Goods and Services Tax (GST)
GST is a broad-based consumption tax (known in other countries as a Value Added Tax or VAT) levied on nearly all goods and services in Singapore as well as on the import of goods. The only exemptions are for the sales and leases of residential properties and most financial services. Export of goods and international services are zero-rated. The current GST rate stands at 7% and is already included in the price of the goods prior to checkout.
Property tax is a tax on immovable properties, which include houses, buildings and land. If you buy a property, you need to pay property tax payable in advance by 31 January every year.
The tax amount is calculated based on a percentage (Tax rate) of the Annual Value (AV) of a property, i.e. Tax amount = Tax Rate x AV. The current tax rate is 10% per year. If you purchase and live in a residential property, you can apply for the concessionary rate of 4% per year.
The Annual Value (AV) of your property is the estimated annual rent of your property, excluding the rent for furniture, fittings and service charge. IRAS determines the AV of your property by analyzing rents of similar properties. The AV of a taxable property in Singapore is available on a Valuation List on the IRAS website.
Stamp duty is a tax on documents relating to properties and shares including those detailing property sales and purchases, property settlements, leases, mortgages, trust deeds, and distributions of shares. A document can be presented for stamping at any time before executing (signing); however, once a document is executed (signed), stamp duty must be paid within 14 days if the document is signed in Singapore or 30 days of its receipt in Singapore if the document is signed overseas. You can calculate the stamp duty payable using the Inland Revenue website.
TV License Fee
The TV license for a household is valid for one year from 1 January to 31 December at an annual fee of S$110. If you apply after 1 January, the license fee will be pro-rated. Regardless of the number of TV sets or TV-enabled equipment in a home, a TV Licensee only needs to pay for one license. This fee is typically handled by property owners and landlords.
Road tax in Singapore is required for all cars. The sum is calculated based on the car’s engine capacity and the age of the car. After 10 years the road tax amount will increase 10% per year until it is 150% of its original value. Singapore’s One.Motoring website provides a free road tax calculator.
Corporate Income Tax
The current corporate tax rate is 17%. However, there is zero tax for new Singapore companies on the first 100K annual profits for the first 3 years.
|Tax rate on corporate profits for up to 300,000 SGD||8.5%|
|Tax rate on corporate profits above 300,000 SGD||17%|
|Tax rate on capital gains accrued by the company||0%|
|Tax rate on post-tax profits (i.e. dividends) distribution to shareholder||0%|
|Tax rate on foreign-sourced income not brought into Singapore||0%|
|Tax rate on foreign-sourced income brought into Singapore||0 – 17% subject to conditions|