taxed at a rate of 17% on their taxable income.

General tax benefits

While the corporate tax rate is flat at 17%, corporations have tax exemption programs that help companies reduce their overall effective corporate tax rate.

Tax Exemption Scheme for New Companies

Any eligible newly registered company (as described below) is entitled to an annual tax-exempt treatment tax assessment for the first three years of the newly incorporated company. Eligibility conditions are as follows:

Incorporated in Singapore

Residency Tax in Singapore

Have no more than 20 shareholders, at least one of which is an individual shareholder holding at least 10% of the common stock.

All new companies are exempt from taxation except for these two types of companies:

A company principally engaged in the business of investment holding; and a company engaged in the sale, investment, or investment and sale of real estate.

Before 2020

Taxable Income (S$) Effective Tax Rate

First $100,000 0%

Next $200,000 8.5%

17% thereafter

After 2020

Taxable Income (S$) Effective Tax Rate

First $100,000 4.25 %

Next $100,000 8.5%

17% thereafter

Partial tax exemption for companies

The company will be entitled to a partial tax exemption indefinitely during its 4th tax assessment year and all other companies.

Before 2020

Taxable Income (S$) Effective Tax Rate

First $10,000 4.25%

Next $290,000 8.5%

17% thereafter

After 2020

Taxable Income (S$) Effective Tax Rate

First $10,000 4.25%

Next $190,000 8.5%

17% thereafter

One-off Corporate Income Tax (CIT) Rebate

According to the Singapore Budget Announcement, every Singapore company is eligible for CIT rebate.

The following are the CIT rebates that can be claimed for each tax assessment year:

Year of Assessment (YA) CIT Rebate Cap (S$)

2019 20% $10,000

2018 40% $15,000

2017 50% $25,000

2016 50% $20,000

2013 to 2015 30% $30,000

Double taxation

The foreign source income of a Singapore tax resident company is taxed overseas and double taxation will occur when the income is remitted into Singapore. However, under the Foreign Tax Credit (FTC) scheme of the Inland Revenue Authority of Singapore (IRAS), a company can claim a credit for the same income, i.e. tax paid in a foreign country can be credited against tax payable in Singapore.

There are two types of credits or deductions:

Double Tax Relief (DTR) – Singapore has signed more than 20 Free Trade Agreements (FTAs), as well as 74 comprehensive and 8 limited Double Taxation Agreements (DTAs) to facilitate cross-border trade and enable of companies mitigate the cost of their overseas expansion. Hence, Double Tax Relief (DTR) is a relief provided by a Double Taxation Agreement (DTA) to offset a double taxation situation.

Unilateral Tax Credit (UTC) – Where there is no Double Taxation Agreement (DTA), Unilateral Tax Credit (UTC) is allowed if the income is remitted in the following circumstances:

Income from professional, consulting and other services

royalty income

dividend income

employment income

branch profit

Foreign Source Income Exemption for Businesses

Foreign income remitted into Singapore is taxable in Singapore. However, Sections 13(7A) to 13(11) of the Singapore Income Tax Act (ITA) state that companies can benefit from the Foreign Source Income Exemption Scheme (FSIE). (Please note that the foreign country's corporate tax rate must be at least 15% and the income has already been taxed in the foreign country for the exemption scheme to work.)

Foreign Source Income Category:

Dividends from overseas – Dividends from overseas. If paid by a non-Singapore tax resident company.

Profits from foreign branches – any profits generated by a Singapore company in a foreign registered branch. Not applicable to non-trade or non-business income of foreign branches.

iii. Service income from overseas – any income derived by a resident taxpayer from services rendered at a fixed place of operation overseas.

1. Bizfile (if it is booked through our company, no need to provide it)

2. The company's financial statements (if it is recorded through our company, it is not necessary to provide it)

3. Bank statement (if it is booked through our company, no need to provide it)