Tax Compliance & Advisory

Singapore’s prevailing corporate income tax rate is 17% of chargeable income. A company’s effective tax rate may be lower after applicable exemptions, rebates, deductions, allowances and incentives. The prevailing GST rate is 9%. Different treatment may apply to zero-rated, exempt or out-of-scope supplies.

Qualifying new start-up companies may receive a 75% exemption on the first S$100,000 of normal chargeable income and a further 50% exemption on the next S$100,000 for their first three consecutive Years of Assessment. Companies that do not qualify for the start-up scheme may generally benefit from the partial tax exemption: 75% on the first S$10,000 of normal chargeable income and 50% on the next S$190,000. Other deductions, allowances and incentive schemes may be available depending on the company’s activities, investments and industry. Some require a separate application and approval by the relevant authority. We can review your circumstances, identify potentially relevant areas and coordinate additional specialist input where required.

Estimated Chargeable Income, or ECI, is an early estimate of a company’s taxable profits for a particular Year of Assessment. It is generally filed within three months after the end of the company’s financial year unless a filing waiver or another exception applies. The annual corporate income tax return reports the company’s actual income based on its completed accounts and tax computation. Filing ECI does not replace the annual return. They are separate parts of the corporate tax cycle.

Yes. A company that made a loss is still generally required to file its annual corporate income tax return, and its ECI obligations should also be reviewed. A dormant company must continue filing its annual return unless IRAS has granted a waiver. For tax purposes, dormancy generally means that the company did not carry on business and received no income throughout the relevant basis period. If a company resumes business or receives income after obtaining a waiver, IRAS must be notified in accordance with the applicable requirements.

A business must generally register for GST if its taxable turnover exceeded S$1 million during the calendar year or if it can reasonably expect its taxable turnover to exceed S$1 million in the next 12 months. The assessment is based on taxable turnover rather than total sales, and supporting evidence is required for a prospective forecast. Exceptions may apply, while businesses below the compulsory threshold may also consider voluntary registration. We can review your turnover, supply profile and projections to help determine the appropriate position.

Withholding tax may apply when specified payments are made to a non-resident. Examples include certain interest and loan related payments, royalties, payments for the use of intellectual or movable property, management fees and fees for services performed in Singapore. The treatment depends on the nature of the payment, the recipient, where the relevant work is performed and whether an exemption or an applicable double taxation agreement provides relief. It is best to assess the position before the amount is paid or credited so that any filing and payment obligations can be managed properly.

We can assist with reviewing related party transactions, assessing whether transfer pricing documentation requirements may apply, coordinating the necessary financial and intercompany information, conducting benchmarking analysis, and supporting the preparation or review of relevant documentation. We can also assist with information requests or tax reviews involving related party transactions. Where the matter requires an advance pricing arrangement, complex economic analysis or advice across multiple jurisdictions, we can work alongside the appropriate specialist advisers within an agreed scope.

Yes. We can work alongside your existing internal team and external advisers, whether we are responsible for a defined part of the tax process or providing broader ongoing support. At the outset, we will agree who is responsible for providing records, preparing computations, reviewing positions, approving submissions and corresponding with IRAS. This gives everyone a clear role and helps the work progress efficiently.

Fees are quote based and reflect the scope and complexity of the work required. An engagement may cover recurring tax compliance, a defined advisory matter, a tax review or a combination of services. Before work begins, we will provide a proposal setting out the agreed scope, responsibilities, timing and fees, including any applicable GST or external charges. If the requirements change, we will discuss the implications with you and agree the appropriate way forward.