Singapore has a territorial system of taxation, where income derived from or accrued in (sourced in) Singapore and income received in Singapore, are exigible to tax. While capital gains are not taxable in Singapore, all forms of income are taxable. In practice, this has placed a fair amount of strain on the distinction between income and capital gains, which has seen a good number of cases discussing this issue.
The headline Singapore Corporate Income Tax rate is 17%, but several concessionary rates do exist, covering situations where certain conditions are met. The Personal Income Tax rate is progressive, increasing in tax bands from 0% to a maximum of 22%. The Income Tax Act is the main statute governing Income Tax in Singapore, with its provisions covering Corporate Income Tax, Personal Employment Income Tax, Personal Self-Employment Income Tax, the income taxation of trusts and Withholding Tax; all under one single statute.
I co-authored a fairly comprehensive introduction to Singapore Income Tax for the Singapore Academy of Law in 2018, which may be accessed here or at: https://www.singaporelawwatch.sg/About-Singapore-Law/Commercial-Law/ch-28-income-taxation.
One of the main legal reference texts for Income Tax in Singapore is Halsbury’s Laws of Singapore (Vol 16(2): Revenue and Taxation- or at Income Tax), (2020) (LexisNexis), which I worked on with Liu Hern Kuan in 2020.
Other articles and publications relating to Singapore Income Tax which I have worked on in recent years include:
- “A Framework for Understanding the Taxation of Digital Tokens” (2021) 50(4) Australian Tax Review (Forthcoming)
– [Supported by the Tax Academy of Singapore Research Grant]
- “The Taxation of Cryptocurrency Gains” (2021) 75(7) Bulletin for International Taxation 1-13
- “Taxing All Other Income in Singapore and Malaysia” (2019) 19(2) Oxford University Commonwealth Law Journal 204-226
- “The Tax Treatment of Haircuts in Financial Reorganizations” (2020) 26 Revenue Law Journal (With Aurelio Gurrea-Martínez) 1-18
- “Singapore’s Special Insolvency Scheme for Small Companies” (2021) 102(8) Tax Notes International 1053-1055 (With Aurelio Gurrea-Martínez)
- “Business Vehicles”, Lexis Practical Guidance- Singapore Tax, (2017)
- “Partnerships”, Lexis Practical Guidance- Singapore Tax, (2017)