Everyone in Singapore, including companies and individuals, have to pay taxes according to the tax structure imposed by the Singapore government. Therefore, it also becomes mandatory to provide the tax returns as per the amounts. After these amounts are paid, what they have to pay will be calculated.
Taxpayers have to use various tax planning methods to claim deductions and exemptions in Singapore. But how do we do that? In this article, we help you understand the tax optimization options that you can use in the city-state.
1. Taxes payable by individuals and companies in Singapore:
Individuals have to pay the income tax applicable to their personal income. The companies have to pay tax applied on the business profits with the residency status of the payers. Among the other taxes to be paid, the property tax is the most important one.
Tax planning methods are used in Singapore to find a feasible way to reduce tax liabilities in a legally correct way. The Inland Revenue Authority in Singapore (IRAS) offers ways to exempt taxes. This can be used as an effective tax optimization tool to reap various benefits.
In fact, Singapore is one of the most vital financial hubs within Southeast Asia to provide enhanced confidence to all investors.
2. Tax planning services that we provide:
We offer various tax planning solutions in Singapore as below:
- Customized solutions in the process of drafting and submitting income tax returns along with IRAS.
- Offering support to define the suitable tax deductions and exemptions you are eligible to receive.
- Tax benefit optimization according to whether you are an individual or an enterprise.
- Access to tax optimizations and benefits according to the domain your company functions in.
- Various other tax planning options for private and corporate requirements.
3. Tax implications for foreign citizens in Singapore:
People who migrate to Singapore can reap various tax benefits in this country. These benefits are available to the residents. The most important benefit is that they can avail personal tax exemptions based on the earnings they make.
The personal income tax is levied with progressive rates. The lowest is 0% and the highest is 22%. This is still low in comparison with other jurisdictions. Therefore, a double tax treaty can help you plan tax effectively like no dividend tax.
4. Tax planning for companies in Singapore:
When we discuss tax optimization, companies are at the highest advantage. This is because the government authorities offer tax incentives to the companies that operate in Singapore. But, to make these benefits available, you have to meet certain criteria.
These factors are very stringent and that is why you need our services to efficiently plan taxes in Singapore. We offer Singapore Tax Advisory And Compliance Services for local as well as foreign investors who plan to maximize their profit levels. Our team helps take advantage using the legal path that IRAS has kept open.
To execute this, we run an in-depth analysis of your financial accounts along with other aspects of the benefits you are entitled to.
Here are the basic plans that the Singapore authorities have formed for companies that can be utilized for tax planning:
- First is Startup Tax Exemption. This was formed to help startup companies. It offers complete tax exemption on the first 100000 SGD. This is for the first three years of all the financial activities.
- Partial Tax Exemption provides a whopping 30% of corporate tax exemptions. But it should not exceed SGD 20000 per financial year.
- The Productivity and Innovation Credit offers tax allowances up to 400% for up to 400000 SGD that you spend on investments of your company.
IRAS offer various tax benefits but there are other specific agencies like the Economic Development Board. It sends the essential documents to the IRAS. Tax planning can be beneficial in Singapore if you know the compliances to obtain the benefits. Contact us for tax planning for your company or your personal finances tax.