1、What is the corporate tax rate in Singapore?
The current corporate tax rate is 17%. Full and partial tax exemptions may be applicable for taxable income up to S$300,000.
2、What is the difference between a resident and non-resident Singapore company?
In Singapore, the tax residence status of a company depends on where the control and management of its business is exercised. A company is tax resident in Singapore if the control and management of its business is exercised in Singapore.
The basis of taxation for a resident company and non-resident company is generally the same. However, there are some benefits that a resident company can enjoy that a non-resident would not, for example benefiting from any applicable Avoidance of Double Taxation Agreements and various tax exemptions.
3、What is the difference between full exemption and partial exemption for Singapore start-ups?
Full corporate tax exemption is on normal chargeable income up to $100,000 for the first three consecutive tax filing years. Thus is only granted to start-ups that meet the following criteria:
· Singapore incorporated company
· Tax resident in Singapore for the applicable year
· Have no more than 20 shareholders in that year,
· At least 10% of the shareholders must be individuals
· Should a company not meet the requisite criteria, it would still be eligible for a partial exemption.
4、Will a Singapore Branch qualify for any start-up exemption?
No, a Singapore branch is not eligible for start-up exemption. It may however still enjoy a partial tax exemption on its chargeable income.