It is not surprising that the World Bank has chosen this city state as the easiest place to do business. Singapore has a very efficient infrastructure, a stable socio-political climate and one of the lowest corporate tax rates in the world.
As the Singapore government supports entrepreneurship, incorporating a company in Singapore can be done quickly and efficiently, even without the physical presence of the shareholder(s). The professional and experienced team at BlueMeg not only has the legal expertise to assist you in this process but also uses the latest technologies to enhance the clients’ experience as much as possible.
Executive summary
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Singapore by the numbers
| Corporate Profit Tax | 17% (0% if profits have foreign source) |
|---|---|
| Income tax | Progressive 2% to 22% |
| Tax rate on dividends | 0% |
| Tax rate on capital gains | 0% |
| Tax exemptions | For Year of Assessment 2020 onwards, there is a 75% exemption on the first $100,000 of normal chargeable income; and a further 50% exemption on the next $100,000 of normal chargeable income. |
What you need to know
- Your company requires an individual resident director. This person can be a Singapore citizen or a Permanent Resident. Corporate directors are not allowed in Singapore. BlueMeg provides resident director services.
- There are two mandatory tax filings to keep in mind:
- The Estimated Chargeable Income (ECI) filing, due 3 months after your financial year end; and
- The Corporate Tax Return filing, due each year in November (for the preceding financial period).
- An Annual General Meeting (AGM) has to be convened every year (i.e. 6 months from the financial year end). Thereafter, the Annual Return has to be filed with the Accounting and Corporate Regulatory Authority (ACRA) within 1 month from the AGM date (i.e. within 7 months from the financial year end).
