Date de publication : 06-10-1907
The following information are for the sole purpose of providing a general overview of the local taxation of the Corporate tax aspects of the country. In any case, it can not replace a tax advice, or be considered as an official information.
Yes we tax in Singapore
New tax reform: No specific information
New tax treaties:
- Tax treaty between Singapore and Uruguay enters into force
Local tax advisors
No specific information on the local tax advisors.
Local tax administration
Website Tax administration: Click here
The definition of Permanent Establishment follows the wording of article 5 of the OECD Model:
- Dependent agent who habitually concludes contracts in the name of a non-resident company (except if the activity is limited to purchase of goods);
- Fixed place of business, building site, construction, assembly or installation and any related supervisory activity.
Entities are considered to be resident for tax purposes in Singapore if their place of management & control is in Singapore.
Note: the definitions of permanent establishment and place of residence are subject to the relevant provisions of any applicable double tax treaty, if any.
Corporate Income Tax
The general CIT tax rate is 17%.
Non-taxable income includes the following:
- Dividends received from qualifying participations
- « Offshore interest »: Interest accrued by a Singaporean company are not considered as taxable income for CIT purposess if they are paid on a foreign bank account. However, for transfer pricing reasons the rate of shareholder loans should always be arm’s lenght (even if interest are paid on a foreign bank account). If the rate is not arm’s lenght, the difference between the rate which have been applied and the arm’s lenght rate is taxable in Singapore.
Non-deductible expenses includes the following:
- Dividends benefiting from the participation exemption
Carry forward : Yes indefinitely, but some restrictions may apply.
Carry back: Yes, but some restrictions may apply (maximum amount 100kSGD/year).
Companies should submit the tax return annually before the 30 November of the current year.
Annual tax returns are established under an official system of assessment.
Whithholding Taxes (payment to foreign companies)
The local tax rates in Singapore are the following, subject to the provisions of an applicable double tax treaty, if any.
There is a 17% WHT on the profits paid from a branch to its foreign head office.
The general rate of WHT on dividends is 0%.
The general rate of WHT on interest is 15%.
The general rate of WHT on Royalties is 10%.
The general rate of WHT on management fees is 17%.
The general rate of WHT on technical services is 17%.
Generally, there is no tax on capital gains.
Standard GST tax rate is 7%
Zero-rated supplies include, subject to certain conditions:
- exports of goods;
Exempt supplies include, subject to certain conditions:
- Supply of goods and services by exempted person;
- Certain financial services
Note: exempt transactions differ from zero-rated transactions in that the input GST associated with exempt transactions is not deductible.
In case where for a tax period, Input GST exceeds Output GST, certain non-resident companies (which are not required to register and incur Singapore-GST in the course of their business activities in Singapore) may apply for a refund under the same conditions than resident companies.
No other specific information of GST in Singapore.
The general statute of limitation is 4 years starting at the end of the year in which the tax return had to be filed.
The statute of limitation could be extended indefinitely for negligent tax fraud and for wilful tax fraud.
There is no foreign exchange control in Singapore. Income and capital could be freely repatriated.
There are no thin capitalization rules in Singapore.
Do not hesitate to share your experience in Singapore with us in the comments below. Any comments are welcome !