Tax Code in Singapore

Updated on September 23,2016
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Tax Code in Singapore
Introduced in the country in 1947, the tax code in Singapore represents a heritage from the rule of the British Empire, being modelled after the Model Colonial Territories Income Tax Ordinance of 1922. As years went by, the tax policy in Singapore adapted to the global developments, the tax code in Singapore being continuously refined and developed. 

Currently, the tax code in Singapore is ruled by the Income Tax Act (ITA), the Economic Expansion Incentives Act (EEIA), the Goods and Services Tax (GST) Act and the Stamp Duties Act.

Main taxes in Singapore

The main taxes of the taxation code in Singapore are as follows:

•    Income tax;
•    Real estate tax;
•    Motor vehicle tax;
•    Customs and excise duty;
•    Goods and Services Tax (GST);
•    Betting and casino taxes.

The income tax in Singapore is subdivided into the corporate income tax, applicable for businesses, and personal income tax, for private persons.

Corporate income tax in Singapore

The corporate income tax in Singapore is due yearly. According to the Inland Revenue Authority of Singapore (IRAS) the rate for corporate income in this country is levied at a flat rate of 17%, no matter if the company is local or foreign.

The income gained from foreign activities by a Singapore company can require dual taxation, under certain circumstances. These companies may claim a Foreign Tax Credit (FTC) due on the same income. An accounting expert in Singapore can provide more details on this matter.

Personal income tax in Singapore

The personal income tax in Singapore, just like the corporate tax income, is due on a yearly basis. Its rates are progressive, applicable for both local and tax residents, with taxes which range from 0% to 20% since Year of Assessment 2007. 

The personal income tax code in Singapore is founded on the source principle, under which sole income earned in the source, namely in Singapore, or those received from abroad however brought into the country, are being taxed. 

Our accountants in Singapore can assist you with the procedure of paying taxes in the city-state. For more detailed information regarding the tax code in this country, as well as the appropriate taxations and compliancy, we invite you to get in touch with our accounting firm in Singapore.