Tax laws Singapore
Singapore's tax system is characterized by its simplicity and competitiveness, aiming to attract both individuals and businesses. Key components include:
1. Individual Income Tax:
Progressive Tax Rates: Singapore employs a progressive tax system for residents, with rates ranging from 0% to 22% as of the Year of Assessment 2017.
Taxable Income: Tax is levied on income earned in Singapore and certain foreign income received in Singapore. Income earned outside Singapore and not received in Singapore is generally exempt from tax.
2. Corporate Income Tax:
Flat Rate: Both local and foreign companies are taxed at a flat rate of 17% on their chargeable income. citeturn0search9
Exemptions: Foreign-sourced dividends, branch profits, and service income are exempt from tax if the foreign headline tax rate is at least 15% and the income has been subjected to tax in the foreign country.
3. Goods and Services Tax (GST):
- Standard Rate: GST is a consumption tax levied at a standard rate of 7% on most goods and services supplied in Singapore.
4. Property Tax:
- Tax on Owners: Property tax is levied on property owners based on the annual value of their properties. The rates vary depending on whether the property is owner-occupied or rented out.
5. Estate Duty:
- Abolition: Estate duty was abolished in Singapore in 2008.
6. Tax Administration:
- Inland Revenue Authority of Singapore (IRAS): IRAS is the statutory board under the Ministry of Finance responsible for tax collection and administration.
Recent Developments:
- Tax Rebates and Programs: In February 2025, Singapore introduced a 20% tax rebate for primary listings and a S$5 billion Equity Market Development Program to boost its stock market.
For comprehensive and up-to-date information, consulting the IRAS or a tax professional is advisable.
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