Business Encyclopedia

A

Accounting and Corporate Regulatory Authority (ACRA)
Audited Financial Statement
Annual General Meeting (AGM)
Annual Report (AR)
Articles of Association
Apostille

B

BizFile
Business Grants Portal
Business Profile

C

Central Provident Fund (CPF)
Certificate Of Residence (COR)
Common Reporting Standard
Common Seal
Companies Act (Cap. 50)
Company Constitution
Company Secretary
Company Stamp
CorpPass

D

Dependant’s Pass
Directors’ Resolution in Writing (DRIW)
Dividend
Dormant Company
Double Taxation Agreement (DTA)
Due Diligence

E

Electronic Register of Members (eROM)
Employment Pass (EP)
EntrePass
Enterprise Development Grant (EDG)
Estimated Chargeable Income (ECI)
Exempt Private Company (EPC)

F

Financial Year End (FYE)
Form C-S/ C
Form C-S (Lite)
Fund Accounting

G

Goods and Services Tax (GST)

H

Hedge Fund

I

Import/Export License
Income Tax
Initial Public Offering (IPO)
Inland Revenue Authority of Singapore (IRAS)
Intellectual Property Office of Singapore (IPOS)
Interim Dividend
IR21 Form

J

K

Know Your Customer (KYC)
Knowledge Capital

L

Letter of Consent (LOC)
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
Liquidation (Court Order/Compulsory)
Liquidation (Voluntary)
Long Term Visit Pass (LTVP)

M

Ministry of Manpower (MOM)
MTI

N

Nominee Director
Nominee Shareholder
National Registration Identity Card (NIRC)

O

P

Partnership
Personal Data Protection Act (PDPA)
Personalised Employment Pass (PEP)
Private limited company
Productivity Solutions Grant (PSG)
Permanent Resident (PR)

Q

Quickbook Accounting

R

Register of Charges
Register of Nominee Director
Register of Registrable Controllers (RORC)
Registered Office Address

S

S Pass
Share
Small Company
Sole Proprietor
Special Employment Credit
Sponsored Employment Pass
Striking Off

T

Trademark
Temporary Bridging Loan
Temporary Employment Credit (TEC)

U

UEN
Unaudited financial statement
Undischarged Bankrupt

V

Variable Capital Company (VCC)
Venture Capitalist (VC)

W

Wage Credit Scheme
Withholding Tax (Section 45)

X

XBRL
Xero

Y

Year of Assessment (YA)

Z

Zero Rated Supplies
Zero-rised Financial Statement

Income Tax

Income Tax is a direct tax levied on the income earned by an individual. Singapore has one of the lowest personal income tax rates for its tax resident. It follows a progressive tax rate with the maximum personal income tax bracket of 22% for annual chargeable income over S$320,000. Taxable income comprises of all income earned from:
  • Employment – Salary, commission, bonus, gain from the sale of stock options, and payments like salary in-lieu of notice, gratuity, and ex-gratia.
  • Trade, Business, Profession, or Vocation – Income received as a self-employed person or sole-proprietor or through partnership, and income received in the form of virtual currency,
  • Property or Investments – rent from property, gains from trading in property, and interest from deposits with non-approved banks in Singapore and finance companies not licensed in Singapore.
  • Other Sources – royalties, estate or trust income, and withdrawal from Supplementary Retirement Scheme (SRS).
The total chargeable income is calculated by deducting the allowable expenses, donations, rebates, and reliefs from the taxable income.

Who needs to pay Income Tax?

Income tax rates depend on an individual’s tax residency status. You will be treated as a tax resident for a particular Year of Assessment (YA)
  • If you are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences, or
  • A foreigner who has stayed/worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA, and
  • Earning a gross income of $22,000 or more in a year.
You can calculate your estimated tax payable using the Tax Calculator for Resident Individuals. If you are not a tax resident, then the employment income is taxed at the flat rate of 15% or the progressive resident tax rates, whichever is higher. You can use the Tax Calculator for Non-Resident Individuals to calculate the estimated tax payable.