Benefits of Incorporation in Singapore

With no capital gains tax, robust IP protection, and one of the lowest corporate tax rates in the world, Singapore has topped the World Bank’s Ease of Doing Business index year after year, Singapore has attracted more and more entrepreneurs, corporations and ventures of all sizes across the world to incorporate a Singapore offshore company.
In addition, 75 comprehensive double taxation agreements and 8 limited treaties dealing with income from shipping and air transport enterprises, as well as no controlled foreign company rules, make the city-state the most preferred destination for company incorporation in Asia. Singapore has received many accolades for its business-friendly policies. These rankings have been awarded by well-regarded international organizations and they provide an independent verification of the country’s pro-business stance for the last several decades.

Several factors make Singapore a very attractive place for incorporating your new company; these include:

Singapore is a well-functioning first world country that provides a very business friendly environment for new entrepreneurs. Its healthy economy, strategic geographic location, attractive tax policies and efficient government make it a very attractive place for incorporating a new business. For over two decades, Singapore has also been a very popular destination for foreign entrepreneurs. A series of concerted policies by its government have made it a very business-friendly venue for foreign owned firms. Its advantages include ease of doing business, low taxes, integration with global markets, premier geographic location, and a productive English speaking workforce. It is for these reasons that every year thousands of local and foreign entrepreneurs and companies make it the new home for their business.

Types of Business Structures

It is relatively simple for an entrepreneur to set up a business in Singapore. The first consideration is to decide on the right entity that will meet the business needs.

Different types of business necessitate different company setups. Before starting a business or incorporating a company, learn which type of company will work most efficiently for your business. The most common three business entities available in Singapore are sole proprietorship, limited liability partnership and private limited company.

The followings are the different business structures that are available in Singapore to an entrepreneur:

Company

Branch Office
A branch office is an extension of the foreign parent company, not a separate legal entity, meaning its liabilities extend to the parent company. There are no practical benefits of setting up a branch office over a subsidiary company. Consequently, most foreign companies opt to establish a subsidiary company in Singapore.

Representative Office
A representative office is only a short-term arrangement with a limited purpose. It has no legal status and is designed only for conducting market research or engaging in promotional activities.
A representative office cannot engage in business, enter into contracts, move goods, offer services or open a line of credit. Setting up a representative office may make sense in certain situations where a foreign company is not yet ready to establish a permanent office. Note, however, that the application to set up a representative office is subject to review and approval by government authorities.

Limited Liability Partnership

A limited liability partnership ("LLP") is a perfect blend of partnership and a private limited company. A LLP gives owner the flexibility of operating as a partnership while having a separate legal identity like a private limited company. This structure is highly suitable for individuals engaged in professional services such as lawyers, architects, accountants and management consultants.
Limited Partnership
A limited partnership ("LP") is a vehicle for doing business in Singapore. It is a partnership consisting of a minimum of wo partners, with at least one general partner and at least one limited partner. An LP does not have a separate legal entity from the partners.
Partnership
A partnership is a business firm formed by two to twenty partners. Once there are more than twenty partners, the partnership must be registered as a company under the Companies Act.
Sole Proprietorship
A sole proprietorship is the simplest but riskiest business entity allowed in Singapore. It features only one owner who is the decisive authority and responsible for all assets and liabilities belonging to the business. There are no partners and the sole proprietor has absolute say in the running of the business.

1. A limited liability company known as a subsidiary company
2. A branch office
3. A representative office

Subsidiary Company
Foreign companies can establish a local limited liability company in Singapore, known as a subsidiary company. They can also set up a branch office or a representative office. However, a subsidiary company is the most common business structure for establishing an entity by foreign companies.
The subsidiary acts as a separate legal entity from the parent entity thereby allowing the following benefits

Why are most businesses structured as private limited companies?

1. Separate Legal Entity with Limited Liability
A private limited company has its own legal identity separate from its shareholders and directors, allowing it to enter into contracts, acquire assets, go into debt and sue and be sued in its own name. As a result, the liability of the company’s shareholders is limited to the amount used to purchase shares in the company. Their private assets cannot be used to pay off the private limited company’s debts or liabilities; such debts stop at the company.

2. Tax Benefits

New Singapore start-up companies pay zero tax on the first S$100,000 of chargeable income (profits) for the first three consecutive years. A further 50 percent exemption is given on the next S$200,000 of chargeable income (profits).
In addition, there is no capital gains tax. Moreover, companies do not pay any dividend tax due to Singapore’s single-tier tax system. Once income has been taxed at the corporate level, dividends are distributed to shareholders tax-free. All of these tax benefits are available to a private limited company.

3. Ease of Raising Capital to Expand Your Business

You can raise capital by issuing additional shares to current shareholders or by bringing in new shareholders without having to change the structure of your business. This is not readily possible with some of the other corporate structures.

4. Ease of Transfer of Ownership and Perpetual Succession

Ownership in the company can be transferred easily through the sale of shares. That means the business existence does not rely on the continued membership of any member. If a shareholder dies or resigns, the business can continue to thrive. This is not possible in the case of some of the other structures.

5. Credibility

Investing the time and effort in setting up a company tells potential employees, customers, suppliers, partners and investors that you are running a serious and scalable business.

Each Singapore company must lodge an Annual Return (“AR”) with ACRA within 1 month of its AGM. Particulars of the company officers, registered address and auditors (if applicable) must be included in the AR.

Annual Filings for Singapore Companies

Preparation of Financial Accounts

Based on your company’s financial activities during the accounting year, you must prepare your annual financial accounts in accordance with the Financial Reporting Standards of Singapore. If you have medium to large number of accounting transactions each month, we highly recommend that you perform monthly bookkeeping to keep your ledgers in order. If however, the number of monthly financial transactions is relatively small, you can perform bookkeeping on a quarterly or annual basis. The financial accounts should consist of Statement of Comprehensive Income (i.e. Profit and Loss Account), Statement of Financial Position (i.e. Balance Sheet), Cash Flow Statement and Statement of Changes in Equity.
Filing of Estimated Chargeable Income (“ECI”)
Singapore companies are required to declare the revenue amount and Estimated Chargeable Income (“ECI”) by filing an ECI form with Inland Revenue Authority of Singapore (“IRAS”) within 3 months of the financial year end of the company.

Audit of Financial Accounts

Once the financial accounts are ready, your company must be required to have its accounts audited unless your company is exempted from audit requirements. Companies that are exempted from audit requirements are not required to have their accounts audited. Instead, they will prepare unaudited accounts for purposes of Annual General Meetings and filing with ACRA.

Annual General Meeting (“AGM”)

Each Singapore company must hold an Annual General Meeting (“AGM”) once every calendar year. The following general rules apply to AGMs:

Filing of Annual Return with ACRA

Each Singapore company must file its annual tax return with IRAS by November 30. Singapore adopts the preceding year basis for taxation. The profits for the financial year ending in the preceding year will form the basis for filing the tax return in the current year.

Filing of Annual Tax Return with IRAS

Each Singapore company must file Annual Return with ACRA and Annual Tax Return with Revenue Authority.

Compliance for Singapore Companies

Company Secretary

Every company must appoint a local resident company secretary. The company secretary must have the requisite knowledge and experience to discharge the functions of a company secretary.

Registered Address

A company must have a registered office address in Singapore which must be open and accessible to the public during normal office hours. If there is any change in the address of the registered office, the company must notify ACRA within 14 days of the date of change.

Local Resident Director

A company can have any number of local and foreign directors; however, a company must have at least one director who is “ordinarily resident in Singapore”, i.e. Singapore Citizen, Singapore Permanent Resident, or a person who has been issued an Entrepreneur Pass or Employment Pass.

Any person above the age of 18 years may be appointed as a director. However, certain individuals e.g. bankrupts, are disqualified from holding director positions.

Financial Year End

Every company must fix a Financial Year End. If the company is a subsidiary company, its Financial Year End must coincide with the financial year end of the holding company. Otherwise, the choice of the company’s Financial Year End is left to the company to decide.

Appointment of Auditors

Each Singapore company shall appoint an auditor within 3 months from the date of incorporation, unless it is exempted from audit requirements. A private company, in order to qualify for the audit exemption, must satisfy at least two of the three conditions for each of the two proceeding financial years:

GST Registration

Also known as Value Added Tax (VAT) in many other countries, Goods and Services Tax (GST) is a consumption tax that is levied on the supply of goods and services in Singapore and the import of goods in Singapore. GST is an indirect tax, expressed as a percentage (currently 7%) applied to the selling price of goods and services provided by GST registered business entities in Singapore. As a GST registered entity, you are required to submit a return to the tax authorities based on your accounting cycle, normally on a quarterly basis.
GST registration is required only if the company meets the following conditions:

Accounting Records

Each Singapore company must keep such accounting and other records as are necessary to explain the transactions and financial position of the company and to allow a profit and loss account and a financial statement to be prepared. The accounting records must be kept for 5 years after the completion of the transactions or operations to which they relate. Each director has the right to inspect accounting records of the company at any time.
We strongly recommend that you do your company’s bookkeeping on a monthly basis to ensure proper tracking of all financial transactions.

Business Licenses

Intended activities of your company may or may not require a business license. If your company requires a license, you must apply for and obtain the necessary approval before commencing the target business activities.

Hiring Employees

It is illegal in Singapore to employ foreign staff until your company has secured a valid work pass for them. Your company must apply for and secure a valid work pass for each foreign staff member before commencement of his/her employment.

When hiring local employees, you must ensure that the necessary statutory contributions to the Central Provident Fund (CPF) are made as per the applicable laws.

Director’s Disclosure

A Director shall disclose to the company:

Notification of Changes

Each time a change occurs in the particulars of the company or to its officers, e.g. passport, nationality, residential address of the directors/shareholders/change of financial year/change of registered office address, etc., the change must be lodged with ACRA. Failure to do so will incur penalties.

Company Registration Number Disclosure

The Singapore Companies Act requires every company to have the registration number (in addition to its registered name) on all business letters, statements of account, invoices, official notices and publications.

Annual Filing Requirements

SINGAPORE EMPLOYMENT PASS SCHEME

All foreigners who intend to work in Singapore must have a valid pass (commonly known as a work visa) before they start work. If you are engaging foreigners to work in Singapore, you must ensure that they hold a valid pass. Find out which pass is suitable, if they are eligible and how to apply.

Professionals

Skilled Staff

Family Members

As an Employment Pass holder, you can get certain family members to join you in Singapore if you meet the eligibility requirements; you need to:

Pass Type

Pass Type

Who is it for

S PASS

For mid-level skilled staff. Candidates need to earn at least S$2,200 a month and meet the assessment criteria.

ENTREPASS

Who is it for

EMPLOYMENT PASS

PERSONALISED EMPLOYMENT PASS

Employment Pass

For foreign professionals, managers and executives. Candidates need to earn at least S$3,600 a month and have acceptable qualifications.

For eligible foreign entrepreneurs wanting to start and operate a new business in Singapore.

Who is eligible?
Employment Pass (EP) is a type of work visa issued to foreign professional employees, managers and owners/directors of Singapore companies. EP is normally issued for 1-2 years at a time and renewable thereafter. An EP enables you to work and live in Singapore, and travel in and out of the country freely without applying for Singapore entry visas. Possessing an EP also opens the door for potential Singapore permanent residence in due course.
The Employment Pass is for foreign professionals who :

For high-earning existing Employment Pass holders or overseas foreign professionals. The PEP offers greater flexibility than an Employment Pass.

EntrePass

The EntrePass scheme is designated for foreign entrepreneurs who wish to start a business and relocate to Singapore.
Who is eligible?
Eligible foreign entrepreneurs who want to start and operate a new business in Singapore. Your proposed business needs to meet certain requirements for you to be eligible for an EntrePass. These may include funding from an accredited source, intellectual property, research collaboration or being an incubate.

You are eligible for an EntrePass if:

Pass Type

Who is it for

DEPENDENT'S T PASS

For spouses and children of eligible Employment holders.

Documents required :
You will need these documents to apply:

LONG TERM VISIT PASS

For parents, common-law spouses, step-children or handicapped children of eligible Employment Pass or S Pass holders.

LETTER OF CONSENT

6. For businesses registered with the Accounting and Corporate Regulatory Authority:

For LTVP and DP holders who want to work in Singapore.

7. Other documents that can be useful to solidify your application include licensing agreements, MOUs with potential customers/suppliers, product certifications, endorsements, etc.

Personalised Employment Pass

Who is eligible?
Eligible high-earning foreign professionals can apply for a Personalised Employment Pass (PEP). Pass holders have greater job flexibility than with other work passes. However, they need to meet certain requirements to hold the pass.
You can apply for a Personalised Employment Pass (PEP) if you are:
Minimum Salary
Current Employment Pass holders: at least S$12,000 per month
Overseas foreign professionals: at least S$18,000 per month
Who is NOT eligible?
You are not eligible for the PEP if you are:

Note: You are not allowed to start a business or conduct any form of entrepreneurial activity while on a PEP. If you intend to do so, you should apply for an EntrePass.
Requirements of the pass
To keep holding a PEP, you must:

Benefits of the PEP
The PEP gives you greater job flexibility than other work passes:

SINGAPORE PERMANENT RESIDENCE SCHEME

Singapore has consistently been ranked as one of the world’s top countries in terms of quality of living.

Be it tangibles such as healthcare, crime rate, educational institutions, infrastructure, housing quality, business opportunities and unemployment levels. Or the intangibles such as racial harmony, a multi-cultural and multi-national society as well as access to some of the best touristic destinations in Asia. The city-state has rightly been proclaimed as Asia’s best preferred business headquarters and one of the best countries to live, work and play!

Thus, obtaining a permanent resident (PR) status in Singapore, which may be your intermediary step towards obtaining Singapore’s citizenship, makes sense. All the more when this PR status comes with Central Provident Fund benefits and a range of personal tax reliefs and subsidies in terms of public housing, education and healthcare services.

Who is eligible?
The following categories of foreigners are eligible to apply for permanent residence:

The two popular options by which a foreign national can become a Singapore PR namely :

1. Professionals/Technical Personnel & Skilled Worker Scheme; and
2. Global Investor Programme

This the most preferred and popular scheme for becoming a Singapore PR amongst holders of the Employment Pass, S pass, Entrepass or Personalised Employment Pass. Estimates more than 95% of professionals attain their PR status through this scheme.
Notably, an applicant’s spouse and children aged under 21 years may also apply for Singapore PR status together with the applicant. One point to note is that male dependents will be liable for Singapore National Service once they are granted permanent residency.
Documents required for submission:
Official translations are required if documents are not in English. A photocopy of all the required documents is needed.
If you are applying for yourself, you need to produce the following documents:

A1. Valid travel document and photocopies of passport pages showing personal particulars and official descriptions are required;
A2. Employment Pass or S Pass;
A3. Identity card (if applicable);
A4. Birth certificate or official household census list or family register;
A5. Deed poll or change of name certificate (if applicable);
A6. All educational certificates (including all tertiary qualifications), transcripts, professional license/membership certificates and vocational trade certificates;
A7. Testimonials from previous employer(s) stating the nature and duration of employment and the last drawn basic salary (if applicable);
A8. Pay-slips for the last 6 months;
A9. Income Tax Notices of Assessment for the last 3 years; and
A10. (For self-employed person) Valid Business Registration Certificate with names of partners shown AND major business contracts/invoices and receipts for the last 3 months.

B1. Official marriage certificate;
B2. Death certificate or divorce certificate in respect of your previous marriages (if any);
B3. Custody papers for the children in respect of your previous marriage(s) (if any);
B4. Spouse’s highest educational certificates (including all tertiary qualifications);

B5. Spouse’s valid travel document and photocopies of passport pages showing personal particulars and official descriptions are required;
B6. Spouse’s birth certificate;
B7. Spouse’s deed poll or change of name certificate (if applicable);
B8. Spouse’s identity card (if applicable); and
B9. Death certificate or divorce certificate and the custody papers for the child(ren) in respect of your spouse’s previous marriage(s) (if any).

C1. Child’s valid travel document and photocopies of passport pages showing personal particulars and official details. Child’s valid travel document and photocopies of passport pages showing personal particulars and official descriptions are required;
C2. Child’s birth certificate showing both parents’ names and the child’s name;
C3. Child’s Adoption papers (if applicable); and
C4. Child’s deed poll or change of name certificate (if applicable).

Professionals/Technical Personnel & Skilled Worker Scheme

Global Investor Programme

Investors who is interested in starting up a business or investing in Singapore may apply for permanent residence at the Singapore Economic Development Board (EDB) under the Global Investor Programme (GIP).

Investment Options
Under GIP, you can choose one of the following investment options

Option A: Invest at least S$2.5 million in a new business entity or in the expansion of an existing business operation.
Option B: Invest at least S$2.5 million in a GIP fund1 that invests in Singapore based companies.

Eligibility for GIP Application
You are eligible to apply for PR under the GIP if you have :

The governing statute for both corporate and individual taxation matters in the city is The Income Tax Act of Singapore. The Inland Revenue Authority of Singapore (IRAS) is an umbrella body which conducts revenue collection across all key areas.
The IRAS is the main tax administrator for the Ministry of Finance and plays an important role in policy formulation by providing input on the technical and administrative implications. As part of an ongoing project to increase the resilience of government revenue and create an improved economic environment for businesses, the IRAS also monitors international economic developments and taxation trends which it uses to inform its own role in policy making. In addition to this, the IRAS represents the Singapore government in tax treaty negotiations, provides advice on the valuation of property and works to draft tax legislation.

An Overview of the Singapore Tax System

Singapore is internationally recognised for its progressive, pro-business tax system. With low corporate and personal tax rates, a one tier tax system, double tax treaties and relief measures as well as the absence of a capital gains tax, there are few taxation systems in the world which can compete with the advantages Singapore has to offer businesses who choose to establish themselves in the city.
All persons (corporations, trustees, partnerships and bodies carrying on any sort of trade, profession or business in Singapore) are liable to pay tax on all profits arising from operations in Singapore and some forms of foreign sourced income which come about as a result of local operations.

Essential facts about the income tax system in Singapore

Taxes in Singapore

Although they have no capital gains, estate duty, or death taxes, Singapore has a number of taxes which may apply to your corporation including:

• Income tax for individuals and companies
• Property tax
• Motor vehicle tax (designed to curb congestion)
• Customs and excise duties (apply principally to tobacco, liquor and petroleum products)
• Goods and Services Tax (GST): an indirect tax which is included in the price of the goods and services purchased.
• Betting tax
• Stamp Duty
• Foreign worker levy and airport passenger service charge

Singapore tax rates

• Singapore corporate tax rate is capped at 17%. By keeping corporate rates competitive, Singapore continues to attract a good share of foreign investment. Singapore follows a single-tier corporate tax system, where tax paid by a company on its profits is not imputed to the shareholders (i.e. dividends are tax free).
• Singapore personal tax rates start at 0% and are capped at 22% (above S$320,000) for residents and a flat rate of 15% to 22% for non-residents.
• To increase the resilience of taxes as a source of government revenue, Goods and Services Tax (GST) was introduced in 1994. The current GST rate is 7%. The balanced mix of tax on consumption and income reduces the vulnerability of revenue intake to adverse changes in economic conditions and strengthens the resilience of Singapore’s fiscal position.
• Interest, royalties, rentals from movable properties, management and technical fees, and director’s fees paid to non-residents (individuals or companies) are subject to withholding tax in Singapore.
• For personal taxes, the tax year is the normal calendar year i.e. January 1 – December 31. Deadline for filing personal tax return is April 15. For corporate taxes, a company is free to decide on its financial year. Deadline for filing corporate tax return is November 30. Taxes are paid on a preceding year basis.
• Singapore has no capital gains tax. Capital loss expenses are correspondingly not allowed as deductions.
• Singapore has concluded more than 50 bilateral comprehensive tax treaties to help Singapore companies minimize their tax burden.

Good design is obvious.
Great design is transparent.

Depending on the incentive or grant being sought, applications will need to be made at the relevant approving government authorities. Upon application, the relevant government authorities have certain discretion in administering the incentives and grants, and therefore the incentives and grants available may be negotiated, reviewed and agreed on a case-by-case basis. In general, award periods may vary from 3 to 10 years depending on various metrics set by the relevant authorities.

Singapore Tax System & Tax Rates

PERSONAL INCOME TAX

With one of the lowest personal income tax rates in the world, it is of little wonder that more and more entrepreneurs and young professionals are choosing to relocate to Singapore.
There are a number of factors which influence the amount of tax an individual is required to pay such as tax residency and chargeable income. Here are some key points about Singapore’s taxation system.

RATES FOR PERSONAL INCOME TAX

Tax residents in Singapore are charged on a progressive basis. Filing a return is mandatory for those with an income which exceeds S$20,000, those with income below this are not required to pay tax. However, in some cases, individuals with incomes below S$20,000 may be requested to complete a return by the Singapore tax department.

TAX RESIDENT

Different income tax rules apply in Singapore depending on the tax residency status of the individual. A tax resident is defined as an individual who is one of the following:

Rebate for Tax Residents
For YA 2017, all tax residents will receive an income tax rebate of 20% of tax payable, up to a cap of S$500.
For further details, please visit the website of Inland Revenue Authority of Singapore at https://www.iras.gov.sg.

PERSONAL INCOME TAX FOR NON-RESIDENTS IN SINGAPORE

A non-resident is defined as an individual who has stayed or worked in the city for fewer than 183 days. For individuals who have worked in Singapore for 60 days or less, their income is exempt from tax. This excludes company directors, public entertainers, and those exercising a profession (professionals include foreign experts, translators, consultants, trainers, coaches, queen’s consuls etc.). Those who have stayed or worked for 61-182 days are taxed on income earned in Singapore. Chargeable income for these individuals is their total income less expenses and donations but they are not eligible for personal reliefs. Income is taxed at either 15% or the progressive rate depending on which is higher. Separate to this, director and consultant fees and all other incomes are taxed at a range of 15% to 22%.

FILING TAX RETURNS FOR PERSONAL INCOMES

All eligible tax payers must file a return by the 15th of April each year, penalties are imposed upon those who file past this date or fail to file altogether. Those who earn under S$20.000 a year are not required to file a return unless specifically requested by the tax authority. Even if you have not earned any income in previous years, you are required to declare zero income and file for a return. Returns can be filed online or by mail. During February and March, IRAS will send you either a B1, a B, or an M form depending on your tax resident status and whether or not you are self-employed.
Once you have filed, you will receive your Notice of Assessment by September. This is a tax bill which will indicate the amount of tax you are required to pay. It is possible to dispute your Notice of Assessment by notifying and stating your objections to IRAS within 30 days of the date of the notice.
Payment of taxes is required within 30 days of the date of the notice regardless of whether or not you have informed the authorities of your objection. A penalty is imposed for outstanding taxes after 30 days.

TAXATION ON OVERSEAS INCOME

Typically, income earned overseas and received in Singapore is not taxed and does not need to be declared. This includes overseas income paid into an SG bank account. However, there are some instances in which income overseas is taxable including when it is received in Singapore through Singapore based partnerships, when overseas employment is incidental to your Singapore employment (i.e. you work in Singapore, but must travel internationally for your job), and when you are employed internationally by the Government of Singapore. In these circumstances, the income needs to be declared as ‘employment’ or ‘other’ income on your form.

TAXATION ON EMPLOYER BENEFITS

Unless they are exempt from income tax or subject to an administrative concession, all of your gains and profits earned as a result of employment are taxable. This includes all employee benefits financial or otherwise. Some examples include accommodation or housing allowance, a company car, medical or dental reimbursement costs for yourself or your dependants, overtime, per diem allowances for business trips, transport allowance, and meal allowances.

SINGAPORE CORPORATE TAX RATE

The system prevalent in Singapore is called a one-tier corporate tax system, under which tax paid by a company on its chargeable income is the final tax. All dividends paid by a company are exempt from tax in the hands of the shareholders.
The corporate income tax rate since 2010 has been fixed at 17%. It is calculated on the basis of the company’s chargeable income, i.e. taxable revenues less allowable expenses and other allowances. But the effective tax payable comes out to even lower if one takes advantage of all the government incentives, subsidies and schemes.
Tax residence of company
A company is considered as a tax resident in Singapore if the control and management of the business is exercised in Singapore. “Control and management” is the making of decisions on strategic matters, such as those on company policy and strategy. Generally, the location of the company’s Board of Directors meetings, during which strategic decisions are made, is one of the key factor in determining where the control and management is exercised.
If the company has an executive director or key management personnel whom is playing important role in decision making based in Singapore is one of the key factor too in determining where the control and management is exercised.
In general, a company is considered non-resident in Singapore if the directors manage and control the business and hold board meetings from outside Singapore. This is true even if, for example, the lower level operations are taking place in Singapore. A company’s residence may change from one year of assessment to the next depending on the circumstances. A Singapore branch of a foreign company is generally not treated as a Singapore tax resident since the control and management is vested with an overseas parent company.
The basis of taxation for a resident company and non-resident company is generally the same with the exception of certain benefits that are available to resident companies.
These include:

Singapore tax treaties
A tax treaty between two countries is generally an agreement that specifies how the income earned will be taxed by the authorities of each country when a company is involved in doing business in both countries. The main benefit and objective of an income tax treaty is to help businesses avoid double taxation of their income.
Singapore has concluded tax treaties with more 50 countries and the list continues to grow. The treaties reflect Singapore’s continual efforts to help businesses in relieving double taxation and to encourage and facilitate the trade and investment opportunities across-borders.
Starting 2008, Singapore has gone a step further in providing unilateral tax credits to Singapore companies. According to the new policy, all Singapore companies that earned income from countries that don’t have double tax agreement with Singapore, will be allowed a tax credit on their foreign-sourced income from those countries.
For more details, please visit the website at https://www.iras.gov.sg.
General Tax Incentives
Listed below are general tax exemptions/incentives currently available to Singapore tax resident companies. Once these tax exemptions are applied to the taxable income, the effective income tax rate for small-to-mid size Singapore companies is reduced significantly.

• 0% tax on S$100K taxable income

The corporate income tax rate is 0% on the first S$100,000 taxable income for each of the first three tax filing years for a newly incorporated company that meets the following conditions:

1. be incorporated in Singapore
2. be tax resident in Singapore (Please see below the tax residency of company)
3. has no more than 20 shareholders of which at least one is an individual shareholder holding at least 10% of shares

• 8.5% tax on taxable income of up-to S$300K

All Singapore resident companies are eligible for partial tax exemption which effectively translates to about 8.5% tax rate on taxable income of up-to S$300,000 per annum. The taxable income above S$300,000 will be charged at the normal headline corporate tax rate of 17%.
One-off Corporate Income Tax (CIT) Rebate for YA 2016 & YA 2017
According to the Singapore Budget 2016, every Singapore company will be eligible for a corporate income tax rebate. Singapore companies can claim a one-time 50% corporate income tax rebate on corporate income tax payable for YA 2016 & YA 2017, subject to a cap of S$20,000.
Income tax filing due date
Income tax filing due date for Singapore companies starting year 2009 is November 30.
The company has to file a complete set of returns including Form C, audited/unaudited accounts, and tax computation. The Form C is a declaration form for a company to declare its income whereas tax computation is a statement showing the adjustments to the net profit/loss as per the accounts of a company to arrive at the amount of income that is chargeable to tax.
Income tax basis period
In Singapore, corporate income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending (FYE) in the year preceding the YA. For example, in year 2008 you will be filing corporate tax return for your company’s financial year that ended anytime between January 1, 2007 to December 31, 2007. Your company’s accounts are prepared up to the FYE each year.
Withholding tax
Singapore has implemented a withholding tax law (on certain types of income) to ensure the collection of tax payable to non-residents on income generated in Singapore. The tax withholding does not apply to Singapore resident companies or individuals. Under the law, when a payment of a specified nature is made to a non-resident company or individual, a percentage of the payment has to be withheld and paid to Income Tax Authorities. The amount withheld is called the withholding tax.
Industry specific and special purpose tax incentives
Singapore provides several targeted incentives to companies in specific sectors. Every business in the country, whether a startup, a small and medium enterprise (SME), or a foreign branch of an established business can avail these benefits if it is operating in the relevant section.
The Inland Revenue Authority of Singapore (IRAS), which is the tax authority of the country has several tax schemes which help businesses reduce their taxes. SPRING Singapore also offers funding schemes especially targeted towards the growth of the startups in the country. Besides the tax and funding schemes, there are other business incentives (in the form of grants or preferential treatment in other areas) that are available in the country. Government authorities such as the Economic Development Board (EDB), International Enterprise Singapore have designed these incentives to attract companies to Singapore and to promote entrepreneurship and innovation in the country.
To find more, please visit the following government authorities in Singapore which offer and administer business incentives for Singapore entities:

1. Singapore Economic Development Board (EDB) at https://www.edb.gov.sg
2. International Enterprise Singapore (IE Singapore) at https://www.iesingapore.gov.sg
3. Monetary Authority of Singapore (MAS) at https://www.Inmas.gov.sg
4. Inland Revenue Authority of Singapore (IRAS) at https://www.iras.gov.sg
5. SPRING Singapore at https://www.spring.gov.sg
6. Maritime and Port Authority of Singapore (MPA) at https://mpa.gov.sg

Singapore is a country with one of the lowest tax rates in the world. But on top of its low rates, the country provides numerous tax incentives and cash grants to help the growth of businesses thereby reducing the effective tax rates even further. Additionally, the hassle-free legal system and efficient business policies make Singapore a very attractive place for entrepreneurs to start their business. The country also provides a natural hub for expansion to Asia and Australia. If you wish to set up a new business, Singapore is a very attractive choice for these reasons.

Conclusion