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Rikvin Says Full Corporate Tax Exemption For New Singapore Company Incorporation Singapore is a global investment hub. Designed to attract business investors, the government implements tax exemptions to newly incorporated companies and tax incentives to certain types of businesses registered. In a brief encounter with Rikvin, its representative specifies that “for 3 years from the time of its registration with ACRA, companies earning their first revenue of S$100,000 shall be exempted from taxes. The next S$200,000 accrued revenues, the tax is cut by 50%.” Nonetheless, not all new companies are treated with similar tax exemptions. Rikvin continues, “to qualify, companies must not consist of more than 20 shareholders and who shall be natural persons throughout the 3-year period of assessment.” Needless to say, since the tax exemptions are granted by government in Singapore, the companies should also be incorporated in the city-state and become a resident company. A resident company refers to any business organization with its management team in Singapore. Also, there shall be one shareholder who possesses at least 10% of the company shares. Resident companies are eligible to avail the benefits of the Avoidance of Double Taxation Agreements that Singapore has maintained with several countries.. After the 3-year tax exemption period, the government maintains low taxation system for corporate. “For company profits of S$10,000 the tax rate is 4.25%, from S$10,001 to S$300,000, the income is taxed by 8.5%, and 17% is levied upon company profits above S$300,000.” Since January 2003, Singapore enacted a single-tier income tax system. The taxes apply only once to revenues earned in Singapore and foreign-sourced income remitted to Singapore. Hence, after deduction of due corporate taxes, the dividends distributed among shareholders are free from withholding or dividends taxes. Capital gains are not honored in Singapore. So, sale from fixed assets and foreign exchange on capital transactions are not taxed with capital gains. Apart from tax exemptions, Singapore grants tax incentives to specific industry, special purpose income tax incentives and concessionary tax rates based on the Singapore Income Tax Act. “The tax incentives for financial services industry, for example, include trading and fee income,” Rikvin resumes its explanation. For fund management industry, Singapore gives tax exemptions for offshore and onshore funds, concessionary tax rate for fund managers, and enhanced tier fund management scheme. There are corresponding tax incentives provided for global trading companies, shipping and maritime industry, event organizers, e-commerce industry, approved ventures, and insurance companies. The same principle is applied to industry such as operational headquarters, processing services, renovation, trade promotions, legal firms, and innovation-focused activities. Singapore advocates innovation. It believes that to be consistent in its reputation, it must continually address challenges that characterize development and time modernity. Rikvin supports such goal of Singapore through the services it personalizes for clients wishing to register a company in Singapore.


About the Publisher: Rikvin provides corporate solutions to investors and entrepreneurs in the local and abroad. Among its specializations are Singapore company registration and business firm and providing professional services relating to finances and administrative. Rikvin specializes in processing working visas and providing services such as nominee director, nominee shareholder, nominee agents, accounting, payroll, and secretarial. Since 1995, Rikvin serves hundreds of companies managing and rendering Singapore accounting service using sophisticated payroll software system to handle even the most complicated payroll account. In its payroll services, Rikvin assures its clients of confidence in dealing with every transaction. Its accountants maintain competence. Above all, Rikvin’s principles adhere to the laws and share the same vision such as the inevitability of innovation. Rikvin has successfully helped foreign and local entrepreneurs form a Singapore company. For more information, visit: http://www.rikvin.com/ 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Main Lines : (65) 6438 8887 Fax : (65) 6438 2436 Email : info@rikvin.com


Rikvin Says Full Corporate Tax Exemption For New Singapore Company Incorporation