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Singapore Fact-File Part 2:
Individual Business Domestic Taxation

2.14 Singapore Individual Business Tax-Efficient Profit Distribution

Choosing between dividends, salary and fringe benefits

No withholding tax is imposed on dividend payments, either cross-border or domestic, while salary earned in Singapore or remitted there is generally taxed progressively at up to 20% for residents (and 15% or the relevant resident rate, whichever is the higher, for non-residents. Fees paid to directors and consultants are usually subject to a 20% rate.

The favourable tax treatment of dividends in Singapore may make this the most attractive option, although obviously other factors will come into play in this decision, and the increased red tape and expense that comes along with incorporation may render the tax advantage afforded to dividends less of a draw.
 

Introductory Guides

Brief, clearly written summaries with links to relevant sections of the Fact-File. The Fact-File itself is linked in full below.

 

Fact-File

Part 1: Singapore Business Formation for Individuals

  1. Singapore Individual Business Structures
  2. Singapore Individual Business Registration
  3. Singapore Individual Business Registration Cost
  4. Singapore Individual Business Licensing
  5. Singapore Foreigners in Business
  6. Singapore Business Organisations
  7. Singapore Business Accounting
  8. Singapore Family Business Ownership
  9. Singapore Venture Capital
  10. Singapore Individual Business Franchises

Part 2: Singapore Individual Business Domestic Taxation

  1. Singapore Individual Business Tax Residence Rules
  2. Singapore Permanent Establishment
  3. Singapore Individual Income Tax Rates and Bands
  4. Singapore Personal Allowances and Business Deductions
  5. Singapore Husband and Wife Partnerships
  6. Singapore Partnership Income Taxation
  7. Singapore Limited Companies Income Taxation
  8. Singapore Business Profit Retention
  9. Singapore Business Losses
  10. Singapore Value Added Tax (VAT)
  11. Singapore Individual Business Capital Gains Tax (CGT)
  12. Singapore Individual Business Other Taxes
  13. Singapore Individual Artists Royalties
  14. Singapore Individual Business Tax-Efficient Profit Distribution

Part 3: Singapore Individual Business International Taxation

  1. Singapore Individual Business International Tax Liability
  2. Singapore Individual Business Withholding Taxes
  3. Singapore Double Tax Treaties

Part 4: Singapore Individual Business Tax-Efficient Structures

  1. Singapore Individual Business Trusts and Foundations
  2. Singapore Individual Business for Non-Residents
  3. Singapore Individual Business use of Offshore
  4. Singapore Controlled Foreign Corporation (CFC) Rules
  5. Singapore Personal Estate and Inheritance Planning

Part 5: Singapore Small Business Incentive Programs

  1. Singapore Small Business Support Schemes
  2. Singapore Training Incentive Schemes
  3. Singapore R&D Tax Credits
  4. Singapore Individual Business Tax Holidays

Part 6: Singapore Individual Business Employment Issues

  1. Singapore Individual Business Employer Responsibilities
  2. Singapore Employment vs Self-Employment Tax Issues
  3. Singapore Apprenticeship and Work Experience Schemes
  4. Singapore Employee Dismissal Rules
  5. Singapore Business Owner Employment and Invoicing Rules

Part 7: Singapore Business Owner Welfare and Lifestyle

  1. Singapore Business Social Security
  2. Singapore Business Domestic Pensions
  3. Singapore Offshore and International Pensions
  4. Singapore Individual Business Healthcare
  5. Singapore Individual Business Banking Services
  6. Singapore Education
  7. Singapore Individual or Business Leaving Singapore
  8. Singapore Domestic Real Estate
  9. Singapore International Real Estate