Establishing a company in Singapore is a significant business decision that requires careful consideration. The Lion City is one of the best places in the world to do business, boasting a clear legal system, excellent infrastructure, specialized workforce, and favorable tax regime for startups.
Tax incentives for startups: Singapore consistently creates the most conducive environment to attract and nurture startups. The purpose of these tax incentive programs is to help these businesses save costs, enhance development opportunities, and mitigate barriers in their business operations. This not only encourages startups to invest in new business activities and expand operations but also boosts competitiveness globally. Moreover, these tax incentive programs reduce the tax burden on companies, increase profit potential, and lower management costs. They also facilitate a more favorable business environment, allowing companies to focus on business development without concerns about high tax liabilities.
Low corporate tax rates: Singapore adopts a territorial tax system with a corporate tax rate of 17%. Compared to other countries, Singapore’s current tax rate is relatively low, maintaining its position as one of the most tax-friendly systems globally. Furthermore, Singapore employs a single-tier tax system on income, meaning business profits are only taxed once, and dividends distributed to shareholders are tax-exempt.
Application of Double Tax Agreements (DTAs): Singapore has signed DTAs with over 80 countries. The primary aim of these agreements is to prevent income from being taxed twice when transferred between Singapore and another country. Additionally, these DTAs provide reduced tax rates and specific income exemptions for both signing nations.
