Types of direct taxes levied in Singapore include the following: Personal income tax Company income tax Property tax Estate duty Stamp duty
	For details on taxation charges and rates, please refer to www.iras.gov.sg. All enquiries can be made with the IRAS directly.
	You can also seek a tax advice from a lawyer or an accountant. At Tan, Chan & Partners, we are also happy to support you with our professional taxation services ( www.tanchan-cpa.com ).

Personal Income Tax

	Persons liable to income tax: All persons receiving income in Singapore and resident within Singapore of whichever nationality. All persons resident outside Singapore who derive income from Singapore
	Personal income tax rates For Year of Assessment (YA) 2002, income is taxed at graduated rates from 3% to 26%. For YA 2003, income will be taxed at graduated rates from 4% to 22%.

Company income Tax

	The corporate tax rate was reduced by 1% to 24.5% for YA 2002.
	For YA 2003, corporate tax rate will be 22%.

Property Tax

	W.e.f July 2001, property tax rate for industrial, commercial and let-out residential properties is 10%.
	Owner-occupied dwellings are taxed at a concessionary rate of 4%.

Goods and Services Tax (GST)

	GST of 3% was implemented in April 1994 in Singapore. W.e.f Jan 2003, the GST rate will be raised from 3% to 4%. W.e.f Jan 2004, the GST rate will be raised 5%.
	GST is levied on all imports of goods. It is also levied on supplies of goods and services made by taxable persons with Inland Revenue Authority of Singapore (IRAS).
	The Singapore Customs & Excise Dept is responsible for the collection of GST on imported goods.
	All businesses with a taxable turnover of exceeding $1million are required to register themselves for GST. Businesses with less than $1million in turnover may choose to register for GST voluntarily.

Taxation For Foreigners While Working in Singapore

	Foreigners who work in Singapore either on Work Permit or Employment Pass are subjected to be taxed in Singapore unless: He is here on short term employment (other than as a director or a public entertainer) not exceeding 60 days in the calendar year, or His earnings are exempt from tax under the Avoidance of Double Taxation Agreement between Singapore & the country of his residence.
	However, if the foreigner works in Singapore on a Professional Visit Pass, he will be taxed regardless of his length of service in Singapore.
	Residence Status For income tax purposes, the amount of tax payable would depend on the level of income and whether the person is treated as a resident or a non-resident in Singapore. He will be regarded as a tax resident if: He has been in Singapore for at least 183 days in a calendar year; or He has been physically present or working in Singapore for 3 consecutive years even though the number of days he is in Singapore is less than 183 days in the 1st and 3rd year.
	Tax Rate As a tax resident, he will be taxed on all income derived in Singapore and any overseas income which is remitted, transmitted or brought into Singapore. However, he will be entitled to the personal reliefs given under the Income Tax Act. Income (less personal reliefs) is taxable at the graduated rates of Personal Income tax from 3% to 26% for YA 2002 and at a flat rate of 22% for YA 2003.
	Non-resident Individual A foreigner will be regarded as a non-resident for income tax purposes, if he is physically present or working (other than as a director) in Singapore for less than 183 days in a calendar year. As a non-resident, he will be taxed only on income derived in Singapore and he will not be entitled to personal relief given to residents. His income will be taxed at the flat rate of 15% or resident rates, depending on whichever is higher. If he is a non-resident director or a public entertainer (ie. a stage, radio or television artiste, a musician, an athlete or an individual exercising any profession, vocation or employment of a similar nature, his Singapore sourced entertainment income will be taxed at a flat rate of 15%.
	Tax treaties A foreigner, whose country of residence has a tax treaty with Singapore, may be protected from being taxed twice on the same income, depending on the provision of the treaty. Please see www.iras.gov.sg for the various countries that have established tax treaties with Singapore.
	Filing for Annual Income Tax Returns An income tax form will be sent to tax payers’ correspondence address annually for their returns. Completed forms must be submitted to IRAS within a specified time period. Alternatively, the form can be obtained in the IRAS website.
	Cessation of Employment & Tax clearance Under the law, an employer is required to inform IRAS in writing’ not less than 1 month, before any non-Singapore citizen (foreigner) ceases employment or leaves Singapore for more than 3 months. The employer must file Form 21 for tax clearance and to withhold any monies due to the employee until the expiry of 30 days after the IRAS has been notified of such cessation or he has been granted permission to release the monies or fund. There are, however some exemptions from tax clearance. These include: Employment period not exceeding 60 days in a calendar year Employment period exceeding 183 days in a calendar year and income of less than $18,000 (as it is treated as resident for tax purposes and would not be liable to tax after deduction of personal reliefs & rebates). Employees affected by re-structuring, re-engineering, merger or takeover (since there is no cessation of employment but a mere change of employer due to the re-structuring etc).

Tax Returns For Sole Proprietorships And Partnerships

	W.e.f YA 1994, IRAS implemented a new & much simple format of Income Tax Form B (for sole proprietorships) and Form P (for partnerships) where only 4 line statements are required as follows: Turnover Gross Profit/(Loss) Allowable Deductions Adjusted Profit/(Loss)
	Notwithstanding the new format, businesses are still required to prepare certified statement of accounts and to keep proper accounting records of all business transactions. However, the certified statement of accounts need not be submitted if the business turnover is less than $500,000.
	Non Allowable Deductions Personal expenses eg. Personal medical fees, salaries, drawings etc. are not deductible for income tax purposes. Capital expenses such as preliminary expenses of license & registration fees, signboard fee etc are not deductible for income tax purposes.
	Adjusted Profit/Loss Adjusted profit/loss is gross income less allowable expenses and any capital allowance claimed. Professional advice eg. an accountant may be sought for the filing of tax returns and clarification of allowable costs and capital allowance for tax purposes.