Tax & Accounting Services in Singapore
Corporate tax filing, GST, withholding tax and transfer pricing, plus personal income tax. The compliance calendar is fixed and the penalties are automatic, so most of the value is in not missing anything.
We handle corporate and personal tax compliance for companies and individuals in Singapore, from the estimated chargeable income filing through to the annual return, alongside GST, withholding tax and transfer pricing.
Singapore’s tax system is straightforward by international standards, which is precisely why the errors that occur are usually procedural: a deadline missed, a payment to a non-resident made without withholding, documentation not kept.
Corporate tax
Singapore taxes companies on income accruing in or derived from Singapore, and on foreign income received here, at a headline rate of 17 per cent. What most companies actually pay is lower, because of the exemptions available to new companies in their early years and the partial exemption available generally.
The compliance cycle has two fixed points. Estimated chargeable income is filed within three months of the financial year end, unless the company qualifies for the waiver. The annual tax return follows, with the filing deadline at the end of November for the year of assessment.
Singapore assesses on a preceding year basis: profits for the financial year ending in the preceding year form the basis of the return filed in the current year. This confuses people more than any other feature of the system, and it matters when planning around a change in the business.
GST
GST is a consumption tax on most domestic goods and services and on imports, currently at 9 per cent.
Registration is compulsory once taxable turnover exceeds the statutory threshold, and voluntary registration is available below it. Registered businesses file periodic returns, account for output tax, and claim input tax on their purchases.
The practical points that catch businesses out are the timing of registration, whether a supply is standard rated, zero rated or exempt, and the treatment of imported services. See also bookkeeping and accounting, where the returns are prepared.
Withholding tax
Payments of certain kinds to non-residents require tax to be withheld and paid to IRAS. Interest, royalties, technical and management service fees and directors’ remuneration all fall within the regime, at rates that vary by payment type, and treaty relief may reduce them.
This is the single most common tax problem we see in owner-managed companies. A payment is made overseas for a service, nobody withholds, and the liability sits with the paying company along with penalties. If your business pays anyone outside Singapore for anything other than goods, it is worth checking whether withholding applies before the payment rather than after.
Transfer pricing
Where a business transacts with related parties, those transactions must be conducted on arm’s length terms, and documentation must be prepared and kept where the statutory thresholds are met.
Transfer pricing documentation is not filed with the return; it is prepared contemporaneously and produced if IRAS asks. Groups that only think about it when asked are in a poor position to answer.
Personal income tax
Singapore taxes individuals on a progressive scale, with residents and non-residents treated differently. Annual returns are due in April, and reliefs, foreign income treatment and equity compensation are the areas where advice is most often worth having.
Where a person’s affairs involve family structures or succession, see fund structuring and administration and will writing.
Tax in Singapore: frequently asked questions
What is the corporate tax rate?
Seventeen per cent on chargeable income. Most companies pay less in practice, because of the exemption available to qualifying new companies in their first years of assessment and the partial exemption available to companies generally. The effective rate for a small profitable company is often considerably lower than the headline.
What is ECI and do we have to file it?
Estimated chargeable income, an estimate of taxable profit filed within three months of your financial year end. Companies meeting the waiver conditions, broadly those with modest revenue and nil ECI, do not have to file it. Everyone else does, and it is a commonly missed deadline because it falls long before the tax return itself.
What rate is GST now?
Nine per cent, following the increase that took effect at the start of 2024. Anything you read describing it as seven or eight per cent is out of date.
We paid an overseas contractor. Should we have withheld tax?
Possibly, and it depends on what the payment was for. Payments to non-residents for services performed in Singapore, for royalties, for interest and for directors’ fees commonly attract withholding. The obligation is on the payer, so discovering it afterwards means paying tax you did not deduct, plus penalties. Ask before you pay.
Do we need transfer pricing documentation?
If you transact with related parties and meet the statutory thresholds, yes, and it must be prepared contemporaneously rather than assembled when IRAS asks. Even below the thresholds, related party transactions still have to be on arm’s length terms.
When is personal income tax due?
Returns are due in April each year, with electronic filing having a slightly later deadline than paper. If you have moved to or from Singapore during the year, or have income from more than one country, the position is worth checking rather than assuming.
Can you handle both the company and the directors personally?
Yes, and it usually makes sense. Remuneration, dividends and directors’ fees are taxed differently, and looking at the company and the individuals together often produces a better answer than optimising either in isolation.
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