Knowledge base

Withholding tax in Singapore: Royalties

What is Royalty? Royalty is the consideration for the use of, or the right to use any copyright of literacy (Software), or any artistic or scientific work. It consists of patent, trade mark, design or model, secret formula, information or process which is usually a secret and not commonly available…


Shareholder's continuity test: Singapore

Shareholders’ continuity test The shareholders’ continuity test holds that the same shareholders must hold at least 50% of the company’s total shares as at both the relevant dates. If the test was not fulfilled, the losses would be dismissed permanently unless a waiver to fulfil the test is obtained…


Withholding tax in Singapore: Interest

Definition: Whether a payment is considered "interest" depends on the substance of the transaction. The intrinsic nature of said interest is compensation for not being able to use or the delayed payment of money by another. The interest must be charged against a primary sum of money which must be owed…


Royalties in Singapore

The Income Tax Act does not give a definition for royalties. However, royalties can be defined as a payment for the right to use a patent, copyright and other intellectual property. E.g. payment for every book sold or an artist album sold on VCD. Royalties are defined in Article 12 of the OECD Model…


Withholding tax in Singapore - Introduction

Concept of Withholding Tax When income is paid to a non-resident of a country, it is typical of the country to collect tax from the non-resident; the payee is required to withhold tax before paying the net amount to the non-resident. It is a tax subsidised by a non-resident on income derived or deemed…


XBRL filing in Singapore

Since 1 November 2007, companies in Singapore are required to file financial statements with ACRA, and filing financial statements in XBRL. With effect from 3 March 2014, the revised XBRL filing requirements under the BizFinx system apply. What is XBRL filing? XBRL stands for Extensible Business Reporting…


Obtaining an EPass and EntrePass in Singapore

EMPLOYMENT PASS The Ministry of Manpower (MOM) requires foreign highly skilled professionals, Managers, Executives, specialists or entrepreneurs who wish to work in Singapore need an Employment Pass to commence employment. To be considered for an Employment Pass, you must have a fixed monthly salary…


GST Registration in Singapore

Dear Sir, We have received a letter from IRAS dated xx month xxxx asking your company to register for GST as your turnover has crossed the S$1million mark. What is GST? Goods and Services Tax is a tax on the supply of goods and services made in Singapore by a taxable person in the course or furtherance…


The Singapore budget 2014

For all businesses: This year’s budget did not emphasise on significant tax changes. The government wants to restructure the Singapore economy to achieve quality growth. Businesses that make investments in productivity to save manpower or achieve innovative breakthroughs will be actively supported by…


Estimated Chargeable Income (ECI)

What is ECI? ECI means Estimated Chargeable Income. It is an estimate of a Singapore company’s chargeable income for the given Year of Assessment (YA). The amount of ECI declared is based on the amount before the deduction of any exempt amounts under the partial tax exemption or tax exemption schemes…