OSOME
3 Minute Guide to Singapore Tax
Singapore is famous for its attractive corporate tax rates. We explain how it works in a snapshot.
Tax Framework
Singapore follows a territorial basis for corporate tax.
Tax Residency. To benefit from Singapore tax system, your company has to be a tax resident. That means that control and management have to be exercised in Singapore, for example, the board of directors’ meetings and making strategic decisions.
Avoidance of Double Taxation Agreements. Singapore has DTAs with nearly a hundred countries in the world, so you avoid being taxed twice on certain types of cross-border income.
Tax Exemptions for SME
These exemptions are broadly available to Singapore companies. The only exceptions are companies with only corporate shareholders, more than 20 shareholders, investment holding and property development companies.
