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Singapore Corporate Tax[1].pdf

Published Mar 27, 2013 in Business & Management
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Last updated on February 18, 2013 New Startup Companies * for First 3 Years of Assessment For All Other Companies - Partial Tax Exemption TAX-FREE DIVIDEND Tax paid by a company on its chargeable income is the final tax and all dividends paid to its shareholders are exempt from further taxation. 0% SINGAPORE CORPORATE TAX RATES * 223 224 Singapore222s tax regime recognizes the importance of easing cashflow for startup companies in their initial years of operation. Therefore, Singapore extends support in the form of sizeable exemptions. Chargeable Income (SGD) Exemptions Effective Tax Rate First $100,000 75% 4.25% Next $200,000 50% 8.50% Above $300,000 Nil 17.00 %

Last updated on February 18, 2013 Chargeable Income ($) Estimated Tax (S$) Effective tax rate 100,000 8,075 8.08% 200,000 16,575 8.29% 300,000 25,075 8.36% 400,000 42,075 10.52% 500,000 59,075 11.82% 600,000 76,075 12.68% 700,000 93,075 13.30% 800,000 110,075 13.76% 900,000 127,075 14.12% 1,000,000 144,075 14.41% 5,000,000 824,075 16.48% 10,000,000 1,674,075 16.74% Chargeable Income ($) Estimated Tax (S$) Effective tax rate 100,000 0 0% 200,000 8,500 4.25% 300,000 17,000 5.67% 400,000 34,000 8.50% 500,000 51,000 10.20% 600,000 68,000 11.33% 700,000 85,000 12.14% 800,000 102,000 12.75% 900,000 119,000 13.22% 1,000,000 136,000 13.60% 5,000,000 816,000 16.32% 10,000,000 1,666,000 16.66% NEW STARTUP COMPANIES FOR FIRST THREE YEARS OF ASSESSMENT ALL OTHER COMPANIES PARTIAL TAX EXEMPTION Singapore Corporate Tax | Singapore Budget 2012 | FAQS on Singapore Corporate Taxation Due to tax exemption schemes, the effective tax rates in Singapore are one of the lowest worldwide and unlike any other jurisdictions, Singapore is widely respected and well-recognizeable for its rule of law, transparency and world-class standards. FULL/PARTIAL TAX EXEMPTION

Last updated on February 18, 2013 CAPITAL GAINS TAX Nature of Income Tax rate indebtedness 15% 10% 10% 15% Technical assistance and service fees 17%* Management fees 17%* Time, voyage and bareboat charter fees for the charter of ships 0-2% 20% Proceeds from sale of any real property by a non-resident property trader 15% 10% SINGAPORE WITHHOLDING TAX Gains that are of a capital nature are not taxed in Singapore. However, where there is a series of transactions or where the holding period of an asset is relatively short, IRAS may take the view that a business is being carried on and attempt to assess the gains as trading profits of the company. withheld amount to IRAS. Such amount withheld amount is called Withholding Tax. The withholding tax rates apply when the income is not derived by the non-resident person through payment are as follows:

Last updated on February 18, 2013 OPTION 1: CASH PAYOUT OF UP TO S$60,000 To support small and growing businesses which may be cash-constrained, to innovate and improve productivity, businesses can exercise an option to convert their expenditure into a non-taxable cash payout. qualifying activities into cash payouts. Businesses that can opt for the cash payout are sole-proprietorships, partnerships, companies Eligibility criteria 037036035034033032031030 035035027036026025024036 023031022021020017016rf031022027036013r020017022n036 036 021t035036032b027021 036030 035b020 007023f006035036016r027017022035027027 036 031033035020b f031022027036017022036005017022 nb 033031020 035 004003033035022013017021r020 035036017022036b022 030036031002036021t035036 027017003036001rb032017002030017022n036b020 035b027 037036 035034033036032031035030027 026025024023022021020023017027 016 r025032f022035017 024 013036 021032017032017n027 016tf035017030032024025 036035 034 b027007027006027 016tf035017030032024025 036035 034 026033r025032034032020023017027023005027 004017024 035003003035033024025021003027 037036 023f035036024002 b 035n032034024 036021 020023017027 023005027004017024 035003003035033024025021003027 037036 023f035036024002 006035034032n017027 016tf035017030032024025 036035 034 001001027025021003032005002032017n027016tf035017030032024025036035 034

Last updated on February 18, 2013 Qualifying activities Brief description of qualifying expenditures under the PIC Total deductions/allowances under the PIC (as a % of qualifying expenditure) Acquisition or Leasing of Prescribed Costs incurred to acquire/lease prescribed automation equipment 400% allowance or deduction for qualifying expenditure subject to the expenditure cap, 100% allowance or deduction for the balance expenditure exceeding the cap Costs incurred on: Workforce Development Agency All external training. Acquisition of Intellectual Property Costs incurred to acquire IPRs for to media and digital entertainment Registration of Intellectual Property Costs incurred to register patents, trademarks, designs and plant variety Costs incurred to create new products and industrial designs where the activities are primarily done in Singapore Costs incurred on staff, costs and consumables for qualifying R&D activities carried out in Singapore or overseas, if the R&D done overseas is related to the taxpayer222s Singapore trade or business 400% tax deduction for qualifying expenditure subject to the expenditure cap*. For qualifying expenditure exceeding the cap for R&D done in Singapore, deduction will be 150%. For balance of all other expenses, including expenses for R&D done overseas, deduction will be 100% Notes: Total expenditure cap for YA 2011 and YA 2012 - $800,000 for each of the six qualifying activities. Total expenditure cap for YA 2013 to YA 2015 - $1,200,000 for each of the six qualifying activities. Expenditure S$100,000 S$100,000Deduc037ons S$100,000 S$400,000TAX SAVINGS S$17,000 S$68,000Be fo re PIC: 037036035035 034033032031 030027 026025036024023033034024024034024026022021033026032030020023022021031031030026017034017036022032026032016034023035026 034r 020034033024034024026021032026 022f024032026023013034013026nttb026021024026020021035032026f007026032016034026006034033034035 021031026032 021r026035 034006023005034013026 004021 r026024021 003023033006024026002026001ntt027ttt026r026n201b A036 er PIC: 215036024023033034024024034024026022021033026033f217026034033220f030026235ttb026017034017036022240f033026f033026032016034026022f024 032026f007026 032016034026024021005034026034 r020034033017023032036035 034013 004021 r026024021 003023033006024026002026001235tt027ttt026r026n201b OPTION 2: TAX CREDIT FOR UP TO S$1.2M FOR EACH OF THE QUALIFYING ACTIVITIES

RIKVIN PTE LTD 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Main Line : (+65) 6320 1888 Fax : (+65) 6438 2436 Email : Website : Reg No 200100602K EA License No 11C3030 This material has been prepared by Rikvin for the exclusive use of the party to whom Rikvin delivers this material. This material is for informational purposes only and has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. Where the source of information is obtained from third parties, Rikvin is not responsible for, and does not accept any liability over the content. Helpful Links: Company Registration Singapore Work Visas Business Services Accounting Services Offshore Company