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What Foreign Business Owners Need to Know About Singapore Tax

Singapore is known for its pro-business environment, competitive tax rates, and strong regulatory framework, making it one of the best countries for foreign entrepreneurs to establish their businesses. If you are considering setting up a company in Singapore, understanding the tax landscape is crucial for effective planning and compliance.

Below is a quick summary guide to Singapore’s tax regime.

1. Corporate Tax in Singapore

Key Benefits for Foreign Business Owners

  • No Capital Gains Tax: Singapore does not impose tax on capital gains.
  • Territorial Tax System: Foreign-sourced income is generally not taxable unless remitted to Singapore.
  • Double Tax Agreements (DTAs): Singapore has an extensive network of DTAs, reducing tax exposure for international businesses.

2. Personal Income Tax for Business Owners

Foreigners operating businesses in Singapore may be subject to personal income tax. Below is a breakdown of the 2025 tax rates:

Additional Considerations

  • Tax Residency Status: Individuals who stay or work in Singapore for 183 days or more in a calendar year are considered tax residents and benefit from progressive tax rates and personal reliefs.
  • Non-Resident Tax Rates: Non-resident individuals are taxed at a flat rate of 15% on employment income or according to resident progressive tax rates, whichever results in higher tax payable.

3. Goods and Services Tax (GST)

GST is an indirect tax applied to the supply of goods and services inSingapore. GST-registered businesses must charge 9% GST on taxable supplies andfile periodic returns with the Inland Revenue Authority of Singapore (IRAS).

4. Tax Incentives & Support for Foreign Investors

To encourage business growth, Singapore offers various incentives, including:

  • Global Investor Programme (GIP): Provides Permanent Residency (PR) status for eligible foreign entrepreneurs and investors.

Singapore offers a variety of industry-specific tax incentives to attract and support businesses across various sectors. These incentives are administered by key government agencies, each focusing on specific industries:

For a comprehensive list of industry-specific incentives and detailed information, you can visit the respective websites of these agencies:

Why Choose Singapore for Your Business?

  • Ease of Incorporation: Streamlined processes make setting up a business straightforward.
  • No Withholding Tax on Dividends: Foreign investors can repatriate profits without incurring withholding tax.
  • Political & Economic Stability: Singapore's transparent legal system and robust financial infrastructure provide a stable business environment.

Get Expert Tax Guidance with Finova Group

Understanding Singapore’s tax landscape is key to maximizing tax efficiency and staying compliant. At Finova Group, we offer a comprehensive range of corporate services, helping foreign businesses navigate the complexities of incorporation, taxation, compliance, and regulatory requirements in Singapore.

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Disclaimer: This article provides general information and does not constitute tax or legal advice. Please consult a professional advisor for personalized guidance.

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