Singapore Corporate Taxation Tax is one of the major considerations when choosing an area for business. Entrepreneurs would normally invest on countries where there are reasonable tax rates. Today, Singaporeâ€™s attractive tax benefits have attracted a lot of entrepreneurs to consider Singapore as one of their investment locations. Preferable taxes are outlined both to local and foreign entrepreneurs. Below are some of the tax benefits given to a Singapore company: 1. Full tax exemption is granted on the first $100,000 of Chargeable Income for qualifying new companies for the first three years of assessment consecutively 2. Reduced corporate tax rates for selected industries including Offshore Leasing, Oil Trader, Securities Company, Arts and Antique Dealers, Insurance and Re-insurance Co., Cyber Trader, Trustee Company, Commodity Derivatives Trader and Asian Currency Unit. 3. No tax for capital gain. 4. Low stamp duty tax for property transfer in Singapore. 5. 7%General sales tax These benefits are only made available to tax residents. A company is considered as resident in Singapore if the control and management of the business is exercised in Singapore. Although the term "control and management" is not defined explicitly by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of Board of Directors and not the day-to-day decision making and operations. Apart from these benefits, the government of Singapore also continues to remind companies that it is mandatory by law to file for the annual tax return, to comply with the statutory requirements stipulated in the Singapore Companies Act, and to submit annual filing requirements to Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). It is imperative for all companies to stay in compliance with the statutory regulations to avoid penalties and quite possibly, legal repercussions. If you need a more thorough explanation on corporate tax benefits, you can contact Rikvin, Singaporeâ€™s leading corporate solutions specialist.
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