Moores Rowland

Tax Facts & Useful Tools​

Moores Rowland provide an overview of Singapore tax facts for 2024, along with some useful tools for managing tax requirements effectively.

Corporate Income Tax​

Corporate income tax in Singapore is structured to create a business-friendly environment that encourages both local and international companies to operate in the country.

Corporate Income Tax Rate
  • The standard corporate income tax rate in Singapore is 17%.
  • This rate is applied to a company’s chargeable income, which is its taxable revenue after deducting allowable expenses and other reliefs.
Corporate Income Tax Rebate
  • YA2019 – 20% of tax payable, capped at $10,000
  • YA2020 – 25% of tax payable, capped at $15,000
  • YA2025 – 50% of tax payable, CIT Rebate conditions as below:
    • Company meets local employee condition and receives CIT Rebate Cash Grant of $2,000
      • If CIT Rebate ≤ $2,000: No additional CIT Rebate is given.
      • If CIT Rebate > $2,000: CIT Rebate (capped at $40,000) less $2,000 is given.

    • Company does not meet local employee condition and does not receive CIT Rebate Cash Grant of $2,000

      • If CIT Rebate > $0: Full CIT Rebate (capped at $40,000) is given.

Partial tax exemption from Year of Assessment (YA) 2020

Partial Tax Exemption: Singapore offers partial tax exemptions on a company’s chargeable income:

  • For the first SGD 10,000, a 75% exemption applies.
  • For the next SGD 190,000, a 50% exemption applies.
  • Up to $102,500
Full tax exemption for new start-up companies

The tax exemption scheme for new start-up companies was introduced to support entrepreneurship and to grow our local enterprises.

The tax exemptions for qualifying companies for their first 3 consecutive YAs are as follows:

 
YA 2020 onwardsYA 2010 to YA 2o19
  • 75% exemption on the first $100,000 of normal chargeable income*; and
  • A further 50% exemption on the next $100,000 of normal chargeable income*.
  • Full exemption on the first $100,000 of normal chargeable income*; and
  • A further 50% exemption on the next $200,000 of normal chargeable income*.
Group relief

Singapore’s Group Relief allows companies within the same group to transfer current-year losses to offset each other’s taxable profits. This is beneficial for companies with a mix of profit-making and loss-making entities.

Withholding Tax​

In Singapore, withholding tax applies to certain types of payments made to non-residents (both individuals and companies). It ensures that the Singapore government can collect tax on income generated within Singapore but paid to non-resident individuals or companies.

Scope of Withholding Tax

Withholding tax in Singapore applies to payments such as:

  • Interest, commission, fees, or any other payments in connection with a loan or indebtedness.
  • Royalties or payments for the use of or right to use intellectual property (like patents, trademarks, and copyrights).
  • Management fees or technical service fees for services provided by non-residents.
  • Rent or other payments for the use of movable property.
  • Non-resident directors’ fees and remuneration.
Filing and Payment Obligations
  • The payer is responsible for withholding the tax at the time of payment to the non-resident and for filing a withholding tax return (Form IR37) with the Inland Revenue Authority of Singapore (IRAS).
  • Withholding tax must be filed and paid to IRAS by the 15th of the second month following the date of payment to the non-resident.
  • Late payment incurs penalties and possible fines.
Payments that are Subject to Withholding Tax

The following types of payment are subject to withholding tax when paid to non-resident companies:

  • Interest, commissions or fees in connection with any loan or indebtedness
  • Royalties or other payments for the use of or the right to use any movable property
  • Payments for the use of or the right to use scientific, technical, industrial or commercial knowledge or information or for the rendering of assistance or service in connection with the application or use of such knowledge or information
  • Payments of management fees
  • Rent or other payments for the use of any movable property
  • Payments for the purchase of real property from a non-resident property trader
  • Payments made from structured products (other than payments which qualify for tax exemption under Section 13(1)(zj) of the Income Tax Act 1947)
  • Distributions from a real estate investment trust (REIT)
Withholding Tax Rates
Nature of Income
Withholding Tax Rate
Interest, commissions, fees, or other payments in connection with any loan or indebtedness
15%
Royalties or other lump-sum payments for the use of movable properties (e.g., intellectual property)
10%
Royalties and other payments made to an author, composer, or choreographer
24% (22% from Jan 1, 2016, to Dec 31, 2022)
Payments for the use of or the right to use scientific, technical, industrial, or commercial knowledge or information
10%
Rent or other payments for the use of movable properties
15%
Technical assistance and service fees
Prevailing Corporate Income Tax Rate (currently 17%)
Management fees
Prevailing Corporate Income Tax Rate (currently 17%)
Time, voyage, and bareboat charter fees for the charter of ships
NIL
Proceeds from the sale of any real property by a non-resident property trader
15%
Distribution of taxable income by a Real Estate Investment Trust (REIT) to a non-resident non-individual unit holder
10%
Charter fees (ships)
0-2%

Transfer Pricing

Transfer Pricing refers to the pricing of goods, services, and intangibles transferred between related entities, typically within multinational corporations. In Singapore, the Inland Revenue Authority of Singapore (IRAS) enforces transfer pricing rules to ensure that related parties transact with each other as if they were independent parties in open market conditions, also known as the "arm's length principle".

Who must prepare

  • Gross Revenue Exceeds $10 Million:
    If the taxpayer’s gross revenue derived from their trade or business exceeds $10 million for the basis period concerned, they must prepare transfer pricing documentation for that period.

  • Documentation Requirement in the Previous Period:
    If transfer pricing documentation was required for the basis period immediately before the current period, then the taxpayer is required to prepare documentation for the current period as well

Category of Related Party TransactionThreshold (SGD) per Financial Year
  • Purchase of goods from all related parties
  • Sales of goods to all related parties
  • Loan to/from all related parties
  • All other categories of related-party income or expenses
  • 15 million
  • 15 million
  • 15 million
  • 1 million (per category of transaction)

Goods and Services Tax (GST)

Goods and Services Tax (GST) is a broad-based consumption tax in Singapore applied to most goods and services supplied within the country, as well as on the importation of goods. 

Who Needs to Register for GST?

In Singapore, the GST registration requirements based on taxable turnover are applied under two views: the retrospective view and the prospective view. 

1. Retrospective View

  • If your taxable turnover exceeds $1 million at the end of the calendar year (December 31), you must register for GST.
  • Registration Deadline: You are required to apply for GST registration by January 30 of the following year.
  • Effective Registration Date: Once approved, your GST registration will take effect on March 1 of that year.

2. Prospective View

  • If, at any point, you reasonably expect that your taxable turnover will exceed $1 million in the next 12 months, you must apply for GST registration.
  • Registration Deadline: You must apply for GST registration within 30 days from the date of your forecast (i.e., when you reasonably expect your revenue will exceed $1 million in the upcoming year).
  • Effective Registration Date: Your GST registration will be effective on the 31st day from the forecast date.

Businesses may also voluntarily register for GST if they do not meet the registration threshold, provided they can comply with the GST reporting and record-keeping requirements.

GST rates
  • The current GST rate in Singapore is 9%
  • GST is applied to both domestic supplies of goods and services in Singapore and imported goods, although certain types of supplies are exempt or zero-rated.
  • Zero-rated supplies (taxed at 0%) include exports of goods and international services.
  • Exempt supplies (not subject to GST) include the sale and lease of residential properties and most financial services.
Filing and payment deadline

In Singapore, GST returns are generally filed quarterly, but businesses have the option to elect for monthly filing if preferred. Here’s a breakdown of the GST filing and payment timelines:

  1. Quarterly Filing (Default):

    • GST-registered businesses are required to file GST returns within one month after the end of each GST accounting period (typically quarterly).

  2. Monthly Filing (Optional):

    • Businesses can opt for monthly filing instead of quarterly, providing more frequent accounting and payment if desired.

  3. Payment via GIRO:

    • If a business is on a General Interbank Recurring Order (GIRO) plan for GST payments, the payment deductions occur on the 15th day of the month following the payment due date. This means businesses on GIRO enjoy an extended period for payment deductions, which aids in cash flow management.
Reverse charge and overseas vendor registration

  • Reverse Charge Regime:

    • Applies to GST-registered businesses that import services or low-value goods from overseas and are not entitled to full input tax credit.
    • Requires the business to account for GST on these imports as if they were both the supplier and buyer.

  • Overseas Vendor Registration (OVR) Regime:

    • Applies to overseas suppliers, electronic marketplace operators, or redeliverers who sell digital/non-digital services or low-value goods to non-GST registered customers in Singapore.
    • Mandatory registration if supplies to Singapore exceed SGD 100,000 in a year.

Property Tax

Property Tax in Singapore is a tax on the ownership of property, whether residential, commercial, or industrial. It applies to both owner-occupied and non-owner-occupied properties, with tax rates varying based on the property type and usage.

Key Aspects of Property Tax in Singapore
  • Property tax is calculated on the Annual Value (AV) of the property, which is the estimated annual rent the property could fetch if it were rented out, excluding furnishings and maintenance fees.
  • The Inland Revenue Authority of Singapore (IRAS) reviews and determines the AV periodically to reflect market rental rates.
Property Tax Rates
  • Residential Properties:
    • Owner-occupied residential properties are taxed at progressive rates ranging from 0% to 16% of the AV.
    • Annual Value (AV) – Tax rate
      • First $8,000 – 0%
      • Next $47,000 – 4%
      • Next $15,000 – 6%
      • Next $15,000 – 8%
      • Next $15,000 – 10%
      • Next $15,000 – 12%
      • Next $15,000 – 14%
      • AV above $130,000 – 16%
    • Non-owner-occupied residential properties, such as rental properties, are taxed at progressive rates from 10% to 20% of the AV.
    • Annual Value (AV) – Tax rate
      • First $30,000 – 10%
      • Next $15,000 – 12%
      • Next $15,000 – 14%
      • Next $15,000 – 16%
      • Next $15,000 – 18%
      • AV above $90,000 – 20%
  • Non-Residential Properties:
    • Commercial and industrial properties are taxed at a flat rate of 10% of the AV.
Stamp Duty

Stamp duty is based on the higher of either the purchase price or market value of the asset being transferred.

  1. Deadline for Payment

    • Documents signed in Singapore: Must be stamped and paid within 14 days of execution.
    • Documents signed overseas: Must be stamped and paid within 30 days of receipt in Singapore.
  2. Buyer’s Stamp Duty (BSD) for Real Estate
    • Applies to all real estate in Singapore.
    • Rates:
      • First $180,000: 1%
      • Next $180,000: 2%
      • Next $640,000: 3%
      • Amount exceeding $1,000,000: 4%
  3. Additional Buyer’s Stamp Duty (ABSD) for Residential Properties (Effective April 27, 2023)
    • Entities purchasing any residential property or transferring to a living trust: 65%
    • Housing developers purchasing residential property: 35% + 5% (non-remittable)
    • Foreign buyers: 60%
    • Singapore Permanent Residents (PRs):
      • First property: 5%
      • Second property: 30%
      • Third and subsequent properties: 35%
    • Singapore Citizens:
      • First property: Exempt
      • Second property: 20%
      • Third and subsequent properties: 30%
  4. Seller’s Stamp Duty (SSD) for Residential and Industrial Properties
    • Residential Properties:
      • Disposed within 1 year: 12%
      • Disposed within 1–2 years: 8%
      • Disposed within 2–3 years: 4%
    • Industrial Properties:
      • Disposed within 1 year: 15%
      • Disposed within 1–2 years: 10%
      • Disposed within 2–3 years: 5%
  5. Stamp Duty on Transfer of Shares
    • Rate: 0.2% on the higher of the purchase price or market value of shares (excluding residential Property-Holding Entities).
  6. Additional Conveyance Duties (ACD) for Property-Holding Entities (PHE)
    • Acquisition of equity interest in a PHE: 41% to 44%
    • Disposal of equity interest in a PHE: 12%
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Personal Income Tax

Individuals (both residents and non-residents) are liable to income tax on income accruing in or derived from Singapore. The tax year aligns with the calendar year, and the system follows a self-assessment approach.

Filing and Payment Deadlines
  • Paper filing: By 15 April.
  • E-filing: By 18 April.
  • Bulk extension by tax preparers: By 30 June.
Notice of Assessment
  • Most taxpayers will receive their Notice of Assessment from the end of April onwards. The notices are issued in batches, so some taxpayers may receive them earlier than others.
  • Payment deadline: The tax assessed must be paid within one month from the date of the Notice of Assessment, unless the taxpayer opts for an installment plan via GIRO (direct debit).
  • If a taxpayer disagrees with the assessment, they can file an objection within 30 days.
Chargeable income (SGD) - Tax rate

From YA2024, two new personal income tax (PIT) rates of 23% and 24% will be introduced on top of the existing progressive tax rates.

  • First $20,000: Income Tax Rate: 0%

  • Next $10,000: Income Tax Rate: 2%

  • First $30,000:

    • Next $10,000: Income Tax Rate: 3.5%

  • First $40,000:

    • Next $40,000: Income Tax Rate: 7%

  • First $80,000:

    • Next $40,000: Income Tax Rate: 11.5%

  • First $120,000:

    • Next $40,000: Income Tax Rate: 15%

  • First $160,000:

    • Next $40,000: Income Tax Rate: 18%

  • First $200,000:

    • Next $40,000: Income Tax Rate: 19%

  • First $240,000:

    • Next $40,000: Income Tax Rate: 19.5%

  • First $280,000:

    • Next $40,000: Income Tax Rate: 20%

  • First $320,000:

    • Next $180,000: Income Tax Rate: 22%

  • First $500,000:

    • Next $500,000: Income Tax Rate: 23%

  • First $1,000,000:

    • In excess of $1,000,000: Income Tax Rate: 24%

Central Provident Fund (CPF)

The Central Provident Fund (CPF) contributions are compulsory for Singapore citizens and permanent residents. Contribution rates vary based on the employee's age.

Key Points on CPF Contributions

  • Contribution Rates for Singapore Citizens and Permanent Residents (PRs):

    • Contributions are required on employment income.
    • For newly granted PRs, graduated contribution rates apply for the first two years, with the option to contribute at higher rates if both employer and employee agree.

  • Contribution Thresholds:

    • Employer contributions start when the employee’s wages exceed $50 per month.
    • Employee contributions start when wages exceed $500 per month.
    • Full contribution rates apply when wages exceed $750 per month.

  • Graduated Contribution Rates for New PRs:

    • For PRs in the first two years, CPF contributions start at a lower, graduated rate and increase over time, eventually reaching full rates in the third year.
CPF Contribution rates (monthly wages > $750)
Employee’s age (years)
By employer (% of wage)
By employee (% of wage)
55 and below
17
20
Above 55 to 60
14.5 (14 before 1 Jan 2023)
15 (14 before 1 Jan 2023)
Above 60 to 65
11 (10 before 1 Jan 2023)
9.5 (8.5 before 1 Jan 2023)
Above 65 to 70
8.5 (8 before 1 Jan 2023)
7 (6 before 1 Jan 2023)
Above 70
7.5
5

Useful Tax Tools

Property Tax Calculator

Calculate the exact amount of property tax you will owe requires your property’s assessed value and the property tax rates based on your property’s address.

CPF Contribution Calculator

Provided by the CPF Board, this tool helps employers calculate CPF contributions, ensuring they meet statutory obligations.

Singapore GST Registration Calculator

Compute your annual taxable turnover and determine whether you are required to register for GST.

Stamp Duty Calculator

Calculates stamp duty on property and shares.