If looking for a country with all the provisions to make a profit in the business, then Singapore is your match. Most of the countries’ business approach is complex and burdens the entrepreneurs with high taxes, sloppy infrastructure, or corrupt public servants. But Singapore with a growing market shows quite a difference. Both the economy and the government policies along with cutting-edge infrastructures prove to be beneficial for endorsing a business here in Singapore.
One of the major attractions for establishing a corporation in Singapore is the simple taxation policies. With access to the market and a corruption-free government, Singapore has a lot of corporate services under its belt to help boost your business.
Business owners need not spend their time fixating on tax issues. Singapore holds many prestigious corporate accounting agencies to do the needful. These corporate agencies aid the entrepreneurs to file and plan taxes and any other financial planning. However, here is an article that brings forth an insight into the corporate taxation policy of the country.
Any business entities in Singapore both foreign or local business corporate firms, for tax purposes, are mainly registered under the Singapore Company Act. Singapore exerts simple corporate taxes which are nominal as compared to other countries. No matter whether the company is local or global, the corporate tax levied is at a flat 17%.
Tax On Corporate Profits
Singapore’s taxation policy only levies taxes on the profit incurred by the company. A firm offering corporate accounting services also assist the companies with filing timely tax returns. Here, a company is liable to pay corporate taxes only for the income accumulated in Singapore or from income acquired from outside Singapore through profits made in business, company investments, etc.
However, the taxation policy also offers several exemptions thereby reducing the corporate tax to a nominal for some corporate firms. By hiring a good accounting corporate service, one can easily avail of these exemptions and tax reliefs.
Tax On Capital Gains
Capital gains are the profit accrued by the sale of an asset owned by the organization. Capital gains occur when a corporate agency sells or exchanges an asset at a higher rate than the basic cost. In Singapore, there is no tax for such capital gains. This means if an entrepreneur sells the company, then he shall not pay any tax.
Although business incomes are taxable and capital gains are not, it is always advisable to consult a corporate agency offering accounting services.