Low GST & Corporate Tax Rates Draws Businesses towards Singapore: TaxationServices.com.sg

SINGAPORE - May 23, 2014 - PRLog -- “The move from direct taxes to indirect taxes (GST) has helped the Singapore economy enormously, in broadening its tax base. It has helped the government in taking steps in lowering corporate income tax as well as personal income tax. The move resulted in a flood of foreign capital and it also provided relief for the Singapore citizens and residents,” said a veteran tax analyst at TaxationServices.com.sg.

Investors from every nook and cranny of the financial world are bee lining to be a part of the Singaporean economy. Simplified procedures to register a Singapore company, double-taxation treaties and easy rules also help in highlighting Singapore’s position as a leading global investment destination. On the basis of pro-business attitude of Singapore economy and low Singapore corporate tax rates, this Asian city-state has made itself into one of the most flourishing business destination.

“The corporate tax rates in other economies are showing upward trend, but, in Singapore, for the last decade, they are going down. This is one of the reasons behind the success of Singapore’s economy,” said TaxationServices.com.sg, a leading corporate tax services provider.

Corporate Tax:
Singapore finance ministry enforces and collects taxes through Inland Revenue Authority of Singapore (IRAS). Basically, incomes earned by a Singapore company locally, as well as, in foreign countries and received in Singapore (with some exceptions) invite corporate tax (   http://www.taxationservices.com.sg/singapore-tax/corporat...   ). This tax is also known as business tax, company tax or corporate income tax.

Corporate Tax Rate 2014:
IRAS has implemented single-tire corporate income tax which is currently pegged at a flat rate of 17%. “In practice single-tier tax means: a Singapore resident company pays income tax on its chargeable income and that is that; dividend paid by the company to its shareholders is not taxed. Dividend is a capital gain, in Singapore, it is untaxed. Final tax is what is paid by the company,” said Ms. Meena, the business head of TaxationServices.com.sg.

Corporate Tax for Newly Registered Singapore Company:
In the first few years of existence, a newly incorporated Singapore company can enjoy variable corporate income tax rates. For the duration of first 3 years, its taxable income of first S$100,000 is taxed at 0%, if and only if, it is locally registered and is a tax resident of Singapore. The number of its shareholders should be less than 21, and one of them must hold at least 10% of its shares. For any Singaporean company with taxable income up to S$300,000, partial tax exemption in the form of tax rate of 8.5% applies.

“The effective corporate income tax is much lesser than 17%, because of the tax rebates, tax exemptions and incentives offered by the authorities. In addition, Singapore tax services help their clients, in further reducing it by claiming depreciation and etc, at the time of tax reporting,” said TaxationServices.com.sg.

The logic behind the corporate tax in Singapore applicable to the resident and non-resident companies is the same. However, in practice Singapore registered companies have a little advantage. With the help of Singapore tax services like, TaxationServices.com.sg, companies can monetize this advantage.

Withholding Tax:
Withholding tax applies only to non-resident Singapore companies and non-resident individuals. A part of every payment to these entities, under certain conditions, is withheld at the source of payment. This part is paid to the IRAS as withholding tax.

Goods and Services Tax in Singapore:
“In order to reduce the dependence on direct taxes, Singapore finance ministry announced introduction of Goods and Service tax (GST) (   http://www.taxationservices.com.sg/singapore-tax/gst-good...   ) in 1994,”said TaxationServices.com.sg. GST Singapore is an indirect tax levied on consumption of goods and use of services in Singapore. Goods imported from other countries are also subjected to this tax. Currently, 7% of GST is applied to the selling price of the goods and services sold in Singapore.

Taxes such as corporate tax and GST, brings in the money for the government to use in development of Singapore socially and economically.

About TaxationServices.com.sg
TaxationServices.com.sg has been serving all types of companies in Singapore, and gained the reputation of being one of the best taxation service firms in the island nation. Its services include Singapore tax services, accounting services, audit services, bookkeeping services, and XBRL filing services.  The firm also specializes in offering company incorporation services (   http://www.taxationservices.com.sg/singapore-incorporatio...   ), corporate secretarial services, payroll service and immigration and work visa services.

Contact:
Ms. Meena
TaxationServices.com.sg
35-B Hongkong Street,
Singapore - 059674
Tel: +65-6536 0036
Email: info@taxationservices.com.sg
Website:  http://www.taxationservices.com.sg/