In terms of personal income tax, Singapore immigration adopts a progressive tax rate system. After deducting personal income tax exemptions, the personal income tax rate remains between 0-20%. Income received from outside Singapore is not subject to tax, and there is also an exemption from capital gains tax and property tax. Anyone who resides or performs duties in Singapore for 183 days or more becomes a resident of Singapore. Residents are required to pay income tax on income earned in or sourced from Singapore or foreign income remitted to Singapore.
If a non-resident individual is employed in Singapore for no more than 60 days in a calendar year, they are exempt from personal income tax, except for non-residents serving as directors, performing artists, or those undergoing internships in Singapore. Non-resident individuals only pay income tax on income earned within Singapore, with a tax rate of 15%, or according to the resident personal income tax rate, whichever is higher, but they cannot apply for personal income tax exemptions.
Singapore investment immigration individuals' personal income tax scope includes employment income, business income, dividends, interest, pensions, rental income, royalties, insurance compensation income, property income, etc. Tax-exempt income includes pensions, bereavement compensation, and personal gifts.
Regarding corporate tax, Singapore has one of the lowest corporate tax rates among developed countries, at only 17%. Local and foreign companies earning income within Singapore or sourced from Singapore, or receiving overseas income in Singapore, are required to pay taxes. The assessment is based on the income of the previous year.
The Singapore government provides a one-time 20% corporate income tax rebate, capped at SGD 10,000, or offers cash grants of up to SGD 5,000 to small and medium-sized enterprises. Under the Productivity and Innovation Credit Scheme, businesses can receive a tax deduction of 400% on expenditures for six major projects, with a cap of SGD 400,000 for each expenditure item. Additionally, businesses can receive cash grants capped at SGD 30,000.
Furthermore, Singapore has no estate tax and exempts global double taxation. The advantages of Singapore as a "tax haven" attract entrepreneurs from various countries to immigrate.
