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[ESTABLISHING A BUSINESS ENTITY IN SINGAPORE]
The following gains are generally not taxable: (1) gains derived from the sale of a property in Singapore as it is a capital gain. (2) profits or losses derived from the buying and selling of shares or other financial instruments (including digital tokens) are generally viewed as personal investments.
services in Singapore. Supplies that are exempt from GST include:- (1) provision of certain financial services; (2) sale and lease of unfurnished residential properties; (3) importation and local supply of investment precious metals (IPM); and (4) the supply of digital payment tokens (with effect from 1 January 2020). The prevailing GST rate is 9% from 1 January 2024. GST that is incurred when purchasing from GST- registered suppliers or importing goods into Singapore (input tax) can be claimed during the accounting period that matches the date shown in the tax invoice or import permit. Some of the conditions which must be satisfied to claim input tax include: (1) the goods or services must have been or will be used for the purpose of the business; (2) local purchases must be supported by valid tax invoices addressed to the business, or simplified tax invoices at the time of claiming the input tax; (3) imports must be supported by import permits that show the business as the importer of the goods; (4) the input tax must be directly attributable to taxable supplies; and (5) the input tax claim is not disallowed under any relevant regulations. Tax residency Companies are generally taxed in the same manner regardless of whether they are tax residents. However, non-resident companies are not able to enjoy certain benefits available
(3)
payouts from insurance policies as they are capital receipts.
The following dividends are not taxable: (1)
Dividends from a Singapore resident company (excluding co-operatives) under the one-tier corporate tax system (the tax paid by the company on the chargeable income is the final tax). Foreign dividends received in Singapore by resident individuals (except those received through a partnership in Singapore which may be exempt from Singapore tax if certain conditions are met). Income distribution from Real Estate Investment Trusts (REITs), except those received through a partnership in Singapore, or from the carrying on of a trade, business or profession in REITs.
(2)
(3)
Corporate Tax The current corporate tax is a flat rate of 17% on chargeable income. Goods and Services Tax (GST) Businesses with an annual turnover, or expected to have a turnover, exceeding SGD 1 million over a period of 12 months must register with the Inland Revenue Authority of Singapore (IRAS) and charge and collect GST on their supplies which must be paid to IRAS. GST is a consumption tax levied on the import of goods and almost all supplies of goods and
ILN Corporate Group – Establishing a Business Entity Series
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