By When Do I Need to File Corporate Tax?įrom YA 2020, all companies in Singapore are required to e-File their corporate tax documents by 30 November. Read more about the payments which are liable for withholding tax in our other article. In addition to corporate taxes, all companies are also required to pay withholding tax (tax which must be paid on payments to foreign companies) when they make payments in respect of certain categories of services to non-resident companies. (With effect from YA 2020, this will be reduced to 75% tax exemption on the first S$100,000 of chargeable income and 50% tax exemption on the next S$100,000 of chargeable income.) This scheme allows newly-incorporated companies to enjoy 100% tax exemption on its first S$100,000 of chargeable income and a further 50% tax exemption on the next S$200,000 of chargeable income. For the first 3 YAs, a Singapore tax-resident company may qualify for tax exemption under the Start-Up Tax Exemption Scheme.To qualify for such exemptions, the foreign country in question must have a corporate tax of at least 15% and the Inland Revenue Authority of Singapore (IRAS) considers the exemption to be beneficial to the company. A Singapore tax-resident company may be eligible for tax-exemptions on foreign dividends, foreign branch profits and service incomes from foreign countries provided that such incomes have already been subject to corporate tax in the foreign country.Similarly, if the income has already been taxed in Singapore, the company may claim tax exemption or reduction in the foreign country. This means that the company is eligible for tax exemption or reduction on any income which has already been taxed in the foreign country. A Singapore tax-resident company can avoid double taxation of certain incomes in countries which Singapore has signed Avoidance of Double Taxation Agreements (DTAs) with.The benefits enjoyed by tax-resident companies include: What are the benefits a Singapore tax-resident company enjoys? In determining where the company’s control and management is exercised, it is more dependent on the location where its strategic decisions are made (this will generally be the location of the company’s board meetings), rather than the company’s place of incorporation. For example, for YA 2018, the 12-month period would generally be from 1 April 2016 to 31 March 2017. The YA is a 12-month period in which the company’s income will be assessed. When is a company considered a Singapore tax-resident?Ī company will be considered tax-resident in Singapore if its control and management had been exercised in Singapore for the preceding Year of Assessment (YA). However, Singapore tax-resident companies enjoy several benefits over non-tax resident companies. Regardless of tax-residency status, all companies are required to pay corporate tax under the Income Tax Act on any chargeable income derived from Singapore or foreign income remitted into Singapore. Who Must Pay Corporate Taxes in Singapore? Penalties for Late or Non-Payment of Corporate Tax.How Do I File and Pay Corporate Tax in Singapore?.How Much Corporate Tax Do I Need to Pay?.By When Do I Need to File Corporate Tax?.Who Must Pay Corporate Taxes in Singapore?.This article will provide you with a brief overview of corporate taxes in Singapore, as well as the procedures involved in paying your taxes, namely: Singapore has one of the most attractive corporate tax regimes in Asia, with low and transparent tax rates and an efficient tax filing/reporting system.
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