Taxation in Singapore include Corporate Tax, Goods and Service Tax (GST), Property Tax and Individual Income Tax.
Individual Income Tax in Singapore
Individual Income Tax in Singapore is basically of three types, which are as follows:
- Resident Individual
- Not Ordinarily Resident (NOR)
- Non-Resident Individual
An individual in Singapore will be regarded as Resident Individual if he has been staying in Singapore for not less than 183 days in a calender year. A resident individual in Singapore will get personal reliefs. The income of the individual will be taxed at an increasing (graduated) rate from 0% to 22%.
An individual will enjoy NOR (Not Ordinarily Resident) status, if he is a resident of Singapore for a particular year of tax assessment and at the same time, he is not a resident of Singapore for three successive years of assessment immediately before that year of tax assessment.
A resident NOR taxpayer will enjoy tax concession on the portion of his Singapore employment income that is equal to the number of days the individual has spent outside Singapore for the purpose of business.
An individual in Singapore will be treated as a non-resident, if he is in Singapore for not more than 182 days in a calender year. For being a non-resident in Singapore, the individual will only be taxed on all his income earned in Singapore.
Goods and service Tax in Singapore
The Goods and Service Tax (GST) in Singapore is an indirect tax, which is imposed on the import of goods and services. On 1st April, 1994, the rate of Goods and Service Tax in Singapore was 3% and on 1st July, 2007, the rate of GST was 7 percent.
Corporate Tax in Singapore
The government of Singapore imposes Corporate Tax on the income earned by the Company in Singapore. Corporate Tax will also be levied on the overseas income of the company that is received in Singapore.