Real People, Real Difference
Singapore Tax Rates
| Corporate Tax Rate | Personal Tax Rate (Resident Rate) | Personal Tax Rate (Non Resident) |
Goods & Services Tax | Other Tax Information |
|---|
Corporate Tax Rate
The corporate tax rate is charged on the chargeable income of a company, irregardless of whether it is a local or foreign company.
The corporate tax rate for Year of Assessment (YA) 2010 onwards is 17%
In addition, companies can enjoy partial tax exemption scheme on a portion of its chargeable income. The exemption rates are as illustrated below:
Partial Exemption Scheme for all Companies
| Chargeable Income | Taxable income amount | Tax Payable | Effective Tax Rate |
|---|---|---|---|
| First $10,000 | $2,500 | $425 | 4.3% |
| Next $290,000 | $145,000 | $24,650 | 8.5% |
| First $300,000 | $147,500 | $25,075 | 8.4% |
| From $300,001 onwards | Fully taxable at 17% | ||
For new startup companies, there is a Tax Exemption Scheme for new start-up companies available for all qualifying companies* for the first 3 consecutive YAs of the qualifying companies. The exemption rates are as illustrated below:
Tax Exemption Scheme for Qualifying Companies (new startups)
| Chargeable Income | Taxable income amount | Tax Payable | Effective Tax Rate |
|---|---|---|---|
| First $100,000 | $0 | $0 | 0% |
| Next $200,000 | $100,000 | $17,000 | 8.5% |
| First $300,000 | $100,000 | $17,000 | 5.7% |
| From $300,001 onwards | Fully taxable at 17% | ||
Qualifying Companies must meet the following criteria for YA 2009 onwards:
- Be incorporated in Singapore
- Be a tax resident in Singapore (ie, the control and management of the business is exercised in Singapore)
- Have no more than 20 shareholders throughout the basis period for which the YA is claimed
- Have at least 1 individual shareholder beneficially holding a minimum of 10% of the issued ordinary shares of the company
Personal Tax Rate for Resident Individual (Resident Rate)
| Chargeable Income | YA2011* Tax Rate (%) |
YA2011 Income Tax Payable ($) |
YA2012* Tax Rate (%) |
YA2012 Income Tax Payable ($) |
Tax Savings in $ (%) |
|---|---|---|---|---|---|
| First $20,000 | 0 | $0 | 0 | $0 | - |
| Next $10,000 | 3.5 | $350 | 2 | $200 | $150 (43%) |
| First $30,000 | - | $350 | - | $200 | $150 (43%) |
| Next $10,000 | 5.5 | $550 | 3.5 | $350 | $200 (36%) |
| First $40,000 | - | $900 | - | $550 | $350 (39%) |
| Next $40,000 | 8.5 | $3,400 | 7 | $2,800 | $600 (18%) |
| First $80,000 | - | $4,300 | - | $3,350 | $950 (22%) |
| Next $40,000 | 14 | $5,600 | 11.5 | $4,600 | $1,000 (18%) |
| Next $40,000 | 14 | $5,600 | 15 | $6,000 | -$400 (-7%) |
| First $160,000 | - | $15,500 | - | $13,950 | $1,550 (10%) |
| Next $40,000 | 17 | $6,800 | 17 | $6,800 | - |
| Next $120,000 | 17 | $20,400 | 18 | $21,600 | -$1,200 (-6%) |
| First $320,000 | - | $42,700 | - | $42,350 | $350 (0.8%) |
| Above $320,000 | 20 | $42,700++ | 20 | $42,350++ | <$350 (<0.8%) |
* YA2011 refers to year of assessment 2011 which takes into account your income in the calendar year of 2010. YA2012 refers to year of assessment 2012 which takes into account your income in the calendar year of 2011.
Personal Tax Rate for Non Resident Individuals
You are a non resident if you have stayed/worked in Singapore for less than 183 days or you are a director of a company in Singapore without employment pass.
Your employment income is taxed at the higher of resident rate or 15%.
Director’s fees, consultation income and other income received are taxed at 20%
Goods Services Tax
The Goods and Services Tax (GST) is applicable for local sale of goods and services made in Singapore.
The GST rate is at 7%.
GST registration is mandatory if the turnover of your business is S$1 million for the past 12 months. In addition, you can also apply to be a GST registered trader voluntarily.
Other Tax Information
| Other Income and Gains | Tax Rate |
|---|---|
| Capital Gains | 0% |
| Dividends declared from after tax profits to shareholders | 0% |
| Foreign sourced income not brought into singapore | 0% |
| Foreign sourced income brought into Singapore | Determined based on available tax treaties between Singapore and country where income is sourced. |