TAXATION IN SINGAPORE

PRESENTED BY:ANKUR TAGRA PGDFM/11/010

TAXES PAYABLE IN SINGAPORE
1. Income Tax 2. Goods and Services Tax 3. Property Tax 4. Stamp Duties 5. Customs and Excise Duties.

* For deaths occurring before or on 15 February 2008.

ANKUR TAGRA

(PGDFM/11/010)

2

INCOME TAX  Singapore essentially adopts a “territorial” tax system. or b. ANKUR TAGRA (PGDFM/11/010) 3  . received in Singapore from outside Singapore and falls in one of the heads of charge. income is taxable in Singapore if it is:a. accrued in or derived from Singapore. Generally.

business. charge or annuity  Rent royalties. accommodation allowance and car)  Dividends. premiums and any other profits arising from property  Any gain or profits of an income nature ANKUR TAGRA (PGDFM/11/010) 4 .HEADS OF CHARGE  Gains or profits from any trade. profession or vocation  Employment income (including stock options.  Pension. interests or discount.

YEAR OF ASSESSMENT  Singapore adopts a preceding year basis of assessment. Tax for any given year of assessment is paid on the income earned: ◦ for individuals: in the preceding calendar ◦ for companies: in the financial year ending in the year preceding that year of assessment  ANKUR TAGRA (PGDFM/11/010) 5 .

TAXATION OF INDIVIDUALS  Different tax rates and tax treatment apply to tax resident and non-tax resident.  ANKUR TAGRA (PGDFM/11/010) 6 . Who are tax residents ? ◦ Singapore citizens ◦ Permanent residents who established Singapore to be their permanent home ◦ Foreigners who stayed or worked in Singapore for more than 183 days in the calendar year.

Donations** 3. Expenses* 2. ** Donations must be a approved charity or a registered grant-making philanthropic organisation.TAX TREATMENT Tax Resident Non. Tax treaty between Singapore and another country * Yes Yes Yes Yes Yes Yes No No Expenses must be wholly and exclusive incurred in the production of income and not specifically prohibited. Personal Reliefs 4.Tax Resident 1. ANKUR TAGRA (PGDFM/11/010) 7 .

consultation fees and all other income: 20% ANKUR TAGRA (PGDFM/11/010) 8 .TAX RATES  Tax residents ◦ Taxed at a progressive tax rate ◦ First $20.5% to 20% with effect from YA 2010  Non-Tax residents ◦ Employees : 15% ◦ Director’s fees.000 at 0% and subsequent amounts at marginal tax rate ranging from 3.

ANKUR TAGRA (PGDFM/11/010) 9 . the tax bill is deemed final and conclusive.TAX FILING AND TAX PAYMENT  2 modes of tax filing are available:◦ E-Filing (Deadline: 18 April of every year) ◦ Paper Tax Return (Deadline: 15 April of every year)  Payment ◦ Tax (estimate) must be paid within 30 days of the tax bill even if an objection is lodged. ◦ If no objection is lodged within 30 days of the tax bill.

ANKUR TAGRA (PGDFM/11/010) 10 - .GOODS AND SERVICES TAX  Goods and Services Tax (“GST”): - was first introduced on 1 April 1994 is similar to value added tax in other countries is essentially a consumption tax that is levied on the supply of goods and services in Singapore and the import of goods.

the taxable supply was made in the course or furtherance of a business carried on by the taxable person.SCOPE OF GOODS AND SERVICES TAX  GST is chargeable on any supply of goods or services made in Singapore if: . and . ANKUR TAGRA (PGDFM/11/010) 11 .the taxable supply was made by a taxable person. .it is a taxable supply.

of services in  A person who belongs in Singapore has to account for GST if a person who belongs outside Singapore supplies a service to him. ANKUR TAGRA (PGDFM/11/010) 12 .IMPORT OF SERVICES  Generally. the importation Singapore is subject to GST.

services supplied to persons and business abroad. International services broadly includes.: services connected to international transportation. ANKUR TAGRA (PGDFM/11/010) 13  . and international telecommunication services. inter alia.EXPORT OF SERVICES  Where a person supplies an international service to a person who belong outside Singapore. services connected with offshore goods. such service is zero-rated.

chattels and industrial plant and machinery used for the manufacture of goods.PROPERTY TAX  A tax on immovable properties including all houses. buildings and tenements but excluding inter alia. land. ANKUR TAGRA (PGDFM/11/010) 14 .

PROPERTY TAX RATES  Current Tax Rate: 4% per annum of one owner-occupied residential property’s annual value 10% per annum of a property’s annual value ANKUR TAGRA (PGDFM/11/010) 15 .

STAMP DUTIES  A tax imposed on certain legal and commercial instruments.  ANKUR TAGRA (PGDFM/11/010) 16 . The main categories of instruments currently liable to tax are sale or any disposal (including gifts) of immoveable property and shares. and in the case of immoveable property only. lease or tenancy and mortgage.

and within 30 days of receipt in Singapore if executed outside Singapore. ANKUR TAGRA (PGDFM/11/010) 17 .STAMP DUTIES  All instruments executed in Singapore should be stamped before execution under section 42. all instruments are allowed to be stamped within 14 days of execution if executed in Singapore. but for administrative convenience.

STAMP DUTIES RATE  The rates of duties on the various types of instruments range from a fixed amount of $10 on an instrument of partition to ad valorem rates depending on the amount or value of the consideration paid in a sale and purchase agreement. ANKUR TAGRA (PGDFM/11/010) 18 .

CUSTOMS AND EXCISE DUTIES  Goods imported into or manufactured in Singapore are subjected to custom and/or excise duties. Four broad categories of dutiable goods in Singapore:  (a) intoxicating liquors. ANKUR TAGRA (PGDFM/11/010) 19 . and (d) petroleum products. (c) motor vehicles. (b) tobacco products.

THANK YOU ANKUR TAGRA (PGDFM/11/010) 20 .

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