CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Singapore To Enforce New Top Income Tax Rate

Singapore To Enforce New Top Income Tax Rate

by Mary Swire, Tax-News.com, Hong Kong

12 March 2015


The Inland Revenue Authority of Singapore is to closely monitor company formation behavior to ensure that high income earners do not set up companies to avoid the higher personal income tax (PIT) rates announced in the 2015/16 Budget.

The Senior Minister of State for Finance and Transport, Josephine Teo, announced the initiative when delivering the Ministry of Finance Committee of Supply Speech on March 9. She was replying to comments that the higher PIT rates, including a 22 percent top rate (compared with the previous highest rate of 20 percent), could result in lower tax receipts.

Commenting on concerns that high-income earners could attempt to pay Singapore's lower 17 percent corporate income tax instead, she made it clear that IRAS "takes the evasion of tax seriously" and will closely monitor the future establishment of companies.

She confirmed that in cases where companies are being set up mainly to avoid PIT, the approach of IRAS is "to disregard the corporate structure and assess the income on the individuals," and that "the agency will step up its audit programs to detect and deter tax avoidance and evasion."

TAGS: individuals | compliance | Finance | tax | business | tax compliance | tax avoidance | corporation tax | Singapore | tax authority | tax rates | individual income tax

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »