FAQs  Scope of Tax

What is the procedure of taxing a company(both foreign and local) in Singapore?

A company, regardless of whether it is a local or a foreign company, will be taxed on its:

• income accruing in or derived from Singapore; or
• income received in Singapore from outside Singapore

How income is assessed?

Income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending in the year preceding the YA.

What is the meaning of Companies with December financial year end?

Your company's accounts are to be prepared up to 31 December each year. The basis period for each YA is the preceding calendar year ended 31 December.

Example, your company's basis period for YA 2008 is from 1 Jan 2007 to 31 Dec 2007.

What is the meaning of Companies with non-December financial year end?

Your company's accounts are prepared up to the financial month for each year. Assuming your financial year end is 30th June, your accounts are prepared up to 30th June each year. The basis period for each YA is the preceding accounting year ended 30th June.

Example, your company's basis period for YA 2008 is from 1st Jul 2006 to 30th Jun 2007.