Also called “The Switzerland of Asia”, it is one of the most economically and socially developed countries in the world. Over the past decade, Singapore has been the only country in Asia to which all major credit rating agencies, including S&P, Moody’s and Fitch, have awarded the highest sovereign AAA rating.
Singapore’s tax system is territorial. The corporate income tax is paid at a rate of 17% on:
- The revenue accrued in or derived from Singapore;
- The income of foreign origin as long as it is received in Singapore.
Resident and non-resident companies are subject to the payment of taxes on accrued or derived income from Singapore and foreign income remitted or considered remitted to Singapore, including profits from a trade or business; dividends, interest or discounts; charges or annuities; rents, royalties, premiums and other benefits derived from the property; and earnings of nature of income that do not fall into the previous categories.
Remittances of foreign income in the form of dividends, branch benefits, and services to resident companies are tax exempt, provided that the income is received from a foreign jurisdiction with a general tax rate of at least 15% at the time it is received or considers the income received in Singapore and the income has been taxed in the foreign jurisdiction. Foreign income that has been exempt from taxes in the foreign jurisdiction as a direct result of a tax incentive granted for substantial commercial operations carried out in that jurisdiction shall be deemed to have complied with the “taxable” test.
Several government agencies administer tax incentives to eligible taxpayers for a tax exemption on their qualified income. Some of the examples are listed below:
- Financial Sector Incentive: Companies dedicated to qualification activities in the provision of financial services
- Foreign trusts and foreign accounts of charities
For foreign investors looking to locate their manufacturing operations or service performance in Singapore
There is currently no capital gains tax in Singapore. Whether a profit is classified as income or capital gain will be determined on a case-by-case basis and will depend on different factors.
DOUBLE TAX TREATIES
Singapore has an extensive investment protection agreement and a network of treaties to avoid double taxation. This includes most countries in the Asia-Pacific region, Europe, Africa, and the Middle East. Singapore is also one of the few countries to have a tax treaty with Taiwan.
The current international view of Singapore by International Organizations.
|International Organization||White List||Grey List||Black List|
Company registration US$1,300.00
Corporate secretary (Mandatory) US$1,000.00
Nominee director (Mandatory if you cannot provide a local director) US$5,000.00
Security deposit for providing the nominee director (refundable) US$4,500.00
- Preparation of Standard Incorporation Documents (Form 24, 44, 45, 45B and 49)
- Memorandum and Articles of Association of the company
- First Company’s Resolution
- Electronic Certificate of Incorporation
- Company Biz Profile Extract from the Registrar of Companies
- Renewal of the company and secretarial services
- Verification the company complies with local legislation.
Apostille by document
|Notarization of documents (per doc)||Minimum US$100.00|
|Nominee director (annual)||US$5,000.00|
|Nominee shareholder (annual)||US$500.00|
|Certificate of incumbency||US$300.00|
|Certifications issued by the registry||from US$200.00|
|Change to another registered agent||from US$150.00|
|Resolutions after incorporation||Between $175.00 to US$450.00|