Singapore is one of the best options for start-up, not only because of its strong economic development but also government incentives and support for businesses. After completing the procedures to incorporate a company in Singapore, the business will enjoy many government incentives for income tax.

In this content, Global Links Asia will provide the information about current tax exemption scheme in Singapore.

The purpose of this article is to provide clarifications on taxation of foreign-sourced income for Singapore companies. Note that the information provided is for general purpose only and not meant to replace professional tax advice.
In order to determine whether the income is subject to taxation in Singapore, we need to find answers to the following questions:

1. Does the income qualify as foreign-sourced income?
2. Was the foreign-sourced income "received" in Singapore?
3. Was the foreign-sourced income "received" in Singapore subject to taxation overseas?

Singapore is a strong advocate of small and medium enterprises. As such, it implemented various measures to encourage more private limited start-up companies.

The dividend income (profit after tax) of a company can be disposed of in any manner that the company sees fit.

In Singapore, the tax related information must be filed with IRAS two times.

To attract more investments, Singapore provides tax exemption on capital gains provided that these earnings are not derived solely from investments trading.

Royalty income, whether generated in Singapore or generated outside but received into the country, is subject to tax.