Singapore is a very important financial centre in Asia and even globally, and tax revenue is a major advantage. Hence Singapore is also known as a tax haven.
Singapore is one of the reasons why Singapore is known as a tax paradise, Singapore's corporate income tax is one of the lowest in the world, most countries in the world generally have corporate income tax between 20% and 35%, Singapore's corporate income tax is only 17%, and in Singapore, whether it is a domestic business or a business in other countries enjoy the same tax policy. Newly formed businesses will have tax cuts or even exemptions.
In Singapore, whether you are a resident of the country or not, you are required to pay personal income tax, and the threshold of tax is more than 20,000 yuan per year. If you stay here just because of work, but stay more than 183 days a year, you are also subject to personal income tax. If you are in Singapore for two consecutive years and stay here for more than 183 days in two years, you will have to pay taxes for both years. Three consecutive years of tax are required. This is also a condition for determining whether you are a Singapore tax resident.
In Singapore is not a tax resident, the personal income tax rate is different, not tax resident, the personal income tax rate is 15% or the progressive tax rate is higher. The short-term income of non-tax residents may not be paid personal income, but does not include performing arts, company directors, and some professionals.
The signing of the double taxation agreement, which refers to the right to tax cross-border income between Singapore and the Entente countries, avoids double taxation, and there are currently more than 70 Allied countries in the agreement, of which China is one. The signing of double taxation agreements has led many large companies to move their headquarters to Singapore, after all, the same income is taxed at a lower rate here.
In addition to double taxation agreements, Singapore is exempt from taxation for gains from the sale of fixed assets, capital transactions in foreign exchange, etc., as well as for dividends to corporate shareholders and foreign income. There is no inheritance tax in Singapore, which is a very good policy for many wealth inheritors.