Singapore has a favorable taxation system which applies progressively to individuals and a flat rate to companies in the city-state. Foreign companies will be taxed on the income generated in Singapore only, which can lead to higher rates. This why foreign investors usually choose to open a Singapore company rather than operate through companies established in their home countries. For company registration services in Singapore you can rely on our agents.
Those above are the main taxes imposed in Singapore, however the Inland Revenue Authority (IRAS) also levies what are called withholding taxes. In other countries withholding taxes are known as taxes made on certain payments to non-residents, or even deductions at source.
Our Singapore company formation experts can offer more information on the taxation system applicable in the city-state.
In order to be applied, the withholding taxes in Singapore must first be determined. As mentioned above, an withholding tax is related to a payment made to foreign companies by local ones. The types of payments attracting a withholding tax in Singapore are:
Section 12 in the Income Tax provides a definition for structured products on which a Singapore company must pay withholding taxes.
You can request our accounting services for the computation of withholding taxes in the city-state. Our local agents can also assist with the company registration procedure in Singapore.
The following rates apply when paying withholding taxes in Singapore:
In order to avoid the payment of withholding taxes twice, Singapore has signed numerous double taxation agreements.
You can contact our company formation consultants in Singapore who can offer more information on the payment of withholding taxes in the Republic.