Singapore often referred to as the Lion City or Garden City is a republic situated in Southeast Asia. Singapore gained independence from Britain in 1963, by uniting with other former British territories to form Malaysia, but was expelled two years later over ideological differences. After early years of turbulence, the nation developed rapidly as an Asian tiger economy, based on external trade and its human capital.
Singapore is a global commerce, financial and transportation hub with a population of around 5.5 million people of various nationalities. The currency is the Singapore Dollar.
Singapore private limited companies require a minimum of one resident individual director, one shareholder, a resident company secretary and must maintain a registered office in Singapore. Corporate directors are not allowed.
Companies are taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company with some partial tax exemption. There is a tax exemption scheme for new start-up companies subject to meeting certain qualifying conditions. A company is considered a tax resident if the control and management of its business is exercised in Singapore.
Singapore has no exchange control. Also, it has no estate duty, which was abolished in the year 2008. It has a Goods and Services Tax or GST, which currently is 9%.
Singapore incorporated companies (unless exempted), which are limited or unlimited by shares and required to file their financial statements with ACRA (Accounting and Corporate Regulatory Authority), are required to file a full set of financial statements in XBRL ((eXtensible Business Reporting Language) with ACRA. Under the Income Tax Act and the GST Act, business records and accounts are required to be kept for a period of at least five years. Corporate Income Tax Returns commonly known as Form C-S or Form C are required to be filed by companies with the financial statements by 30 November of each year except dormant companies for which IRAS has waived the requirement to file.
Singapore companies are required to hold their Annual General Meeting (AGM) and file their Annual Returns. The Annual Return must be filed with the Registrar within one month after the AGM.
Singapore has also entered into Double Taxation Agreements (DTA’s) with many countries. It has so far concluded DTA’s with over 60 countries including Australia, China, Germany, India, Indonesia, Mauritius, Taiwan, Thailand, and United Kingdom.
