In general, individuals are liable to Singapore income tax only on income accruing in or derived from Singapore.
Various categories of personal investment income from qualifying unit trusts, real estate investment trusts, bonds and bank deposits are exempt from tax.
Under the law, an individual’s business income is determined in the same way and subject to the same deductions as a corporation. However, it is usually more difficult for an individual to claim certain business deductions.
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Tax - A Matter of Moral or Rule of Law?
In the course of running a business, having to pay taxes is a testimony that one has done well in the business. That said, it has always been a taxpayer’s right to arrange its business within the framework of the law to minimize the tax burden. Some tax payers have taken this to a great distance and they have successfully created and implemented elaborate schemes with the use of entities in exotic jurisdictions or tax havens.
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.