Overview of taxation for companies in Singapore
Arguably, the most important attraction for Singapore-based companies remains the city-state’s quasi-territorial tax system, which means that tax is imposed on all income accrued in or derived from Singapore, as well as on all foreign-sourced income remitted to the country, with certain qualifying exemptions (dividends, branch profits, service income).
There is neither any capital gains tax in Singapore nor is there any withholding tax on dividends. There is also no one-tier corporate tax system, capital duty, capital acquisitions tax, inheritance or estate tax, or even net worth/wealth tax in the city-state.
Importantly, advance rulings on taxation are possible too.
Moreover, there are no significant restrictions on foreign exchange transactions and capital movements in Singapore, which means that funds may flow freely into and from Singapore. While the government imposes certain restrictions on the lending of Singapore Dollars (SGD) to non-resident financial institutions, these restrictions do not apply to the lending of SGD to individuals and non-financial institutions, including corporate treasury centres.
Read more about corporate tax filing at Rikvin.com.
