Tax rate and Tax Exemption
for FYI 2008
Information on Tax Exemption when preparing tax return and
tax planning
Tax rate 2008
From 2008 onwards, the tax rate is 18%
Tax Exemption
The Partial Tax Exemption is enhanced
as follows:
|
Exempt
income
|
|
|
- First $
10,000 @ 75%
|
7,500
|
|
- Next
$290,000 @ 50%
|
145,000
|
|
|
152,500
|
|
Saving
at 18%
|
27,540
|
Tax Exemption Scheme for New Start-up Companies
(Enhanced)
|
Exempt
income
|
|
|
- First $
100,000 @ 100%
|
100,000
|
|
- Next
$ 200,000 @ 50%
|
100,000
|
|
|
200,000
|
|
Saving
at 18%
|
36,000
|
Potential tax saving for newly form companies eligible
for full tax exemption is $8,640 per year and a total tax
saving of $25,380 for three years.
The tax exemption is granted on up to $300,000 of the normal
chargeable income (excluding Singapore franked dividends) of a
qualifying company, for any of its first three consecutive YAs.
The first YA refers to the YA relating to the basis period
during which the company is incorporated.
With effect from YA 2009, if at least
10% of the shares are held by individualm it qualify for
full tax exemption. Prior to YA 2009, all the shareholders must
be individual. Any company that does not meet the qualifying
conditions for any of its first three consecutive YAs would
still be eligible for partial tax exemption.
Tax exemption for foreign
source income
Foreign-sourced dividends, foreign branch profits and
foreign-sourced service income remitted into Singapore on or
after 1 June 2003 by a Singapore resident company will be tax
exempt if:
* the tax rate of the foreign country from which
income is received from is at least 15% in the year the income
is received; and
* the foreign income had been subjected to tax in the
foreign country from which they were received.
We will be pleased to assist you with the services for tax
preparation and tax planning
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|