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Paying Your Taxes (Local/Foreigners)

Understand the key tax issues relevant to start-ups.

Any income derived or received in Singapore is subject to tax. How much tax you have to pay will depend on your business structure, the income you make and the amount of expenses you can deduct.

The taxation system in Singapore is relatively simple in comparison with most developed countries. Once you understand the key concepts and what needs to be done, it will be easy to comply with any tax obligations you have.

What Do I Need To Do First?

One of the key decisions to make after starting your business is to decide on the accounting period. When you choose to end your accounting period will determine your Year of Assessment when it comes to filing and paying your taxes.

You will also need to keep your accounts in order, and keep a copy of all relevant records for at least 5 years.

Further reading
Guide To Filing Taxes

What Are The Key Tax Dates In Singapore?

Tax Date

Individual Income Tax Return for sole-proprietors, partnerships (Form B)

15 April

Partnership Income Tax Return (Form P)

15 April

Companies Tax Return (Form C)

30 November

Companies Estimated Chargeable Income (ECI)

3 months after end of accounting period
Further reading
What Are The Key Tax Dates?

What Taxes Do I Have To Pay?

The income tax you have to pay depends on your business structure. Singapore has excellent tax benefits for small to midsize companies. For the first 3 years from company formation, you pay 0% tax on first S$100,000 annual profits, and about 50% tax on the next S$200,000 annual profits. For profits around S$300,000, the overall tax rate is still a low 17% (Year of Assessment 2010).

If you make payment to non-residents of Singapore, you will need to pay withholding tax. You also pay Goods and Services Tax (GST) when you buy goods and services from GST-registered traders.

Further reading
Overview of Taxes in Singapore

Are There Any Tax Reliefs For Foreign Income Or Foreign Businesses?

You will be able to claim Double Tax Relief for taxes already paid overseas as long as Singapore has a double tax agreement with that country and you are considered a Singapore-resident company.

A company is resident in Singapore if the control and management of its business are exercised in Singapore. You can also avoid paying tax for income derived in Singapore if you can prove you are a tax resident in your home country.

Further reading
Foreign Income & Foreign Businesses