{"id":1580,"date":"2024-04-09T12:58:31","date_gmt":"2024-04-09T12:58:31","guid":{"rendered":"https:\/\/eliteedu.com.sg\/?page_id=1580"},"modified":"2025-11-20T10:12:17","modified_gmt":"2025-11-20T10:12:17","slug":"tax-compliance","status":"publish","type":"page","link":"https:\/\/elitegroup.com.sg\/en\/tax-compliance\/","title":{"rendered":"Tax Compliance"},"content":{"rendered":"
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corporate income tax<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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Corporate income tax rate<\/strong><\/p>

Whether a Singapore local company or a foreign company, a company is subject to tax at a flat rate of 17% on its taxable income.<\/p>

Assessment base period and year<\/b><\/p>

In terms of taxes, using the same example above, 2020 isYear of Assessment (YA). In other words, YA<\/b>This is the year your income is assessed for tax.<\/p>

To assess tax, the Inland Revenue Authority of Singapore looks at the company\u2019s income, expenses, etc. for the financial year. This financial year is called the \u201cbase year\u201d.Expect<\/strong>\u201d<\/p>

The base period is generallyAssessment Year (<\/b>YA) in the 12 months prior to the start of the study.<\/p>

Taxable income means:<\/div><\/div><\/div><\/div><\/div>
  1. anytrading<\/span><\/span>or the proceeds or profits of a business;<\/li>
  2. income such as dividends, interest and rental;<\/li>
  3. Royalties and any other profits;<\/li>
  4. Others are income-based in nature.<\/li><\/ol>
    Singapore companies can<\/span><\/span>deductOperating expenses<\/strong>,<\/span>capital<\/span><\/span><\/strong>allowance<\/strong>andRelief<\/strong>etc. to reduce taxable income, which will reduce tax expenditure.<\/span><\/div>
    \u00a0<\/div>

    Operating expenses<\/h4>
    Business expenses are the expenses you pay to run your business. Some examples are CPF contributions, salaries, renovations, advertising, etc.<\/div>
    Business expenses may or may not be deductible. When they are deductible, they reduce your taxable income and the amount of tax you need to pay.<\/div><\/div>
    \u00a0<\/div>

    Deductible business expenses<\/h4>
    Generally speaking, deductible business expenses are those that are \u201cwholly and entirely devoted to the production of income.\u201d In other words, they must meet all of these conditions:<\/div>
    • Fees are used only to produce revenue.<\/li>
    • Expenses are not contingent liabilities, i.e. they do not depend on future events that may or may not occur. In other words, expenses must be incurred. Expenses are \u201cincurred\u201d when the legal obligation to pay the expense arises, regardless of the date on which the payment is actually made.<\/li>
    • Expenses are income in nature, not capital.<\/li>
    • The Income Tax Act does not prohibit deductions for expenses.<\/li><\/ul>

      Nondeductible business expenses<\/h4>
      Nondeductible business expenses are those paid by you or your employees for activities that do not qualify as above. This includes personal expenses, such as travel or entertainment that are not related to business operations, and capital expenses, such as those for setting up a business and purchasing fixed assets.<\/div><\/div>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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      Goods and Services Tax (GST)<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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      Goods and Services Tax or GST is a broad-based consumption tax levied on imported goods (collected by Singapore Customs) and on almost all supplies of goods and services within Singapore. In other countries, Goods and Services Tax is known as Value Added Tax or VAT.<\/p>

      The GST exemption applies to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and imports and local supplies. Exports of goods and international services are taxed at zero percent.<\/p>

      What is GST?<\/h5>
      Businesses that need to register for GST<\/h5>

      As a business, you must register for GST when your taxable turnover exceeds S$1 million.<\/p>

      If the taxable turnover of a business does not exceed S$1 million, it can still choose to voluntarily register for GST after careful consideration.<\/p>

      Scope of consumption tax
      As a general principle, sales of goods or services by a taxable person in Singapore in the course of carrying on business or promoting business are subject to GST at the standard rate of 7% unless the sales qualify as zero-rated or are exempt. The main exemptions are for financial services and the sale or rental of residential properties. Zero-rating applies to international supply of services and exports of goods.<\/p>

      When is consumption tax paid?
      You need to pay GST when you purchase goods and services from a GST-registered (registered) company and import goods into Singapore.
      Who can collect GST?
      A company that has registered with the Director General of GST is allowed to charge GST.<\/p>

      When do I have to register?
      A person or company that provides taxable goods and\/or services in Singapore and whose annual turnover exceeds (or is expected to exceed) S$1 million must register for GST. A business must notify the Singapore Inland Revenue Authority of its obligation to register for GST within 30 days after the obligation arises. If most of the goods or services are mainly exported, or zero-rated supplies are supplied globally ("zero-rated supplies"), registration is not required.<\/p>

      Is registration voluntary?
      A company can apply to the Comptroller of GST to voluntarily collect GST. The Comptroller decides whether the application is approved. Once the application is approved, the company must remain registered for at least two years.<\/p>

      Why should I register?
      Most companies registered to collect GST can claim back the GST paid on the goods they purchase. When the GST paid exceeds the GST collected, the company can claim the difference from the Inland Revenue Authority of Singapore as a GST refund. When the GST collected exceeds the GST paid, the difference needs to be paid to the Inland Revenue Authority of Singapore.<\/p>

      Who can register (register)?
      Sole Proprietor
      Partnership
      Limited Liability Partnership
      company
      Clubs, associations, management companies or institutions
      Non-profit organization
      Statutory Bodies
      Government Agencies
      In order to be able to apply for higher GST rebates, many small and medium-sized enterprises will apply to become GST registered merchants.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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      Personal Income Tax<\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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      Who needs to pay taxes?<\/h4>

      Individuals working in Singapore<\/h4>

      All individuals who receive payment (whether in cash or in kind) for any services rendered or employment in Singapore are subject to income tax unless specifically exempted under the Income Tax Act. Learn more at Working and Taxation in Singapore.<\/p>

      Individuals doing business in Singapore<\/h4>

      All self-employed persons who earn income in Singapore, such as sole proprietors, partners, freelancers, taxi drivers, hawkers, commission agents, etc., are required to pay income tax.<\/p>

      Please see<\/p>

      1. Partner in Singapore<\/li>
      2. Sole proprietor\/self-employed person in Singapore.<\/li><\/ol>

        Individuals doing business in Singapore<\/h4>

        All individuals who derive income from the purchase of properties, shares, unit trusts, fixed deposits, etc. in Singapore are subject to income tax unless they are specifically exempted under the Income Tax Act.<\/p>

        Individuals working outside Singapore<\/p>

        The following individuals are subject to income tax.<\/p>

        • An individual working outside Singapore whose overseas employment is incidental to his\/her employment in Singapore; or<\/li>
        • An individual working outside Singapore on behalf of the Singapore Government; or<\/li>
        • An individual who derives income from a partnership in Singapore.<\/li><\/ul>

          Individuals who are not employed but have income<\/h4>

          Individuals who are not employed but receive the following income are subject to income tax unless they are specifically exempted under the Income Tax Act:<\/p>

          1. Investment income.<\/li>
          2. NSman earnings (including all incentives and allowances such as IPPT monetary awards).<\/li>
          3. Part-time income.<\/li>
          4. Royalty income.<\/li>
          5. pension; or<\/li>
          6. Supplemental retirement plan withdrawals.<\/li><\/ol>

            Individuals exempt from tax<\/h4>

            Generally speaking, you don\u2019t have to pay income tax if you meet the following conditions:<\/p>

            • Your gross annual income is $22,000 or less.<\/li>
            • You have not earned or received any income in Singapore.<\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t
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              Income in Singapore includes:<\/h4>\n

              Employment income:<\/h5>\n
                \n
              • Salaries, bonuses, directors' fees, commissions and others<\/li>\n
              • Proceeds from exercising stock options<\/li>\n
              • pension<\/li>\n
              • Layoffs and retirement benefits<\/li>\n<\/ul>\n
                Income from a trade, business, profession or occupation:<\/h5>\n
                  \n
                • Income earned as a self-employed person or sole proprietor (commission broker, freelancer, taxi driver, hawker, etc.)<\/li>\n
                • Income from partnerships<\/li>\n
                • Income received in the form of virtual currency<\/li>\n<\/ul>\n
                  Income received in the form of government grants:<\/h5>\n
                    \n
                  • PIC Bonus<\/li>\n
                  • Special Employment Credit<\/li>\n
                  • Salary credit payment<\/li>\n
                  • Employment Support Program<\/li>\n<\/ul>\n

                    Note: These government grants (except the Job Support Scheme) are taxable in the tax year when the payment is received. For self-employed taxpayers, only the Wage Credit is automatically included on your tax return.<\/p>\n

                    Property or investment income:<\/h5>\n
                      \n
                    • dividend<\/li>\n
                    • Proceeds from the sale of property, shares and financial instruments<\/li>\n
                    • Profit and Gain<\/li>\n
                    • Property rental<\/li>\n<\/ul>\n
                      Other sources of income:<\/h5>\n
                        \n
                      • Annuity (annual periodic payments)<\/li>\n
                      • Fees (maintenance)<\/li>\n
                      • Estate\/Trust Income<\/li>\n
                      • National Award for Service Housing, Medicine and Education<\/li>\n
                      • Royalties<\/li>\n
                      • Bonus (Toto, 4D\u2026)<\/li>\n
                      • Withdrawal from Supplementary Retirement Scheme (SRS)<\/li>\n<\/ul>\n

                        Singapore's personal income tax is subject to a progressive tax rate system. Excluding personal income tax exemptions, the personal income tax rate remains between 0-22%. Taxpaying residents are entitled to personal income tax exemptions for child support, vocational training fees, and CPF contributions.<\/p>\n

                        In general, if your total annual income is less than S$20,000, you do not have to pay taxes! However, you still need to report your personal income to the Singapore Inland Revenue Authority of Singapore.<\/p>\n

                        <\/p>\n

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                         Foreign income received in Singapore:<\/h4>\n<\/section>\n<\/section>\n<\/section>\n

                        Generally, foreign income earned by an individual in Singapore is not taxable and does not need to be declared in his\/her income tax return. This includes foreign income paid into a Singapore bank account.<\/p>\n

                        Foreign income is taxable in Singapore if:<\/p>\n

                          \n
                        1. Received through partnership in Singapore<\/li>\n
                        2. You have to travel abroad as part of your job requirements, such as a regional sales manager employed by a Singaporean company<\/li>\n
                        3. Representing the Singapore Government in overseas employment<\/li>\n
                        4. Has trade\/business in Singapore and is carrying on trade\/business overseas related to its Singapore trade<\/li>\n<\/ol>\n

                          If the earnings you earn from working overseas are taxed abroad, you may be able to claim double taxation relief.<\/p>\n

                          For more information on how to apply for tax exemptions, please consult Elite.Elite can provide you with personal tax declaration services.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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                          \u4f01\u4e1a\u6240\u5f97\u7a0e \u4f01\u4e1a\u6240\u5f97\u7a0e\u7a0e\u7387 \u65e0\u8bba\u662f\u65b0\u52a0\u5761\u672c\u5730\u516c\u53f8\u8fd8\u662f\u5916\u56fd\u516c\u53f8\uff0c\u516c\u53f8\u5747\u5e94\u6309\u5176\u5e94\u7a0e\u6536\u5165\u768417%\u7edf\u4e00\u7a0e\u7387\u7eb3\u7a0e\u3002 \u8bc4\u4f30 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"site-sidebar-layout":"no-sidebar","site-content-layout":"page-builder","ast-site-content-layout":"full-width-container","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"disabled","ast-breadcrumbs-content":"","ast-featured-img":"disabled","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"class_list":["post-1580","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/pages\/1580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/comments?post=1580"}],"version-history":[{"count":9,"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/pages\/1580\/revisions"}],"predecessor-version":[{"id":7933,"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/pages\/1580\/revisions\/7933"}],"wp:attachment":[{"href":"https:\/\/elitegroup.com.sg\/en\/wp-json\/wp\/v2\/media?parent=1580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}