How GST for companies works?
GST is a tax on domestic consumption. It is a form of value-added tax, which applies to goods and services supplied in Singapore by businesses in Singapore, and to goods and services imported into Singapore.
How Goods and Services Tax (GST) works in Singapore
GST is a tax on domestic consumption. It is a form of value-added tax, which applies to goods and services supplied in Singapore by businesses in Singapore, and to goods and services imported into Singapore.
Singapore currently has a 8% GST, imposed on goods and services supplied in Singapore as well as on importation of goods. A business is required to register for GST if its annual taxable supplies is SGD1 million or more. A GST-registered business is required to file GST returns on a quarterly basis.
Since 1 Jan 2020, GST is payable on electronic or digital services provided by GST-registered overseas service providers.
From 1 Jan 2023, GST will apply to all remote services (i.e. digital services and non-digital services) purchased by consumers in Singapore from GST-registered overseas service providers.
From 1 Jan 2023, GST will also be extended on goods valued at S$400 or below which are imported into Singapore via air or post and purchased from GST-registered suppliers.
Click here to download the Doing Business in Singapore 2023 guide
Goods and Service Tax (GST) rate changes from 2023
In the Singapore 2022 budget statement, the Minister for Finance announced that the Goods and Service Tax (GST) rate will be raised under two trenches: 1. Increase from 7% to 8% with effect from 1 Jan 2023; and 2. 8% to 9% with effect from 1 Jan 2024.
Corporate Taxation
A corporation is generally liable for Singapore income tax on all income accruing in, or derived from Singapore, as well as foreign sourced income remitted or deemed remitted into the country.
Other Indirect Taxes
Other indirect taxes are not significant except for excise duties mainly on tobacco and liquor, betting duties and various duties related to vehicle ownership.
Our experts
Elaine Chow Partner, Tax
