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What are the tax benefits of registering a Singapore company


With the development of overseas trade, more and more entrepreneurs choose to register overseas companies to develop their business, and Singapore has become one of the hot registration places for overseas companies by virtue of its political and economic advantages. After the registration of Singapore company, tax planning and annual review are needed to ensure the normal operation of Singapore company. What are the tax advantages of Singapore companies?

Registered Singapore company

Singapore has few corporate taxes

Singapore has adopted a unified tax system to avoid the central and local taxes, which mainly include six taxes: corporate income tax, personal income tax, consumption tax, real estate tax, stamp tax, vehicle and ship tax. For a Singapore offshore company not operating in Singapore, if it wants to become a non resident enterprise in Singapore, it usually only involves corporate income tax, and only involves stamp tax when shares are transferred.

Singapore low tax rate

Singapore's corporate income tax rate is 0-17% (China 25%), Singapore's personal income tax rate is up to 22% (China 45%), and there are a series of tax relief benefits.

In Singapore, the corporate income tax system of single level regional unified tax rate is adopted. For the stakeholders under the single level enterprise income tax system, there is no new tax on the dividends paid by the company to its shareholders. In addition, Singapore has reached double taxation agreements with more than 70 countries in the world, including Japan, China, Malaysia and the UK. It helps to minimize the tax burden of the holding company structure by providing for avoidance of double taxation, reduction of withholding tax and preferential tax system between Singapore and treaty countries.

Singapore corporate tax preference

The corporate income tax rate of Singapore companies is 17%, and part of the normal taxable income is up to S $300000 (about RMB 1.5 million), as follows:

75% of the normal taxable income of S $10000 and 50% of the normal taxable income of S $290000 will be exempted. Therefore, the effective tax rate of the first S $300000 normal taxable income is about 8%. The taxable income exceeding 300000 yuan shall be fully taxed at the current tax rate of 17%.

Frequency of tax declaration of Singapore companies

After the registration of Singapore company, accounting, auditing and tax declaration are the key links. Similar to Hong Kong, Singapore companies need to report and pay taxes in the first year of registration, the first fiscal year of the second year, the third year or the fourth year. Compared with the domestic tax declaration every month and every quarter, it has obvious advantages.

Government supports enterprise development

Singapore government will give strong support to Singapore companies in the financial budget every year, for example, the financial budget of Singapore in 2019. In order to enhance the attraction of enterprises to hold and commercialize intellectual property rights, all enterprises can enjoy and write down the capital expenditure allowance for acquiring intellectual property rights. "Capital expenditure" for acquiring intellectual property does not include legal fees, registration fees, stamp duty and other fees related to acquiring intellectual property.

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