Singapore taxation 2011 fact sheet standard
-
Upload
maverick-tan -
Category
Business
-
view
601 -
download
1
description
Transcript of Singapore taxation 2011 fact sheet standard
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$300,000 Above S$ 300,000
8.50%
17.00%
4.25%
Tax rate
SINGAPORE CORPORATE TAX
* Qualifying conditions• Nomorethan20individualshareholders.• Wheretherearecorporateshareholders,atleast1shareholderisanindividualholdingatleast10%oftheshares.
New Startup Companies* for first 3 years of assessment
• Acompanythatdoesnotqualifyforataxexemptionfornewstart-upcompanieswillbegivenpartialtaxexemption.• Applicabletoallcompanieswith100%corporateshareholder.
For all other companies
Corporate Income Tax Rebate:A20%rebate,subjecttoacapof$10,000,willbeallowedtoeachcompanyforYA2011.
TAX-FREE DIVIDEND Taxpaidbyacompanyonitschargeableincomeisthefinaltaxandalldividendspaidtoitsshareholdersareexemptfromfurthertaxation.
0%
First S$100,000Taxa
ble
inco
me
Tax rate
S$100,001 - S$300,000 Above S$ 300,000
ZERO TAX
8.50%
17.00%
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$5,000.Tobeeligible,thecompanymusthavemadeCPFcontributionforatleastoneemployeeduringthebasisperiodofYA2011.
TAX-FREE DIVIDEND Taxpaidbyacompanyonitschargeableincomeisthefinaltaxandalldividendspaidtoitsshareholdersareexemptfromfurthertaxation.
0%
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
NEW STARTUP COMPANIESEFFECTIVE TAX RATES & REBATES (YA 2011)
BEFORE TAX REBATE AFTER TAX REBATE
Chargeable Income ($) 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.
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
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%
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
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
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
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 $2,000, will be granted for the Year of Assessment 2011.
INCOME TAX RATES FOR RESIDENT INDIVIDUALS
Type of Income Rate (%)
Director’sremuneration&fees 20
Entertainer’sprofessionalincome 15
Otherprofessionalincome 15
Employee’sremuneration(Wherethetaxcalculatedonresident’sratesishigher,theresidentratesareused)
15
Short-termemployee’sremuneration(Notmorethan60days) Nil
Otherincome(Wherenotspecificallyexempt) 20
INCOME TAX RATES FOR NON-RESIDENT INDIVIDUALS
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
YEAR OF ASSESSMENT
2010($)
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
Copyright © 2011 www.rikvin.com | [email protected] | +65 6438 8887
WHY CHOOSE RIKVIN?
MULTIPLE PREMIER JURISDICTIONSRikvinspecializesincompanyincorporationinmultiplejurisdictionsofSingapore,BritishVirginIslands,CaymanIslands,HongKong,MauritiusIslands,MalaysiaandSeychelles.
SERVICE GUARANTEEOurfilingservicesarebothaccurateandtimely.EveryorderiscarefullyreviewedbyRikvinSeniorpersonneltoidentifypotentialerrorsbeforefiling.OurwarrantiescoverourservicesagainstfilingerrorscausedbyRikvinforthelifeofyourcompany.
CONTACTABLEOurphonesareansweredduringbusinesshoursbyspecialistsandnotbyanansweringmachine.Weappreciatethevalueofyourtimeandunderstandthatapersoncannotbereplacedbytechnology.Thisisespeciallytruewhenitcomestomakingimportantbusinessdecisions.
OUTSTANDING VALUEOurpricingishighlycompetitive.Weofferexceptionalvalueandserviceinallwedo.Ourformationpackagesarecomprehensive.Wecanassureyouthatyouwillreceivequalityandbetterservice.
NO HIDDEN FEESOurpricingistransparent-therearenohiddenfees.Ourservicefeesarepresentedinfulltoourcustomers,rightupfront.
POST-INCORPORATION SUPPORTWedon’tjuststopattheincorporationofyourcompany–wealsoassistyouinallnecessarypost-incorporationdetails,suchasopeningofbankaccount,applicationforlicensesandpermits,bookkeeping,liquidation,andmanymore.
ONGOING COMPLIANCE MAINTENANCERikvinensuresthatyouundertakeallnecessaryongoingregulatoryrequirements,suchasannualreturns,ECIandFormCfiling.Wehelpkeepyourcompanyingoodstandingwithitsstateofincorporation,whichmeansyourcompanyhasmetallSingaporeregulatoryrequirementsinacorrectandtimelymanner.
PROFESSIONALLY QUALIFIEDOurstaffsareQualifiedMembersofSAICSA,Associate&PracticingMembersoftheInstituteofCharteredSecretariesandAdministrators-S’pore&UKandMembersofInstituteCharteredAccountantsofSingapore(ICPAS).
Rikvin Pte. Ltd.isaSingapore-basedfirmthatprovidesprofessionalincorporation,accounting,tax,andimmigrationservices.Rikvinhasincorporatedthousandsofcompaniessince1998.OurheadofficeisconvenientlylocatedinRafflesPlace–theheartofSingapore’sbusinessdistrict.
Incorporation Immigration Accounting Taxation
ONE-STOP SERVICE
CompanyformationinmultiplepremierjurisdictionsPost-incorporationadministrativesupport
OngoingregulatorycompliancemaintenanceandaccountingSingaporeimmigrationsupport