sg-tax-expert

| Tax Type | Rate | Authority | Key Deadline |

|----------|------|-----------|--------------|

| Personal Income Tax | 0-24% progressive | IRAS | Apr 15 (paper) / Apr 18 (e-filing) |

| Corporate Tax | 17% (effective ~8.5% for first $300K) | IRAS | Nov 30 (ECI), Dec 15 (Form C-S/C) |

| GST | 9% (from Jan 2024) | IRAS | 1 month after accounting period |

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Tax Residency

• Tax resident: Physically present or employed in Singapore ≥183 days in a calendar year
• Non-residents taxed at flat 24% (or progressive rates, whichever is higher)

2024/2025 Tax Brackets (Residents)

| Chargeable Income | Rate | Tax Payable |

|-------------------|------|-------------|

| First $20,000 | 0% | $0 |

| Next $10,000 | 2% | $200 |

| Next $10,000 | 3.5% | $350 |

| Next $40,000 | 7% | $2,800 |

| Next $40,000 | 11.5% | $4,600 |

| Next $40,000 | 15% | $6,000 |

| Next $40,000 | 18% | $7,200 |

| Next $40,000 | 19% | $7,600 |

| Next $40,000 | 19.5% | $7,800 |

| Next $40,000 | 20% | $8,000 |

| Next $500,000 | 22% | $110,000 |

| Above $1,000,000 | 24% | — |

Key Reliefs & Deductions

| Relief | Amount | Notes |

|--------|--------|-------|

| Earned Income Relief | $1,000 (below 55) | Auto-included |

| CPF Relief | Actual contributions | Capped at OW ceiling |

| NSman Relief | $1,500-$5,000 | Based on activity |

| Parent Relief | $9,000-$14,000 | Conditions apply |

| Spouse Relief | $2,000 | Spouse income <$4,000 |

| SRS Contributions | Up to $15,300 (citizen) | Tax-deferred |

| Course Fees Relief | Up to $5,500 | Approved courses |

Founder-Specific Optimization

1. Salary vs Dividend Mix

- Salary: Tax-deductible for company, taxable personally

- Dividends: Not tax-deductible, but one-tier system = no additional tax

- Optimize: Pay enough salary for CPF, remainder as dividends

1. Director's Fees

- Taxable in year of approval (not payment)

- Defer approval to next year if beneficial

1. SRS Contributions

- $15,300/year (citizens/PRs), $35,700 (foreigners)

- Reduces taxable income now, 50% taxable on withdrawal at retirement

1. Timing Income

- Bonuses: Control approval date to shift between tax years

- Consulting income: Invoice timing matters

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Headline Rate: 17%

Partial Tax Exemption (All Companies)

| Chargeable Income | Exemption |

|-------------------|-----------|

| First $10,000 | 75% exempt → $2,500 taxable |

| Next $190,000 | 50% exempt → $95,000 taxable |

Effective tax on first $200,000: ~$16,575 (8.3% effective rate)

Startup Tax Exemption (First 3 Years)

For qualifying new companies:

| Chargeable Income | Exemption |

|-------------------|-----------|

| First $100,000 | 75% exempt |

| Next $100,000 | 50% exempt |

Effective tax on first $200,000: ~$8,125 (4.1% effective rate)

Qualifying conditions:

• Incorporated in Singapore
• Tax resident in Singapore
• ≤20 shareholders (all individuals, or 1 corporate + individuals)
• Not an investment holding or property development company

Key Deductions

| Deduction | Rate | Cap |

|-----------|------|-----|

| R&D (qualifying) | 250% | — |

| IP registration costs | 200% | — |

| Automation equipment | 100% + CA | — |

| Donations (approved IPCs) | 250% | — |

| Training (approved courses) | 400% | — |

Filing Deadlines

| Form | Deadline | Notes |

|------|----------|-------|

| ECI | Within 3 months of FYE | Estimated Chargeable Income |

| Form C-S | Nov 30 | Simplified, revenue ≤$5M |

| Form C | Dec 15 | Full form |

| AGM | Within 6 months of FYE | First AGM within 18 months |

| Annual Return | Within 7 months of FYE | To ACRA, not IRAS |

Optimization Strategies

1. Timing Expenses

- Accelerate deductible expenses into current FY if profits high

- Defer income recognition if possible

1. Related Party Transactions

- Must be at arm's length

- Document transfer pricing policies

1. Holding Structure

- Singapore has extensive DTAs (80+ countries)

- Consider holding company structure for regional ops

1. Carry-forward Losses

- Unlimited carry-forward (subject to shareholding test)

- Can offset against future profits

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Current Rate: 9% (from Jan 1, 2024)

Registration Threshold

| Basis | Threshold | Action |

|-------|-----------|--------|

| Retrospective | Taxable turnover >$1M in past 12 months | Must register within 30 days |

| Prospective | Expect >$1M in next 12 months | Must register within 30 days |

| Voluntary | Below threshold | Can register voluntarily |

What's Taxable

| Category | GST Treatment |

|----------|---------------|

| Local goods/services | Standard-rated (9%) |

| Exports | Zero-rated (0%) |

| Financial services | Exempt |

| Residential property sale/rent | Exempt |

| Digital services (imported) | Subject to GST |

Input Tax Claims

Can claim: GST paid on business purchases

Cannot claim:

• Private expenses
• Medical expenses (with exceptions)
• Club memberships
• Motor vehicle expenses (with exceptions)

Founder Considerations

1. Voluntary Registration

- Pros: Claim input tax, appear established

- Cons: Compliance burden, 2-year lock-in

1. Pricing Strategy

- B2B: Customers claim back, less price sensitive

- B2C: 9% impacts competitiveness

1. Export-Heavy Business

- Zero-rated output, claimable input = GST refunds

- Consider voluntary registration

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Personal Tax

• Mar 1: Form B1 available
• Apr 15: Paper filing deadline
• Apr 18: E-filing deadline
• May-Sep: NOA issued

Corporate Tax

• ECI: 3 months after FYE
• Form C-S/C: Nov 30 / Dec 15
• Tax payment: 1 month after NOA

GST

• Quarterly filing: 1 month after quarter end
• Payment: Same as filing deadline

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Scenario A: Early-Stage, No Revenue

• Personal: Likely no tax (no income)
• Corporate: File nil ECI, no tax
• GST: Not registered (below threshold)

Scenario B: Growing, <$200K Profit

• Personal: Optimize salary/dividend split
• Corporate: Enjoy startup exemption (~4% effective)
• GST: Monitor $1M threshold

Scenario C: Scaling, >$1M Revenue

• Personal: Max out SRS, consider timing
• Corporate: Normal partial exemption (~8%)
• GST: Mandatory registration

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• [ ] Calculate estimated personal tax liability
• [ ] Optimize salary vs dividend split
• [ ] Estimate corporate tax with exemptions
• [ ] Determine GST registration requirement
• [ ] Create tax calendar with deadlines
• [ ] Prepare checklist for tax filing
• [ ] Research specific deductions/reliefs
• [ ] Model different scenarios

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| Resource | URL |

|----------|-----|

| IRAS Personal Tax | https://www.iras.gov.sg/taxes/individual-income-tax |

| IRAS Corporate Tax | https://www.iras.gov.sg/taxes/corporate-income-tax |

| IRAS GST | https://www.iras.gov.sg/taxes/goods-services-tax-(gst) |

| Tax Calculator | https://www.iras.gov.sg/taxes/individual-income-tax/basics-of-individual-income-tax/tax-calculator |

| ACRA | https://www.acra.gov.sg |

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This skill provides general guidance. Tax situations are individual. For:

• Complex structures → Consult tax advisor
• Cross-border income → Consult tax advisor
• Significant optimization → Consult tax advisor
• IRAS queries/audits → Engage tax agent

The goal is to help you understand the landscape and prepare, not replace professional advice.