Singapore has been the center of interest for most of the corporations since the government attempts to retain corporate income taxes as low as possible and provides various tax incentives to affect investors ahead and purchase their business world. The nation works on individual-tier territorial plan that is centered on the flat rate corporate tax. The typical business friendliness and effective prices would be the two dominating elements to influence Singapore’s economic growth, stability of payment and foreign investment.
Let’s will have a glance at how income rates are used and what will be the possible tax incentives on corporate level. For more additional information about Singapore corporate tax rate visit here.
Single-level Tax System
Ever since January 1st 2003, Singapore has been dealing with the one-level corporate system that keeps stakeholders secure from double taxation, and thus the company is likely to pay tax on its taxable income whereas, individual investors are exempted by paying tax. Also, the capital gains on-investment are not taxable i.e. gain on forex, sale of fixed assets etc.
Corporate Tax and Basic tax Exemption
- Headline Tax Rate
The authority in the Singapore has fixed the headline corporate tax rate at 17%. With all the aim to reduce corporate tax in Singapore, the government has been trying to reduce the tax rate and they’re effective in taking it down from 26% (in 1997-2000) to 17% (from 2010 and onwards.
- General Tax Incentives
Firms are presented eligible to enjoy the following basic tax credits/exemptions, while running in Singapore. After using these tax exemptions, the corporate tax charge for mid-sized small or organizations is reduced