A company is liable to pay tax on income accrued in or derived from Singapore or income received in Singapore from outside Singapore in respect of:
- gains or profits from any trade or business
- income from investment such as dividends, interest and rental
- royalties, premiums and any other profits from property
- other gains of an income nature
What is not taxable
Capital gain is not taxable. Examples of receipts that are capital in nature are:
- Gains on sale of fixed assets
- Gains on foreign exchange on capital transactions
Income may be exempted from tax under the provisions of the Singapore Income Tax Act. Some examples are:
- Exempt shipping income derived by a shipping company
- Foreign-sourced dividends, branch profits & service income received by a resident company that satisfies the qualifying conditions.