Taxation for Foreign Investors in Singapore

A presentation brought to you by Singapore-Accounting.com

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Taxation Requirements in Singapore

• Taxation in Singapore applies both to local and foreign individuals or companies.

• Taxes are levied on a territorial basis and imposed on income derived from the country.

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The Taxable Income in Singapore

• Residents and non-residents are taxed on their income derived from Singapore.

• The income remitted or deemed remitted to Singapore is also taxed. This includes profits, gains, dividends and interest.

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Foreign Investor Taxation in Singapore

• The basis for foreign investor taxation in Singapore is the income derived from the city.

• Income in Singapore includes those gains and profits derived from an activity or a profession as well as gains from employment or pensions.

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The Employer’s Contribution in Singapore

• Foreign employees are not required to make a contribution to the Provident Fund. The employer’s contribution is exempt from taxation in certain cases.

• Investors who decide to hire employees can request accounting services in Singapore for payroll and other related matters.

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Taxes on Dividends in Singapore

• Dividends paid by resident companies in Singapore are exempt from taxation.

• Dividends that have a foreign source are taxable under certain conditions.

• Our accountants in Singapore can give you more details on the tax treatment of dividends.

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Double Tax Treaties Signed by Singapore

• The double taxation agreements concluded by Singapore with various other countries allow for a reduced withholding tax rate and provide a framework for the taxation of profits.

• Singapore has concluded such treaties with China, Malaysia and many other countries.

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Individual Taxation in Singapore

• The taxation system for individuals in Singapore is also based on the income derived from the city. Certain investment income can be exempt from tax.

• The Tax Code is a source for the principles of individual taxation and it also regulates the reporting requirements.

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Taxation Rates in Singapore

• Residents in Singapore are taxed at progressive rates, from 2% to 22%. The income derived from employment for non-residents is taxed at a flat rate.

• Entrepreneurs can benefit from tax incentives, under certain conditions.

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Accounting Services in Singapore

• Foreigners who want to invest in Singapore can choose to work with an accounting firm in Singapore that can provide adequate services.

• You can contact our accountants in Singapore for more details on specific services.

Thank You for Your Attention!

For more information please contact us at:

 + 852 8191 3385 (for international clients)

office@singapore-accounting.com

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