Singapore - Taxation
Individual and commercial incomes are taxed whether derived in Singapore or from outside sources. Types of direct taxation include income, property, estate duty, and payroll taxes; the Inland Revenue Department is responsible for the assessment and collection of all such levies. Effective in 2002, the top marginal personal tax rate was reduced to 22% and tax bands were consolidated from 10 to 7. The first $20,000 of an individual's chargeable income is not taxed. The corporate income tax rate was reduced from 25.5% to 24.5% in 2002, and then to 22% in 2003 in line with the government's commitment to reduce the rate to 20% over a three year period. Industrial establishments, companies, and various other businesses are eligible to deduct from their gross profits varying and usually generous depreciation allowances for building, plants, and machinery. There are tax holidays of 5 to 10 years for investing in robotics and other approved "pioneer" industries; other tax incentives for investing in export industries and for expansion of established enterprises; and special incentives for research and development companies to locate in Singapore. Other taxes include a goods and services tax (GST) at a rate of 3% and a stamp tax. The general property tax is 12% annually.