In Singapore, key tax compliances include, but not limited to, Corporate and Personal income tax, Goods and Services Tax and others. For the case of Goods and Services Tax (GST), if your annual turnover exceeds SGD 1 million, the compliances include submitting annual tax returns, keeping accurate financial records, and adhering to anti-avoidance provisions to prevent tax evasion. The Inland Revenue Authority of Singapore (IRAS) has implemented various measures to ensure tax compliance, including audits, penalties for non-compliance, and the use of technology to streamline tax administration. It is important to note that tax laws and regulations in Singapore are subject to change, so it is always advisable to stay up-to-date with the latest requirements and seek professional advice as needed.

Income derived by companies in Singapore is imposed at a flat rate of 17%. A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available. The start-up exemption is not available to property development and investment holding companies.

Please visit the link for more information on the Basic Overview of Corporate Income Tax

Singapore businesses are required to pay various forms of taxes as regulated by the Inland Revenue Authority of Singapore (IRAS). These include corporate tax, goods and services tax (GST), property tax, and stamp duty, among others.

Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is remitted or deemed remitted to Singapore.

*Normal chargeable income refers to income to be taxed at the prevailing Corporate Income tax rate of 17%

In Singapore, corporate income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending (FYE) in the year preceding the YA. For example, in year 2024 you will be filing corporate tax return for your company’s financial year that ended anytime between January 1, 2023 to December 31, 2023. Your company’s accounts are prepared up to the FYE each year. 

Estimated Chargeable Income (ECI) is an estimate of your company’s taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).  In order for you and your company to stay compliant with Inland Revenue Authority of Singapore (IRAS), every company is required to submit an ECI for the Year of Assessment within 3 months after the end of its financial year.

If your company has no chargeable income or incurred losses, you will still have to file a ‘NIL’ ECI. In addition, if your company has more than S$5 million of revenue for the year, but has no chargeable income, you will need to submit ECI.

Submission of ECI may be waived if certain conditions are satisfied. 

All Singapore incorporated companies are required to file a tax return on an annual basis. Although the company is making losses, the losses still have to be submitted via tax return to IRAS. Subject to certain conditions, the losses can be utilised to offset against future profits of the company.

The due date for corporate tax filing (e-filing) for Singapore companies is 30 November. The company has to file a complete set of returns including Form C, audited/unaudited accounts, and tax computation. The Form C is a declaration form for a company to declare its income whereas tax computation is a statement showing the adjustments to the net profit/loss as per the accounts of a company to arrive at the amount of income that is chargeable to tax.

Residents and non-residents of Singapore are expected to file their taxes in mid-April every year with the Inland Revenue of Singapore (IRAS). You can do so online or by mail.

If you are filing your tax return online, the deadline for filing is April 18th. For online tax return filing, you will need a SingPass or IRAS Unique Account (IUA). If you are filing your tax return by traditional mail, then the deadline is April 15th.

You can claim deduction for expenses that are wholly and exclusively incurred in the production of company income.

To qualify for the deduction, the expenses must:

• Be revenue focus in nature. This covers normal day-to-day expense but excluding capital expenditures
• Not be prohibited under the Income Tax Act
• Have actually been incurred. (Contingent liability should not be allowed for tax deduction)

Singapore has adopted a single-tier corporate income tax system, which means there is no double-taxation for stakeholders. Tax paid by a Singapore tax resident company on its chargeable income is the final tax and all dividends paid by a company to its shareholders are exempted from further taxation.  Foreign dividend may be exempted if certain conditions are satisfied. 

Payment of director's fee does not require the company to contribute CPF and SDL (Skills Development Levy). This is because, director's fee is deemed as a payment for the contract for service and should be considered as an employee's remuneration. However, if the directors of the company are also engaged under a contract of service, CPF contributions are payable on the salary received.

Director fee is not paid by virtue of employment. It is paid to the director in the capacity as a director of the Board of Director.  As such, Director fee is taxable.  Director fee paid to non-resident director is subject to withholding tax at 24%.  

Generally, people who stay within Singapore for at least 183 days in a calendar year are considered a tax resident. However, they may also be considered as resident under some other factors.  Staying for lesser than 183 days may also be subjected to tax, as non-resident. 

Short-term employment for 60 days or less within a calendar year may be exempted from tax. 

In Singapore, a company is required to register for Goods and Services Tax (GST) when its taxable turnover at the end of the calendar year is more than $1 million or it expects its annual taxable turnover to exceed $1 million within the next 12 months. However, companies may also be required to register for GST under other factors.  Failure to register may result in hefty fines and legal consequences. It's important for businesses to understand their GST obligations to avoid any penalties and ensure smooth compliance with tax laws.

Companies may also opt for voluntary registration. 

If your total revenue is more than S$1M and 90% of which is generated offshore, then your company must apply for a GST Exemption (GST F2 application) with IRAS to defer the need to conduct ongoing GST compliance.

There are two conditions to be satisfied for the above exemption:

• The proportion of your zero-rated supplies over total taxable supplies exceeds 90%
• You would be in a net refundable position had you been GST-registered

Going forward and in order to maintain this exemption, your company will need to constantly monitor your total offshore/international revenue to ensure that it continues to form at least 90% of your total revenue allocation.

At any time, if your offshore revenue drops below 90% (e.g., consistently for 3 months), then you need to inform IRAS and register for GST as soon as possible. It is also likely that IRAS will backdate the effective date of GST registration to the date where the offshore/international sales falls below 90%.

If your company is GST registered, it means you will need to raise invoice with 9% GST for all local Singapore customers. Overseas customers are still subjected to GST at 9% for goods or services supplied in Singapore. Only goods for export and qualifying international services can be zero-rated (0% GST).

The GST that you charge and collect is known as output tax. Companies can also claim GST input for local suppliers’ invoices and will have to file for GST on a quarterly basis.