Key Features:

• No capital gains tax: Gains from the sale of investments or properties are not taxed.
• No inheritance tax: Estate duty was abolished in 2008.
• Progressive personal income tax rates: Higher earners pay a higher percentage of their income in taxes.
• Flat corporate tax rate: Competitive rates to attract businesses.

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2. Tax Filing for Individuals

Who Needs to File Taxes?

• Residents: Individuals who have stayed or worked in Singapore for at least 183 days in a calendar year or have established permanent residence.
• Non-residents: Individuals who have worked in Singapore for less than 183 days in a calendar year. Non-residents are taxed differently (see below).

Taxable Income

Taxable income includes:

• Employment income (salary, bonuses, allowances, etc.)
• Rental income
• Business income
• Other income (e.g., royalties, dividends, etc.)

Personal Income Tax Rates (2023)

Singapore uses a progressive tax rate for residents:

• First SGD 20,000: 0% (tax-exempt)
• Next SGD 10,000: 2%
• Next SGD 10,000: 3.5%
• Next SGD 40,000: 7%
• Next SGD 40,000: 11.5%
• Next SGD 40,000: 15%
• Next SGD 40,000: 18%
• Above SGD 320,000: 22%

Non-residents are taxed at a flat rate of 15% on employment income or the resident rates, whichever results in a higher tax amount.

Key Deadlines for Individuals

• Tax Year: The tax year in Singapore follows the calendar year (1 January to 31 December).
• Filing Deadline:
  • 15 April (for paper filing)
  • 18 April (for e-filing via myTax Portal)
• Payment Deadline: Taxes must be paid within 30 days of receiving the Notice of Assessment (NOA).

Filing Procedures for Individuals

1. Receive Filing Notification: IRAS will notify you if you need to file a tax return. If you do not receive a notification, you may still need to file if you earned taxable income.
2. Log in to myTax Portal: Use your Singpass to access the portal.
3. Complete Form B/B1:
   • Form B1: For tax residents.
   • Form B: For self-employed individuals or those with business income.
4. Declare Income and Deductions:
   • Employment income is often pre-filled by employers under the Auto-Inclusion Scheme (AIS).
   • Claim deductions (e.g., donations, course fees, or parent relief).
5. Submit by Deadline: Ensure submission by 15/18 April.

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3. Tax Filing for Businesses

Who Needs to File Taxes?

All companies incorporated in Singapore or operating in Singapore must file taxes, regardless of whether they made a profit.

Corporate Tax Rates

• Flat rate: 17% on chargeable income.
• Partial Tax Exemption: The first SGD 10,000 of chargeable income is 75% exempt, and the next SGD 190,000 is 50% exempt.
• Start-Up Tax Exemption: Qualifying new companies enjoy a 75% exemption on the first SGD 100,000 of chargeable income for the first three years.

Key Deadlines for Businesses

• Tax Year: Same as the calendar year (1 January to 31 December).
• Filing Deadline:
  • Estimated Chargeable Income (ECI): File within 3 months of the end of the financial year.
  • Corporate Income Tax Return (Form C/C-S): File by 30 November (paper filing) or 15 December (e-filing).

Filing Procedures for Businesses

1. Prepare Financial Statements: Ensure they comply with Singapore Financial Reporting Standards (SFRS).
2. File ECI: Submit an estimate of your chargeable income within 3 months of the financial year-end.
3. File Form C/C-S:
   • Form C-S: For small companies with annual revenue ≤ SGD 5 million.
   • Form C: For larger companies or those with more complex tax matters.
4. Submit via myTax Portal: Use the corporate Singpass to access the portal.

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4. Tax Reliefs and Deductions

Singapore offers various tax reliefs to reduce taxable income. Some common ones include:

For Individuals

• Earned Income Relief: Based on age and employment status.
• Parent/Grandparent Relief: For supporting elderly dependents.
• Course Fees Relief: For skills development courses.
• CPF Contributions: Mandatory contributions to the Central Provident Fund (CPF) are tax-deductible.

For Businesses

• Productivity and Innovation Credit (PIC): For investments in innovation and productivity.
• Double Tax Deduction for Internationalisation (DTDi): For expenses incurred in expanding overseas.
• Investment Allowances: For qualifying capital expenditures.

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5. Payment Methods

Taxes can be paid via:

• GIRO: Monthly installments or a one-time deduction.
• Credit/Debit Card: Online payment through myTax Portal.
• Internet Banking: Transfer via participating banks.
• Cheque: Payable to "Commissioner of Inland Revenue."

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6. Penalties for Late Filing or Payment

• Late Filing: A fine of up to SGD 1,000 and possible prosecution.
• Late Payment: A 5% penalty on the unpaid tax, with an additional 1% penalty for every month the tax remains unpaid (up to 12%).

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7. Country-Specific Considerations

• Auto-Inclusion Scheme (AIS): Employers in Singapore are required to submit employees’ income information directly to IRAS, simplifying the filing process for individuals.
• Tax Residency Status: Your tax residency status significantly affects your tax rates and relief eligibility. Ensure you determine your status correctly.
• Double Tax Agreements (DTAs): Singapore has DTAs with many countries to avoid double taxation. Check if your home country has a DTA with Singapore.

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8. Resources and Support

• IRAS Website: www.iras.gov.sg
• myTax Portal: For e-filing and tax-related services.
• IRAS Hotline: +65 6356 7012 (for individual tax queries) or +65 6356 7014 (for corporate tax queries).
• Tax Agents: Consider engaging a licensed tax agent for complex tax matters.

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By adhering to the above guidelines and deadlines, you can ensure compliance with Singapore’s tax regulations and avoid penalties. Let me know if you need further clarification or assistance!