Frequently Asked Questions
-
Q1. Why is Singapore transfer pricing important?
As a regional hub for multinational corporations, the country’s transfer pricing regulations ensure that relevant parties do not underpay taxes and that taxable income is not distorted.
It also aids in the accurate and fair reporting of transactions between common entities and helps to avoid double taxation.
-
Q2. Can withholding tax be refunded?
There are a number of withholding tax provisions that allow the amount deducted to be adjusted. However, if the tax in the annual return form has already been paid, the adjustable amount can be claimed as a refund.
-
Q3. Is corporate tax in Singapore low?
In Singapore, the standard corporate income tax rate is 17 percent, but numerous incentives and breaks tend to even lower this amount in practice. Singapore has been named the ninth largest tax haven in the world in the Tax Justice Network’s Corporate Tax Haven Index 2021 due to its corporate-friendly tax regime.
-
Q4. Who pays GST in Singapore?
GST is only levied by GST-registered businesses. If a company’s annual revenue exceeds S$1 million, it must register for GST which is optional for small businesses that do not meet this threshold.