Taxation of an LLC in Singapore

Updated on Monday 03rd June 2019

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The limited liability company (LLC) is one of the preferred forms of doing business in Singapore. It offers many advantages, from a convenient degree of liability for founders to certain tax exemptions or incentives, depending on the type of business. The taxation of an LLC in Singapore is convenient, mainly because there is a partial exemption on the first 300,000 SGD of chargeable income.

Our experts in setting up a private limited company in Singapore can help you understand the taxation principles for this type of business structure and the advantages it offers.

The corporate income tax for a Singapore LLC

The corporate income tax is one of the main taxes levied on companies in Singapore. The tax burden in this city is a low one compared to other locations throughout Asia and this is one of the main reasons why investors choose to set up a business here. The income tax for companies in Singapore has a 17% rate and a partial exemption applies on the first 300,000 SGD of chargeable income. Branches in the city are taxed at the same 17% rate and benefit from the same partial exemption. Moreover, branches are subject to the provisions of the double tax treaties signed by Singapore.

 Companies need to consider accounting in Singapore and the reporting requirements which are specific to the city-state. One of our experts in the registration of private limited companies in Singapore can answer your questions related to these issues.

Other taxes for a PTE LTD in Singapore

Singapore has a low tax regime. However, apart from the corporate income tax, these are the other main taxes for limited liability companies in Singapore:
  • the goods and services tax;
  • the stamp duty;
  • the property tax.

There is no capital gains tax in Singapore. The goods and services tax is the equivalent of the value-added tax and has different rates, with a standard rate of 7 percent. Investors looking for accounting services in Singapore for limited liability companies or any other types of businesses can contact us.