Tax consulting is effective to help you navigate this ever-changing global tax landscape. This is especially important for businesses as the tax function is increasingly expected to drive growth and contribute to their success.
Regarding tax matters in Singapore, every qualifying individual and company are held accountable to IRAS and must comply with its strict requirements. At NLA DFK, our team of tax consulting experts are kept abreast of both old and new taxation rules, with extensive experience across multiple industries.
Our Tax Consulting Services
Our highly trained and experienced tax consultants can provide the following personal income tax consulting services to individuals in Singapore:
- Personal income tax planning and advice
- Preparation of tax computation and schedules
- Filing of Form B, Form B1 and Form P
- Managing IRAS audits and investigations
Frequently Asked Questions About Tax Consulting in Singapore
Salaries and bonuses are taxable in Singapore. Also, employment benefits such as housing and stock options form part of the taxable employment income.
Some non-taxable items include Singapore dividends, bank interest, and overseas income derived outside Singapore.
You are regarded as a tax resident in Singapore if your period of stay in Singapore (inclusive of work) is:
- At least 183 days in a year: You will pay progressive income taxes at local resident rates and can claim tax relief.
- At least 183 days for a continuous period over two years and the employment period straddles two calendar years: You will pay progressive income taxes at local resident rates and can claim tax relief for both years.
- At least 183 days for a continuous period over three years: You will pay progressive income taxes at local resident rates and can claim tax relief for all three years.
You are regarded as a non-resident in Singapore if:
- Your period of stay in Singapore (inclusive of work) is for 61 to 182 days: Your employment income is taxed at 15% or at progressive resident rates, whichever is higher. Director’s fees and other income are taxed at the prevailing rate of 22% and there is no tax relief.
- Employed for 60 days or less: Your short-term employment income is exempt from tax unless
o You are a director of a company, a public entertainer, or a professional in Singapore; or
o Your absences from Singapore are incidental to your Singapore employment. In this case, your total income (including income for services rendered outside Singapore) is taxable in full in Singapore.
Singapore has one of the lowest tax rates in the world. The exact tax rates for residents and non-residents can be found on IRAS’s website.
Companies incorporated in Singapore have to pay the Corporate Income Tax (CIT) and the Goods and Services Tax (GST).
Corporate Income Tax (CIT): The current CIT rate is 17%, which was effective since the Year of Assessment 2010. Companies can claim rebates for the amount of income taxed.
Goods and Services Tax (GST): GST is a 7% consumption tax that has to be submitted quarterly, either by mandatory registration or voluntary registration. For mandatory GST registration, the company must, or is expected to have, an annual turnover exceeding $1 million.
Even if the company didn’t hit the annual turnover of $1 million, some may voluntarily choose to have GST registration to claim back the GST on their supplies or to boost their reputation.
For both individuals and corporations looking to save on taxes in Singapore, you can complete the following:
- Apply for tax reliefs to offset against your assessable income if you are a tax resident;
- Claim expenses incurred against your employment income and enjoy tax deductions for approved charitable donations;
- Enjoy either Time Apportionment of Singapore employment income or Tax Exemption of Employer’s contributions to Overseas Pension Fund, or both under the Not Ordinarily Resident (NOR) Scheme;
- Enjoy time apportionment of employment income under the Area Representative Scheme if you work for a foreign employer and need to travel overseas in the course of work; and
- Be protected from being taxed twice in Singapore and your country of residence under the Avoidance of Double Taxation Treaties
Income is assessed on a preceding year basis, ending 31 December. Income tax bills will be sent out by IRAS by September and individuals must file their income tax by 15 Apr of the following year.