A Brief Discussion On Singapore Corporate Tax By Rikvin

A Brief Discussion On Singapore Corporate Tax By Rikvin

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One of Asias rapidly growing business hub is Singapore. Furthermore, Singapore is favourably located at the centre of the expanding Asia economy. Thus, great benefits are enjoyed by businesses in Singapore from its productive ties with the other tiger economies while at the same time maintaining the name of a reputable and trustworthy jurisdiction. Singapore's corporate tax policy further enhances it as an ideal location for company incorporation by implementing fair and competitive tax rates. By reason of all these, Singapore has taken the forefront as a globally recognized business nation over the past decade.

One better way to understand why Singapore is becoming popular with entrepreneurs is by taking a look at Singapore's corporate tax policy.

Corporate Tax in Singapore

In Singapore, foreign and local companies pay tax equally. Though this may sound unfavourable at first glance, but in the long run, Singapore favours its own businesses as it does offshore companies, thus the entrepreneurial culture that exists within Singapore.

All income sourced in Singapore or remitted into Singapore by Singapore companies are taxed. This means that a Singapore incorporated company that does most of its business with other Asian countries and receives its income overseas, is legally not liable to tax in Singapore. Business transactions are often more complicated and for that reason it is recommended to seek assistance from a professional services firm that is experienced in Singapore tax policy, in order to ensure compliance with the law.

The general corporate tax rates that apply in Singapore are as follows. - It should be noted, however, that substantial tax benefits exist for entrepreneurs and start-ups that will be explained later in the article.

A reduction of Singapore's corporate tax rate from18% to 17% was made in 2010. Depending ont he amount of income received, the tax is charged in blocks. The first S$10,000 of income is taxed at a small rate of 4.5%. Subsequently, an 8.5% tax rate is charged on the S$290,000 of profits and a 17% tax rate will be charged on all income thereafter. Thus, a mere S$360 will be charged on a small company that makes S$8,000 in 2010. For a medium sized company that makes S$250,000 in 2010, a total of S$20,850 of tax will be charged, which is an effective rate of 8.34%. An effective rate of 14.41% or a total of S$144,100 will be charged on a larger company making S$1 million in 2010.

About the Author:
Since 1998, Rikvin consultancy has been providing highly professional Singapore Corporate Tax, both in attractive standard packages as well as customised services. Online incorporation being a hallmark service, other services of Rikvin include Singapore Sole Proprietor Setup, Singapore Subsidiary Registration, Offshore Incorporation, EntrePass, Singapore Employment Pass, Personalised work Pass application, GST Registration, Company Incorporation, Tax Planning & Consulting, and Business Plan Drafting.



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