Singapore company tax

Discussion in 'Accounting and Taxes' started by steve evans, Nov 27, 2009.

  1. steve evans

    steve evans
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    Hi there. Need advise on the corporate tax liability a start-up would face in Singapore. Hoping for a quick reply. Thanks in advance for your inputs.
     
  2. susanjain

    susanjain
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    Hi Steve,

    If it is start-ups we are talking about then the good news is that Singapore's Corporate Income Tax system has made provisions for tax incentives for newly set up companies.

    Under the tax incentive scheme, a newly incorporated company that satisfies the qualifying conditions (viz. be incorporated in Singapore, be a tax resident of Singapore and has no more than 20 shareholders of which at least one is an individual shareholder holding at least 10% of shares) will be taxed as follows:

    1. For each of its first three consecutive tax years - corporate tax rate of 0% on the first S$100,000 of taxable income and 9% (partial exemption) tax rate on the next S$200,000 of taxable income. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 18% (which will soon be 17% effective 2010).

    2. From the fourth tax year onwards - 9% tax rate on taxable income of upto S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 18% (which will soon be 17% effective 2010).

    Hope this info is useful to you.
     

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