Singapore Tax Fundamentals

Basic concept of Singapore corporate tax

  1. What income is subject to tax?
    1. Definition as per ITA s10 (1)
  2. Tax exemptions for foreign income
    1. Conditions per ITA s13 (9)
    2. Treatment under ITA s13 (12)
  3. Deemed received in Singapore concept
    1. Clarification under s10 (25)
  4. IRAS definitions
    1. Year of assessment
    2. Basis period
    3. Statutory income
    4. Assessable income
    5. Chargeable income
  5. Commencement of trade and tax treatment
    1. A first accounting period more than 12 months but a tax reporting period less than 12 months
  6. Tax rate in Singapore
  7. Tax exemptions for start-up companies
  8. Residence test for Singapore companies
  9. Tax computation for a Singapore company – a case study (overseas and Singapore source income)

Singapore tax administration

  1. Simplified income tax return for small Singapore companies (Form CS)
  2. Income tax return (Form C)
  3. Reporting estimated chargeable income (ECI)
  4. Payment of estimated taxes
  5. Type of tax assessments issued by IRAS
  6. Tax appealing procedures in Singapore
  7. Collection of tax
  8. Return of overpaid tax
  9. Offences and penalties
  10. Advanced ruling system

Taxation of dividends, interest and royalty in Singapore

  1. Taxation of dividends
  2. Taxation of interest
  3. Taxation of royalties

Capital gain tax in Singapore

  1. How capital gains are taxed in Singapore?
  2. Income vs capital gains – how to define?

Overview of tax deductions in Singapore

  1. Revenue expenses
  2. Capital allowances

Taxation of start-ups in Singapore

  1. Exemptions for Singapore start-up companies
  2. Taxation of employee share options or employee share ownership
  3. Taxation of equity remuneration incentive scheme
  4. Tax deductions for Singapore angel investors 

Trade losses, unutilized capital allowances, Group relief and PIC

  1. Treatment of trade losses and unutilized capital allowances
  2. Group relief
  3. Productivity and Innovation Credit Scheme

Taxation of overseas income

  1. Overseas income received in Singapore under s10 (25)
  2. Double taxation relief and its application

Taxation of non-residents in Singapore

  1. Withholding tax system
    1. Definition of non-resident
    2. Withholding tax on interest
    3. Withholding tax on royalties
    4. Withholding tax on management fees
    5. Withholding tax on director fees
    6. Withholding tax on charter fees for ships
    7. Reliefs on withholding tax through DTA
  2. Administration
  3. Basic examples – Case study

Taxation of shipping business

  1. Taxation of ship owners
  2. Taxation of ship operators
  3. Maritime sector incentives

Taxation of Singapore investment companies

  1. Taxation of investment dealing company
  2. Taxation of investment holding company
  3. Taxation of eligible family-owned investment company

Taxation of approved fund managers

  1. Tax reliefs available
  2. Enhanced-tier fund tax incentive scheme
  3. Taxation of approved security companies

Taxation of Singapore trusts and trustees

  1. Income tax treatment of tax of Singapore trusts
  2. Taxation of distributions of Singapore trusts
  3. Taxation of Singapore REITs
  4. Taxation of foreign and locally administered trust
  5. Taxation of registered business trusts

Repatriating income from Singapore company

  1. Tax implication analysis of available options:
    1. Dividends
    2. Management fees
    3. Interest and royalty

Taxation of restructuring, mergers and acquisitions

  1. Tax treatment of transfer of business
  2. Tax treatment of transfer of shares
  3. Tax treatment of combination of transfer of business and transfer of shares
  4. M&A allowance available
  5. Stamp duty on share transfer
  6. Tax consequences of liquidation

Tax avoidance and tax evasion in Singapore

  1. Definition of tax avoidance and tax evasion in Singapore
  2. Singapore anti-avoidance provisions
  3. Singapore voluntary disclosure programme

Goods and Services Tax (GST) in Singapore

  1. Definitions
  2. Scope of tax
  3. Time of supply
  4. Compulsory and voluntary registration
  5. Bad debt relief
  6. Tax invoice
  7. Administration of GST
    1. Returns
    2. Assessments objections and appeals
    3. Collection
    4. Offences and penalties

Taxation of expatriates in Singapore

  1. Definitions
  2. Tax rates
  3. Reliefs available to expats
  4. Basic example - Case study (overseas and Singapore source income)