1ax Structure of S|ngapore

resented by
An|sh Goenka 10I8011
Am|t kumar Agarwa| 10IN011
Abh|shek Agarwa| 10IN122
A|ok 8agr| 10IN123
Comparlson of PlghesL ersonal 1ax 8aLes
0 10 20 30 40 30
Vietnam
China
Taiwan
Korea
Thailand
Indonesia
Philippines
India
Malaysia
Singapore
Hong Kong
Pong kong
Slngapore
Malaysla
lndla
hlllpplnes
lndonesla
1halland
korea
1alwan
Chlna
vleLnam
1axaLlon of lndlvlduals
ChargeabIe Income Tax Rates (%)
S$20,000 and below 0
S$20,001 - S$30,000 3.75
S$30,001 - S$40,000 5.75
S$40,001 - S$80,000 8.75
S$80,001 - S$160,000 14.75
S$160,001 - S$320,000 18
Above S$320,000 21
asls of AssessmenL
?ear of AssessmenL (?A)
Lhe Lax year runs from 1 !anuary Lo 31 uecember annually
recedlng ?ear asls
Lhe calendar year precedlng Lhe ?A (lncome and galns
derlved from Lrade buslness professlon or vocaLlon
assessable on precedlng accounLlng year basls)
Lg ?L 2010 buslness lncome would be assessable ln ?A
2011
1axaLlon of CLher Sources of lncome
ulvldends
lnLeresL
neL 8enL / neL Annual value
AnnulLy
Charge
enslon
8oyalLles
Cverseas 8emlLLances
ersonal 8ellefs Allowable ueducLlons
1ypes of ersonal 8ellefs
- Larned lncome rellef
- Wlfe/Chlld/arenLs rellef
- 8ellef for dellvery hosplLallsaLlon expenses for
4Lh chlld
- Pandlcapped broLhers or slsLers rellef
- rovldenL fund/llfe lnsurance rellef
- Course fees rellef
- 8ellef for forelgn mald levy
- nSmen (self/wlfe/parenL) rellef
- 8ellef for Cl cash Lopup/S8S ConLrlbuLlons
ersonal 8ellefs Allowable ueducLlons
Allowable ueducLlons
- uonaLlons
- SubscrlpLlons Lo professlonal bodles
- 1ravelllng expenses
- LnLerLalnmenL expenses
- CaplLal Allowances (for buslnesses only)
- unabsorbed Lax losses caplLal allowances
and donaLlons (for buslnesses only)
1axaLlon of arLnershlps
WhaL consLlLuLes a parLnershlp
arLners may conslsL of resldenL lndlvlduals nonresldenL lndlvlduals
as well as companles
A [olnL venLure beLween 2 companles or beLween a company and an
lndlvldual can also be classlfled as a parLnershlp
An assoclaLlon of persons would noL consLlLuLe a parLnershlp unless
Lhey carry on a buslness ln common wlLh a vlew Lo proflL
noL a person and noL LreaLed as a separaLe legal enLlLy
1ax ls noL lmposed on Lhe parLnershlp lnsLead parLners are assessed
lndlvldually on Lhelr respecLlve share of proflLs/losses of Lhe
parLnershlp
1axaLlon of arLnershlps
arLnershlp allocaLlon of roflLs
lncome of parLnershlp ls compuLed ln Lhe same way as LhaL
of a person carrylng on a Lrade or buslness
Ad[usLmenLs are made for parLners' salarles lnLeresL on
caplLal conLrlbuLed and oLher personal expenses
8esldual proflL (also known as dlvlslble proflLs) would be
allocaLed ln accordance Lo agreed proflL sharlng raLlos
lncome 1ax 1reaLmenL of LLs
ackground
LlmlLed LlablllLy arLnershlp (LL) AcL 2003
comes lnLo operaLlon on 11 Aprll 2003
LssenLlally parLnershlp wlLh llmlLed llablllLy
CpLlon of llmlLed llablllLy enLlLy wlLh lnLernal
flexlblllLy of a parLnershlp
lncome 1ax 1reaLmenL of LLs
leaLures
arLnershlp wlLh llmlLed llablllLy
8egarded as bodles corporaLe" ln law
noL affecLed by changes ln parLners
AL leasL 2 parLners
Clalms can be made agalnsL LL Lo full exLenL of lLs asseLs
Clalms can be made agalnsL negllgenL parLners and Lhelr personal asseLs
lnnocenL parLners' llablllLy llmlLed Lo amounL Lhey conLrlbuLed Lo Lhe LL
lncome 1ax 1reaLmenL of LLs
1ax 1reaLmenL
1reaLed as a parLnershlp and accorded Lax
LransparenL LreaLmenL
Lach parLner Laxed on share of proflLs based on
lLs own Lax raLe
lndlvldual based on personal lncome Lax raLe
Company based on corporaLe Lax raLe (20)
leaLures of CorporaLe 1ax SysLem
1errlLorlal asls of 1axaLlon
no caplLal galns Lax
recedlng ?ear asls
1ax LxempLlon on CerLaln lorelgn Source lncome
lorelgn 1ax CredlL SysLem
Comprehenslve 1ax 1reaLy neLwork
CorporaLe1ax 8aLe of 20
Comparlson of CorporaLe 1ax
8aLes

India
China
Philippines
Indonesia
Thailand
Malaysia
Korea
Taiwan
Vietnam
Singapore
Hong Kong
India
China
PhiIippines
Indonesia
ThaiIand
MaIaysia
Korea
Taiwan
Vietnam
Singapore
Hong Kong
new CorporaLe 1ax 8eglme wef
2003 arLlal 1ax LxempLlon
73 dlscounL for 1
sL
S$10000 Laxable lncome (1l)
30 dlscounL for nexL S$90000 1l
LffecLlvely Lhls means
1ax raLe for 1
sL
S$10000 1l 3
1ax raLe for nexL S$90000 1l 10
1ax raLe for 1l ln excess of 100000 20
1ax LxempLlon for new Companles
new companles allowed full Lax exempLlon on flrsL
$100000 of normal chargeable lncome (excludlng
Slngapore dlvldends) for any of Lhelr flrsL 3
consecuLlve ?As falllng wlLhln ?A 2003 Lo 2009
sub[ecL Lo meeLlng all 4 quallfylng condlLlons
arLlal exempLlon wlll sLlll be granLed for companles
LhaL do noL meeL Lhe quallfylng condlLlons
1ax LxempLlon for new
Companles
Cuallfylng condlLlons
lncorporaLed ln Slngapore
1ax resldenL ln Slngapore for LhaL ?A
no more Lhan 20 shareholders LhroughouL basls
perlod for LhaL ?A and
All shareholders are lndlvlduals LhroughouL basls
perlod for LhaL ?A
Cne1ler CorporaLe 1ax SysLem
8eplaces Lhe lmpuLaLlon sysLem from 1 !an
2003
CorporaLe Lax pald by company ls a flnal Lax
ulvldends recelved by shareholders are Lax
exempL
uLlllzaLlon of 1ax Losses
1ax losses can be carrled forward lndeflnlLely
wlLhln Lhe same enLlLy sub[ecL Lo no subsLanLlal
change ln shareholders
1ax losses can be Lransferred Lo anoLher group
enLlLy wef ?A 2003 (See Croup 8ellef SysLem)
1ax losses can be carrled back for 1 year wef ?A
2006 (See 1ax Loss Carry back)
Changes Lo Lhe lndlaSlngapore u1A
Comprehenslve Lconomlc CooperaLlon AgreemenL
(CLCA)
LffecLlve 1 AugusL 2003
A flaL raLe of 10 wlLhholdlng Lax on 8oyalLles
and lees for 1echnlcal Servlces
CaplLal Calns from allenaLlon of properLy
Changes Lo Lhe lndlaSlngapore u1A
CaplLal galns from allenaLlon of shares ln a company whlch owns prlnclpally dlrecLly
or lndlrecLly lmmovable properLy are no longer Laxable ln Lhe counLry ln whlch Lhe
lmmovable properLy ls slLuaLed buL ln Lhe counLry of resldence of Lhe vendor
Calns from allenaLlon of shares ln oLher Lype of companles are no longer Laxable
ln Lhe counLry of resldence of Lhe companles whose shares are sold buL ln Lhe
counLry of resldence of Lhe vendor
noL appllcable lf Lhe arrangemenLs were made wlLh Lhe prlmary purpose of Laklng
advanLage of Lhe beneflLs
noL appllcable Lo a Lax resldenL shell/condulL company
Shell/condulL company LoLal annual operaLlng expendlLure less Lhan S$200000
or 8S3 mllllon ln Lhe 24 monLhs precedlng Lhe galns (excepL for company llsLed on
Lhe recognlsed sLock exchange of Lhe ConLracLlng SLaLe)