Corporate Tax Singapore: Get Essential Insights & Guidance

Corporate tax Singapore is significant because of its favorable tax laws and other advantages that directly affect company profitability, promote investment, and uphold Singapore's standing as a global leader.
Businesses with their headquarters or incorporation in Singapore are required to pay taxes on their gains and losses, accordingly.

A company is defined as follows by the Inland Revenue Authority of Singapore (IRAS):

 - A business entity registered under the Singapore Company Act; 

- A foreign company, such as a branch, that is registered in Singapore;

- A foreign business that is registered or established outside of Singapore.

In Singapore, businesses pay taxes based on the earnings they made during the preceding fiscal year, which is typically worth a full year. It's known as the base period in tax parlance.

Year-End Evaluation
This implies that 2023 taxes will be applied on income made in 2022. 2023 is the Year of Assessment (YA) for taxes.

Tax Percentage
IRAS examines the income, expenses, and further supporting schedules to determine the tax liability. Businesses pay a fixed tax rate of 17% of their chargeable revenue.

Chargeable Earnings
Chargeable income is calculated as the taxable income of the company less the permitted expenses for the assessment year. Every year, all businesses are required to file two Corporate Income Tax Returns with IRAS.

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