Singapore taxation 2011 fact sheet special 1

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Design

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SINGAPORE TAXATION REPORT - 2011 FACTSHEET

Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887

First S$10,000Taxa

ble

inco

me

S$10,001 - S$300,000 Next S$ 146,617 Above S$ 446,617

8.50%

17.00% 17.00% 17.00%

13.60%

6.80%4.25%

3.04%

Tax rate Effective tax rate after new tax rebate YA 2011 (2010 income)

SINGAPORE CORPORATE TAX

First S$100,000Taxa

ble

inco

me

Tax rate Effective tax rate after new tax rebate YA 2011 (2010 income)

S$100,001 - S$300,000 Next S$ 194,118 Above S$ 494,118

ZERO TAX

8.50%

17.00% 17.00% 17.00%

13.60%

6.80%

* Qualifying conditions• Nomorethan20individualshareholders.• Wheretherearecorporateshareholders,atleast1shareholderisanindividualholdingatleast10%oftheshares.

New Startup Companies* for first 3 years of assessment

• Acompanythatdoesnotqualifyforataxexemptionfornewstart-upcompanieswillbegivenpartialtaxexemption.• Applicabletoallcompanieswith100%corporateshareholder

For all other companies

One-off SME Cash Grant

Corporate Income Tax Rebate:A20%rebate,subjecttoacapof$10,000,willbeallowedtoeachcompanyforYA2011.

Inrecognitionthatmanysmallcompaniesarenottaxable,aone-offSMEcashgrantof5%ontotalrevenue,subjecttoacapof$5,000.Tobeeligible,thecompanymusthavemadeCPFcontributionforatleastoneemployeeduringthebasisperiodofYA2011.

TAX-FREE DIVIDEND Taxpaidbyacompanyonitschargeableincomeisthefinaltaxandalldividendspaidtoitsshareholdersareexemptfromfurthertaxation.

0%


NEW STARTUP COMPANIESEFFECTIVE TAX RATES & REBATES (YA 2011)

BEFORE TAX REBATE AFTER TAX REBATE

Chargeable Income ($) Estimated Tax (S$) Effective tax rate Estimated Tax (S$) Effective tax rate

100,000 0 0% 0.00 0%

200,000 8,500 4.25% 6,800.00 3.40%

300,000 17,000 5.67% 13,600.00 4.53%

400,000 34,000 8.50% 27,200.00 6.80%

500,000 51,000 10.20% 41,000.00 8.20%

600,000 68,000 11.33% 58,000.00 9.67%

700,000 85,000 12.14% 75,000.00 10.71%

800,000 102,000 12.75% 92,000.00 11.50%

900,000 119,000 13.22% 109,000.00 12.11%

1,000,000 136,000 13.60% 126,000.00 12.60%

5,000,000 816,000.00 16.32% 806,000.00 16.12%

10,000,000 1,666,000.00 16.66% 1,656,000.00 16.56%

EXISTING COMPANIESEFFECTIVE TAX RATES & REBATES (YA 2011)

BEFORE TAX REBATE AFTER TAX REBATE

Chargeable Income ($) Estimated Tax (S$) Effective tax rate Estimated Tax ($) Effective tax rate

100,000 8,075 0.00% 6,460 6.46%

200,000 16,575 8.29% 13,260 6.63%

300,000 25,075 8.36% 20,060 6.69%

400,000 42,075 10.52% 33,660 8.42%

500,000 59,075 11.82% 49,075 9.82%

600,000 76,075 12.68% 66,075 11.01%

700,000 93,075 13.30% 83,075 11.87%

800,000 110,075 13.76% 100,075 12.51%

900,000 127,075 14.12% 117,075 13.01%

1,000,000 144,075 14.41% 134,075 13.41%

5,000,000 824,075.00 16.48% 814,075.00 16.28%

10,000,000 1,674,075.00 16.74% 1,664,075.00 16.64%

Note:TaxRebates(CITRebate)@20%orcappedatS$10,000/-arespecificforYA2011.


PRODUCTIVITY AND INNOVATION CREDIT SCHEME

TheProductandInnovationCredit(PIC)SchemehasbeenfurtherenhancedforSingaporeBudget2011.Itisaschemetoprovidetaxincentivessoastoencouragebusinesstoinvestandupgradealongtheinnovationvaluechain.ThetablebelowoutlinesthebenefitsofPIC:

Qualifying activities Brief description of qualifying expenditures under the PIC

Total deductions/allowances under the PIC (as a % of qualifying expenditure)

AcquisitionorLeasingofPrescribedAutomationEquipment

Costsincurredtoacquire/leaseprescribedautomationequipment

400%allowanceordeductionforqualifyingexpendituresubjecttotheexpenditurecap,100%allowanceordeductionforthebalanceexpenditureexceedingthecap

TrainingExpenditure Costsincurredon:In-housetraining(i.e.SingaporeWorkforceDevelopmentAgency(“WDA”)certified,InstituteofTechnicalEducation(“ITE”)certified;orAllexternaltraining.

AcquisitionofIntellectualPropertyRights(“IPRs”)

CostsincurredtoacquireIPRsforuseinatradeorbusiness(excludeEDBapprovedIPRsandIPRsrelatingtomediaanddigitalentertainmentcontents)

RegistrationofIntellectualPropertyRights(“IPRs”)

Costsincurredtoregisterpatents,trademarks,designsandplantvariety

DesignExpenditure CostsincurredtocreatenewproductsandindustrialdesignswheretheactivitiesareprimarilydoneinSingapore

Research&Development(“R&D”) CostsincurredonstaffcostsandconsumablesforqualifyingR&DactivitiescarriedoutinSingaporeoroverseasiftheR&Ddoneoverseasisrelatedtothetaxpayer’sSingaporetradeorbusiness

400%taxdeductionforqualifyingexpendituresubjecttotheexpenditurecap*.ForqualifyingexpenditureexceedingthecapforR&DdoneinSingapore,deductionwillbe150%.Forbalanceofallotherexpenses,includingexpensesforR&Ddoneoverseas,deductionwillbe100%

Notes:TotalexpenditurecapforYA2011andYA2012-$800,000foreachofthesixqualifyingactivities.TotalexpenditurecapforYA2013toYA2015-$1,200,000foreachofthesixqualifyingactivities.

Expenditure

S$10

0,00

0

S$10

0,00

0

Deductions

S$10

0,00

0

S$40

0,00

0

TAX SAVINGS

S$17

,000

S$68

,000

Before PIC: Currently, businesses can typically deduct their expenses at cost i.e. 100% as part of the general tax regime.

Tax savings = S$100,000 x 17%

After PIC: Businesses can now enjoy 400% deduction on the cost of the same expenditure.

Tax savings = S$400,000 x 17%


Incometaxreturns(FormC) 30thofNovember

Withholdingtax 15thofthemonthfollowingpayment(ordeemedpayment)

GSTreturns(GSTF5) Onemonthaftertheendofprescribedaccountingperiod.Theprescribedaccountingperiodcanbe3months(standard)or1month(optional)

PersonalTax 15thApril

Dividends Exempt

Interest 15%

Royalties 10%

Companydirector’srenumeration 20%

Technicalassistanceandservicefees 17%

Rentonmoveableproperty 15%

Managementfees 17%

Charterfeesforshiporaircraft 0-2%

GainsthatareofacapitalnaturearenottaxedinSingapore.However,wherethereisaseriesoftransactionsorwheretheholdingperiodofanassetisrelativelyshort,IRASmaytaketheviewthatabusinessisbeingcarriedonandattempttoassessthegainsastradingprofitsofthecompany.

GSTRate 7%

Exportedgoodsandinternationalservices 0%

Financialservicesandleaseofunfurnishedresidentialproperties Exempt

CAPITAL GAINS TAX

WITHHOLDING TAX ON PAYMENTS TO NON-RESIDENTS

FILING DATES

GST / VAT


YEAR OF ASSESSMENT: CURRENT YEAR OF ASSESSMENT: 2012 (NEW)

Income Range Rate (%) Income Range Rate (%)

0–20,000 0.0 0–20,000 0.0

20,001–30,000 3.5 20,001–30,000 2.0

30,001–40,000 5.5 30,001–40,000 3.5

40,001–80,000 8.5 40,001–80,000 7.0

80,001–160,000 14.0 80,001–120,000 11.5

120,001–160,000 15.0

160,001–320,000 17.0 160,001–200,000 17.0

200,001–320,000 18.0

Above320,000 20.0 Above320,000 20.0

Note: A one-off personal income tax rebate of 20%, capped at $2,000, will be granted for the Year of Assessment 2011.

INCOME TAX RATES FOR RESIDENT INDIVIDUALS

Type of Income Rate (%)

Director’sremuneration&fees 20

Entertainer’sprofessionalincome 15

Otherprofessionalincome 15

Employee’sremuneration(Wherethetaxcalculatedonresident’sratesishigher,theresidentratesareused)

15

Short-termemployee’sremuneration(Notmorethan60days) Nil

Otherincome(Wherenotspecificallyexempt) 20

INCOME TAX RATES FOR NON-RESIDENT INDIVIDUALS


YEAR OF ASSESSMENT

2010($)

YEAR OF ASSESSMENT

2011($)

YEAR OF ASSESSMENT 2012($)

NEW

Earnedincomereliefs -Underage55-55toage59-Age60andabove

1,0003,0004,000

1,0003,0004,000

1,000 3,000 4,000

Spouserelief Toqualify,workingspousemustnotearnmorethan$2,000in2010,$4,000in2011/2012

2,000 2,000 2,000

Childrelief 4,000 4,000 4,000

Dependentparentsrelief -Livingwiththetaxpayerinthesamehousehold(eachparent)-Notlivingwiththetaxpayerinthesamehousehold(eachparent)

7,000

4,500

7,000

4,500

7,000

4,500

Coursefeerelief 3,500 5,500 5,500

CPFcashtop-uprelief -Byselforemployertoself’saccount-Byselftospouse,sibling,parents’andgrandparents’account

Upto7,000

Upto7,000

Upto7,000

Upto7,000

Up to 7,000

Up to 7,000

Foreignmaidlevy(applicableonlytoworkingmothers)

-Withoutforeigndomesticworkerconcession-Withforeigndomesticworkerconcession

Upto6,360

Upto4,080

Upto6,360

Upto4,080

Up to 6,360

Up to 4,080

Grandparentcaregiverrelief

3,000 3,000 3,000

NSman(self/wife/parent)relief

-InactiveNSmaninpreviousyear(non-keyappointmentholder)-ActiveNSmaninpreviousyear(non-keyappointmentholder)-InactiveinNSmaninpreviousyear(keyappointmentholder)-ActiveinNSmaninpreviousyear(keyappointmentholder)

1,500

3,000

3,500

5,000

1,500

3,000

3,500

5,000

1,500

3,000

3,500

5,000

CPFrelief -Age50&below-Age51to55-Age56to60-Age61to65-Above65

Upto15,300Upto13,770Upto9,563Upto5,738Upto3,835

Upto15,300Upto13,770Upto9,563Upto5,738Upto3,835

Up to 16,200Up to 14,580Up to 10,125Up to 6,075Up to 4,050

SupplementaryRetirementScheme(SRS)relief

-Singaporean/SingaporePermanentResident-Foreigner

Upto11,475

Upto26,775

Upto11,475

Upto26,775

Up to 12,750

Up to 29,750

PERSONAL INCOME TAX RELIEFS


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MULTIPLE PREMIER JURISDICTIONSRikvinspecializesincompanyincorporationinmultiplejurisdictionsofSingapore,BritishVirginIslands,CaymanIslands,HongKong,MauritiusIslands,MalaysiaandSeychelles.

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