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Taxation Services Faqs

Corporate Income Tax

What is the corporate tax rate in Singapore?

Singapore implements progressive corporate income tax. Companies having taxable income above S$300,000 are taxed at the rate of 17%. This is the maximum tax rate a company is subjected to.
For a newly incorporated Singapore company which has individual stockholders, tax rates are as follows:

  1. For the first three years, initial taxable income or the annual profits of up to S$100,000 are taxed at 0%.
  2. The next S$200,000 of taxable income is taxed at 8.5%.
  3. Taxable income of more than S$300,000 is taxed at 17%.

For a newly incorporated company with corporate stock holders, tax rates are as follows:

  1. Initial taxable income up to S$300,000 is taxed at 8.5%.
  2. Income above S$300,000 is taxed at 17%.

What is the due date for filing corporate income tax?

November 30th is the due date for filing corporate income tax in Singapore. Singapore taxation system implements prior year basis tax returns.

Each company has to file estimated tax returns with authorities within the 3 months from the end of its financial year.

Are dividends to shareholders taxable in Singapore?

Singapore implements one-tier corporate tax system. Once a company pays its corporate income tax (final tax) on its taxable income, it can distribute tax-free dividend to its shareholders.

Personal Income Tax

What is the personal income tax rate in Singapore and its due date of filing?

Personal income tax rate applicable to Singapore citizens and the permanent residents is progressive. It starts at 0% and based on income increases up to 20% for the taxable income above S$300,000.

In case of non-residents, they are taxed at flat rate of 15% or the progressive rates, whichever yields the higher tax amount.

The due date for filing personal income tax in Singapore is April 15. For personal income tax Singapore follows a calendar year.

Who is considered as a Singapore resident for tax purposes?

An individual who has stayed and earned income for more than 183 days in Singapore in the year of tax assessment is considered as a Singapore resident. The individual must pay personal income tax that is applicable to his income.

Are gains on stock investments are taxable?

Gains derived from personal investment in stocks are considered as capital gains. It is not taxable.

However, if an employee buys shares of his or her company or its parent company by using share awards or any other employee share purchase plans offered by the company then the gains from these shares may become taxable.

Goods and Service Tax in Singapore

What is Goods and Service Tax(GST) and what is its current rate?

GST is a consumption tax levied on the imports of goods in Singapore. It is also levied on the supply of goods and services in Singapore. It is an indirect tax and its current rate is 7%.

Is my company required to register for GST?

GST registration is of two types, compulsory registration and voluntary registration.

Compulsory GST Registration

If a company’s turnover is more than S$1 million for the last 12 months or it is expected to be more than S$1 million for next 12 months then, the company should go for GST registration.

Voluntary GST Registration

A company should go for voluntary GST registration if it satisfies the following criteria:

  • Its annual turnover of does not exceed S$1 million; or
  • The company supply goods outside Singapore; or
  • The company supply financial services that are considered as international services.

If my company export goods and services outside Singapore, must it collect GST?

No, GST is not applicable to the Zero-rated supplies i.e. export of goods and services.

Estimated Chargeable Income

What is ECI?

ECI is Estimated Chargeable Income of a company. Within three months from the end of the financial year of a company, it must file ECI statements with the IRAS. It is a must for each and every company in Singapore. A company with zero chargeable income for the previous year of assessment must file ‘Nil ECI’ statement.

Who is exempted from filing for ECI?

Companies that qualify for administrative concessions are exempted from filing ECI. Following is the criteria:

Your company’s annual revenue is less than S$1 million and your ECI is NIL.

ECI here is the amount before deducting the exempt amount under schemes offered by the authorities for a new startup company.

There are few other entities which are exempted from filing for ECI;

  1. Foreign ship owners or charterers (Local shipping agent submits the Shipping Return)
  2. Foreign universities
  3. Designated unit trusts and approved CPF unit trusts
  4. Real estate investment trusts that have been exempted under Section 43(2) of the Income Tax Act
  5. Those exempted by IRAS from furnishing ECI

What is to be declared in ECI Form?

Company’s revenue from its main source of income is declared in its ECI statement. Income from gains or from disposal of fixed assets is not included in the revenue. This data may come from the audited accounts or the management accounts of the company.

Property Tax

What is Property Tax in Singapore?

Property tax is a type of wealth tax and has no connection with the rental income derived from properties. Owners of the properties in Singapore must pay it. It is a progressive tax. It is calculated as;

  • Property Tax payable yearly = Annual Value X Tax Rate
  • Property Tax for (2014) is;
  • For owner-occupied homes range between 0% – 17%; and
  • For non-owner-occupied homes range between 10% – 19%.

To encourage Singaporeans for buying homes, owner-occupied properties are taxed at a low rate than the properties that are rented out by their owners.

Property Tax Rates for 2014 and 2015

Property tax rates applied for the Owner-Occupied Homes and Non-Owner-Occupied Residential Properties are progressive.

  • Property tax rates in 2014 for owner-occupied homes range between 0% – 17%.
  • Property tax rates in 2014 for non-owner-occupied homes range between 10% – 19%.
  • Detailed rates are presented below in tables for your reference.

Progressive Tax Rates for Owner-Occupied Homes

Annual Value($) Effective 1 Jan 2014 Effective 1 Jan 2015
First 8,000 0% 0%
Next 47,000 4% 4%
Next 5,000 5% 5%
Next 10,000 6% 6%
Next 15,000 7% 8%
Next 15,000 9% 10%
Next 15,000 11% 12%
Next 15,000 13% 14%
AV in excess of $130,000 15% 16%

Progressive Tax Rates for Non-Owner-Occupied Residential Properties (Exclude residential land)

Annual Value($) Effective 1 Jan 2014 Effective 1 Jan 2015
First 30,000 10% 10%
Next 15,000 11% 12%
Next 15,000 13% 14%
Next 15,000 15% 16%
Next 15,000 17% 18%
AV in excess of $90,000 19% 20%
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