Tax knowledge necessary for immigration to Singapore

individual income tax

The taxable amount of individual income tax will vary according to the taxpayer (taxpayer or non-taxpayer) and in

Tax knowledge necessary for immigration to Singapore

individual income tax

The taxable amount of individual income tax will vary according to the taxpayer (taxpayer or non-taxpayer) and income level. Singapore has a progressive tax system. Except for personal income tax relief, the personal income tax rate remains between 0-20%.

Meet the following conditions, as individual residents:

Singapore permanent residents who have newly settled in Singapore; or

Stay in Singapore for more than 183 days in a calendar year (including 183 days); or

I have been working in Singapore for three years in a row, even though I stayed in Singapore for less than 183 days in the first and third years.

In addition, they were all regarded as non-taxable residents in that year of assessment.

Taxpaying residents must pay taxes on their income in Singapore. Income obtained from outside Singapore due to being employed by a Singapore enterprise must also be taxed according to law. However, the overseas income obtained by individual residents is not taxed.

Taxpayers have the right to enjoy personal income tax relief for child support, vocational training fees, insurance premiums and contributions from the Central Provident Fund.

Non-tax residents who have been employed in Singapore for no more than 60 days in a calendar year may be exempted from personal income tax, except for non-resident individuals who are directors, entertainers and interns in Singapore. Non-taxpayer residents only pay income tax at the rate of 15% for income obtained in Singapore, or pay taxes at the individual income tax rate of residents, whichever is higher, but may not apply for personal income tax reduction or exemption.

corporate tax

All expenses or profits of investment in Singapore are subject to income tax unless explicitly exempted in the income tax law. These tax-free incomes include dividends from stocks and trust funds and interest on time deposits.

Both local enterprises and foreign enterprises must pay taxes on income earned in Singapore and overseas income earned in Singapore according to law.

Generally speaking, the tax basis of resident companies and non-resident companies is basically similar. However, resident companies can enjoy the following preferential tax policies, while non-resident companies have no right to enjoy them:

Resident companies have the right to enjoy the preferential treatment stipulated in the double taxation avoidance agreements signed between Singapore and other countries.

Dividends obtained by resident companies from abroad, profits of their overseas branches and service income obtained from abroad may be reduced or exempted.

Newly established resident companies can enjoy tax relief for up to three years.

When the management and control of a company is in Singapore, the company is regarded as a tax paying enterprise in Singapore. For example, branches of foreign enterprises in Singapore are usually not regarded as tax-paying enterprises.

Withholding income tax

When paying a certain amount to a non-tax company, withholding tax must also be paid, specifically involving interest, loans, royalties, management fees, rents and other funds.

Singapore abolished the estate tax from February 15, 2008.

Singapore has revised three tax bills and implemented more favorable tax policies.

Singapore's parliament passed amendments to income tax, consumption tax and stamp duty.

According to the revised income tax law, the government will give enterprises a one-time 20% enterprise income tax rebate, with a maximum limit of 654.38 million yuan, or give SMEs a cash subsidy of up to 5,000 yuan. The credit plan for productivity and innovation has been improved, and the tax deduction for six major projects of enterprises has been increased from 250% to 400%, and the upper limit of each expenditure project has also been increased from 300,000 yuan to 400,000 yuan. In addition, the maximum amount of cash subsidy that enterprises can get is raised from 2 1 000 yuan to 30,000 yuan per year.

The provisions of the Consumption Tax (Amendment) Act include allowing the government to introduce a new "approved marine custom" so that authorized maritime customers can buy or lease products with zero tax rate for use or installation on merchant ships sailing internationally.

The Stamp Duty (Amendment) Bill mainly deletes various stamp duties. When a private company is transformed into a limited liability partnership, stamp duty can also be exempted. It can give private companies more flexibility in restructuring.

Main tax incentives in Singapore

The preferential tax policies adopted by Singapore are mainly aimed at encouraging investment, export, increasing employment opportunities, production of high-tech products and production and business activities that make the whole economy more dynamic. For example, for industries with the nature of new technology development, a tax exemption period of 5 to 15 years is granted; The production of export products can enjoy 90% profit, and the term is 3 to 15 years; For production and service companies such as computer software and information services, agricultural technology services, medical research, laboratories and testing services, research and development expenses are allowed to be deducted twice.

In terms of foreign-related taxes, income earned by resident companies from abroad should be taxed when remitted to Singapore, but if there is a tax agreement, a credit can be obtained according to the agreement. In addition, residents from some countries that have no tax treaty with Singapore can also get unilateral preferential tax reduction or exemption from Singapore. These incomes include: income from providing professional technology and consulting, income from financial services as stipulated in the tax law.

Income earned in ASEAN countries can also receive corresponding unilateral tax relief. Dividends remitted to Singapore can get corresponding credit.