Singapore Is the Dream Business Destination for Foreigners
It is true that most foreign companies have already established their offices in Singapore and are reaping the benefits by way of excellent sales of their products. Singapore is a market that is stable and supports new businesses. There is an excellent market for new products in Singapore. Innovative ideas get huge support in Singapore from funding organizations and this has helped many new entrepreneurs to see their ventures become reality.
Foreign companies who come to Singapore get excellent support from the government for setting up their companies. The procedure for incorporating the company is simple and straightforward. There is no corruption or red tape in the country. For those who cannot register the companies by themselves, there are highly competent agencies that will get the job done at a very affordable price. These consultants offer a lot of attractive packages that include other services too.
An Attractive Tax Rate Helps Business
Another important aspect that lures companies to set up offices in the country is the Singapore corporate tax rate which is one of the lowest. The current corporate tax rate is 17% with a lot of exemptions and rebates. New companies which are incorporated in Singapore can get tax exemption for the first three years provided they fulfill certain conditions. The company can enjoy tax exemption for the first three years if it is incorporated in Singapore and is tax resident here. The company need to have above 20 shareholders. At least one shareholder must own 10% of the shares.
During the first year, the company can get full tax exemption up to a turnover of S$100,000. They will get 50% exemption for S$200,000 above the first S$100,000. For the subsequent two years, they will get exemption of 75% of the chargeable income for the first S$100,000 and 50% exemption for the next S$100,000. This will help the companies to invest the money that they saved in taxes.
Tax on Income Earned Abroad
Singapore does not charge tax on income which is already taxed in other countries. This is due to the double taxation agreements signed with many countries. Income earned in other countries by Singapore companies is not taxed if the income has already been taxed in the other country. The country must have a corporate tax rate of 16% minimum.
The income that is received in Singapore from foreign earnings is taxed. If the income has been directly remitted or brought into Singapore by other means, then it would be charged tax. If the money earned abroad is used to pay off a loan that has accrued in Singapore. The income earned abroad will also be charged if the money is used by any movable property and brought into the country.
The best way for businessmen to understand completely about taxation is to get in touch with a corporate consultant. These people are experts in the field and can advise you properly on the matter. They will help you to prepare the estimated chargeable income statement on which basis the IRAS will charge the tax if you fail to submit this document the department will issue a notice to the company. Consultants can help you submit the statement on time.
Living the Rest of Your Life in Singapore
Singapore is a country that everyone loves to spend their lives in. it has all the modern amenities and a calm and peaceful atmosphere. This is the reason why many foreigners who work here apply for the Singapore permanent resident status which can be applied by anyone with an employment pass. The corporate consultants will help you with this.
Another service that the consultant provides for the foreigners in Singapore is to follow up on employment pass rejected cases and find out the reasons. They can help correct whatever mistakes were there and help you get the pass.
