What Are The Corporate Tax Benefits for Singapore Companies

Posted by Cheryl Lee on January 5th, 2021

When Singapore separated from Malaysia almost 50 years ago, it was a struggling city-state with no natural resources of its own, except its people. Thus, to promote economic growth and development, the leadership of the country decided to open doors and invite foreign investments and international trade.

Business-friendly and efficient tax policies were implemented; English educated skilled workforce was brought up; robust and transparent regulatory environment was initiated; and a world-class infrastructure was set-up. Slowly, Singapore became the world’s easiest place to do business, one of its busiest ports, a prolific oil refining and distribution centre, a leading supplier of electronic components, and arguably Asia’s financial hub.

Corporate Tax Policies in Singapore

Territorial Corporate Tax System with Remittance

Strategically located in the middle of Asia, where East synergizes with the West, Singapore is an attractive location for global businesses to access cheap labour and booming markets available in the continent. But the most important attraction for foreign companies remains the city-state’s territorial tax system, which also exempts some qualifying foreign-sourced incomes from taxation (dividends, branch profits, service income).

The city-state also imposes neither any capital gains tax nor is there any withholding tax on dividends. Advance Rulings on taxation is possible too.

Read more about Corporate Tax Benefits for Singapore Companies at Singapore Company Incorporation.