Asiabizservices Explains Singapore Tax Residency Details
A company that helps foreign individual, entrepreneur or a business professional who wants to setup a Singapore company as an individual.
by Robert Leshing Sunday, December 12, 2010
Asiabizservices says that resident companies newly registered are exempted from corporate taxes. “Revenues accumulated at S$100,000 are not taxed for the first 3 years of assessment. On the next S$200,000 company profit, the tax rate is cut by 50% or set at 8.5%.”
To qualify for such tax exemption, companies besides being a resident must have a number of shareholders not more than 20 and the shareholders should all be a natural living person. And one of them must own a minimum of 30% of the company shares.
On the fourth year of its existence, resident companies are subject to different corporate tax rates depending on the amount of revenues. Asiabizservices continues on its elaboration, “On the first S$300,000 accumulated revenues, the corporate tax rate is 8.5% and the revenues more than that are subject to a flat rate of 17%.”
Based on section 13, item 8 of the Income Tax Act, resident companies are exempted from paying taxes on their foreign-sourced dividends, foreign-sourced service income, and foreign branch profits, provided that such profits are already taxed by not less than 15% by the foreign jurisdiction.
Further, Singapore entered into Double Tax Agreement to allow companies relief access from double taxation through tax credit, reduced tax rate, or tax exemption. Of late, Singapore upholds tax treaties with 50 different countries in Asia Pacific.
Among the benefits of Double Tax Agreements are clear definition of the taxing right of each signatory country, prevention of international tax evasion, eligibility to claim for relief for taxes paid overseas, and definition of jurisdictional authority on cross-border transactions.
Hence, resident companies are not taxed for withholding on dividend income distributed among the shareholders. Such is also in accordance to Singapore’s single tier taxation system. Also, there is no capital gains tax in Singapore.
Foreigners running a business in Singapore may find it a relief to hire a company to assist them in complying with the legal requirements such as tax payment and filing of annual returns with ACRA. Should the companies become eligible for any tax incentive, exemption, or relief, it would be best that they knew about them clearly.
Asiabizservices has been established with the objectives of helping Singapore reach its economic goals through providing assistance to foreign investors and entrepreneurs such as company registration and compliance with requirements. It also specializes in secretarial and accounting services.
About the publisher:
Since its inception, Asiabizservices assists foreign entrepreneurs establish a company in Singapore. Among its specializations are corporate services, accounting services and nominee services.
Asiabizservices does not waver in its goal to establish its reputation in the industry by helping investors register a company in Singapore. Such efforts pay off as the company is among the prestigious corporate solutions providers in Singapore.
Among its specializations are company registration, whether as a sole proprietorship, private limited, limited liability partnership; offshore company formation, incorporation of foreign companies either as a branch or subsidiary office, and Singapore accounting services including payroll preparation.
Asiabizservices is the leading provider of Singapore Company Incorporation services and has successfully helped thousands of both local and foreign entrepreneurs Incorporate a Singapore Company.
For more information:
address: 120 Telok Ayer Street Singapore 068589
Singapore Company Formation Service, We provide company registration,incorporation, immigration, accounting and taxation services to entrepreneurs and businesses worldwide.
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