Tel：+86 400 118 5939Address：Room 2810B, Block A, Tianli Central Plaza, Coastal City, Yuehai Street, Nanshan District, Shenzhen, Guangdong Province
Email：info@hyintern.com
+86 400 118 5939
牌照号：TC004750
Tel：+86 400 118 5939Singapore, in the eyes of Chinese people, is more of a tourist destination. In fact, Singapore is known as the Asian business paradise and has created a world-renowned economic myth. Nowadays, Singapore still has strong economic vitality, and with many financial preferential policies, it has also attracted many companies to register their companies in Singapore.
However, establishing a company is simple, and the subsequent maintenance of the company is the main focus, among which tax auditing is the most complex. If the local tax policies are not grasped properly, problems often arise in tax declaration and payment, which can result in serious consequences such as fines or even lawsuits for the enterprise. So what taxes do Singaporean companies need to pay? How should taxes be paid? as follows:
Singapore levies taxes based on the principle of territoriality: Singaporean companies must pay taxes on all income earned in Singapore. There are three common types of taxes for Singaporean companies: corporate income tax, personal income tax, and consumption tax.
1. Corporate income tax
Equivalent to the corporate income tax in mainland China, it needs to be declared annually according to company regulations, and if there is profit, it needs to pay corporate income tax. Starting from the 2010 tax year, both local and foreign companies should be taxed at a uniform rate of 17% on their taxable income. Income tax year (YA): The company taxes its income from the previous fiscal year, which means that the income from fiscal year 2019 will be taxed in 2020.
2. Personal income tax
Equivalent to personal income tax in mainland China, declared annually.
3. Consumption tax
Consumption tax refers to the tax levied on goods and services provided locally in Singapore, as well as on imported goods to Singapore. In some countries/regions, GST is referred to as Value Added Tax (VAT).
Next, the Singaporean company is going to file taxes. Singaporean companies must submit an estimated taxable income statement (ECI) to the tax authorities within three months after the end of the fiscal year. Even if taxpayers do not have taxable income, they must make a zero declaration, which is a pre declaration; The tax authorities will send taxpayers a numbered declaration form C in March each year. After receiving the declaration form, taxpayers will fill it out according to the requirements and submit it to the tax authorities through electronic declaration or mailing; The tax authorities will review the declaration materials submitted by taxpayers and send them a tax payment notice. Taxpayers should pay taxes through bank transfer or other means within one month after receiving the tax payment notice. Otherwise, the tax authorities will impose fines on the unpaid taxes.
Start up companies in Singapore enjoy preferential corporate income tax policies for the first three tax years. Starting from the 2020 tax year and beyond, start-up companies are entitled to a 75% tax reduction for the first 100000 Singapore dollars of taxable income in the first three tax years, and a 50% tax reduction for the 100000 to 200000 Singapore dollars of taxable income. The preferential policies of Singapore's corporate income tax are simply a blessing for entrepreneurial investors. These tax incentives allow investors with limited capital turnover to greatly save on capital costs and create greater profit margins.
Scan QR code to follow 【Hongyuan International WeChat】
Email: info@hyintern.com
Hotline: +86 400 118 5939
