Overview of Tax System in Singapore
All of the tax items in Singapore are the national taxes. And the main taxes include the following taxes.
・ Corporation income tax
・ Income tax
・ Property tax
・ Good service tax
・ Stamp tax
・ Tariff tax
・ Foreign employees income tax
・ Technology development tax
・ Tax related automobile (registration tax, additional registration, road tax)
The following taxes are the main items of taxes in Singapore.
In the case of calculating income tax, the scope of tax will be different based on the targets are the residents or non-residents. Hence, it is necessary to judge the persons are residents or not firstly.
Corporation income tax
The corporation place of residence is decided by the principle of management and control right. The company formation based on Companies Acts of Singapore is treated as residential corporation even invested by foreign companies. However, no matter a company set up based on Companies Acts of Singapore or not, if the General Meeting and Board of Directors meeting is conducted in foreign country and the management or operations are conducted in foreign country, it will be treated as a non-resident corporation.
In the tax system of Singapore, residents have the good treatment. In the opposite way, non-resident cannot apply for the tax-free of foreign tax at source income, tax deduction or tax free of taxation at source based on dual tax avoidance regulation. In addition, the judgment of residents or non-residents will be conducted every tax year.
Goods Service Tax
Goods Service Tax is an indirect tax that is payable for money and goods or service in the demotic transactions. GST is raised to 7% from July 1st 2007. The persons who will have the obligation to pay GST satisfy the following condition. The sales of corporation exceeded 1,000,000 dollars in any past year and it is necessary to register to IRAS as taxation payer.
The property tax is payable for the property of residence. And the amount of tax is calculated by accumulated tax rate.
It is a tax that for the contract of property transaction and shares transaction. And it is also for the shares of corporation and demotic property in Singapore.
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