Singapore is a British Commonwealth country with the total area of 622 square kilometres, which situated in the tip of the Malaysian peninsula. Singapore detached from Malaysia and became a sovereign nation in 1965. Its British colonial background led to Singapore’s English-based legislation and official language. Singapore dollar is the local currency.
Singapore is one of the primary financial and trading centres in the world. Singapore is a big competitor to Hong Kong becoming the world’s largest container port. It has world-class professional infrastructures such as law firms, accountancy firms and major international banks.
Singapore Tax System
Tax rate for companies is a flat 17% in Singapore. To welcome SMEs, the government carries out a tax/incentives policy for Singapore resident companies.
For new companies, the first SG$100,000 corporate income tax rate is 0% for 3 years; 8.5% for taxable income up to SGD$300,000, and normal corporate tax rate of 17% is levied on taxable income above SG$300,000.
0% tax rate for the first SG$100,000 profit for first 3 years (conditions apply – please contact us for more details); 8.5% on profits under SG $300,000 and 17% on profits over SG $300,000;
Double Taxation Avoidance Agreements;
No dividends or capital gains tax;
No profit tax for company's offshore profit;
Low personal tax rates; progressive, at 22% or below.
Major entrance point to Southeast Asia;
Stable foreign exchange and securities industry supported with 24-hour financial trading;
Lots of primary international flight routes;
Competitor to Hong Kong of the world's largest container port.
Firm Economic Climate
Clear business operations with strong judicial system;
No reputation of “Tax Haven”;
Goods and services tax (GST) can reduce income taxes; Low GST rate (7%);
Firm economy to welcome foreign investors; Unrestricted on foreign ownership.
Superior business Infrastructure
Sound and regulated financial sector;
Advanced technical skills;
Well-established legal framework (excellent laws of Intellectual Property);
Primary international banks and proficient workforce;
Flexible immigration policies to quality foreigners;
Free for foreign ownership.
Singapore Company Benefits
Advantages of setting up a business in Singapore:
Singapore is a Gateway to Southeast Asia;
The easiest place to do business;
No “Tax Haven” reputation;
First SGD$100,000 profit is 0% tax rate;
No Profit tax if the company's offshore profit does not remit into Singapore;