If you plan to move to Singapore and set your base, you will be happy to know that residents are entitled to certain tax allowances on personal entities, with a graduated system ranging from 0% to 22%, determined by your income. Non-residents, however, pay a flat rate of 22%. When it comes to earnings and income, it can be tricky trying to navigate the financial waters and ensure you are above board, so be sure to have your Tax Identification Number in order and your payroll up to date.
Taxation rates vary depending on your situation, so as you settle into your new life, you can have peace of mind that Singapore has been considered one of the lowest personal income tax rate countries in the world, great for capital gains and inheritance which is not taxable. Moreover, having these regulations in place makes Singapore a tax haven for business owners with its favourable policies. The corporate tax is a flat rate of 17%. This does not go to say, however, that it is not expensive to reside here; it can be comfortable compared to New York rentals, with a 14.81% higher rating on the cost of living.
Getting Started
The world as we know it is as digitally advanced and technologically forward as we could have hoped for, and having a unique “Tax Identification Number (TIN)” helps us not only keep up with and keep track of our taxes but the government is aware of whether we are (or aren’t) up to date with payments and can assist us as needed. All you need to know about Singapore’s Tax Identification Number will be covered in this article, and we will learn more about how to apply for it should you need one, where to get it, and what is needed.
What is Tax Identification Number (TIN)?
This nine or ten-digit number assigned by the Inland Revenue Authority of Singapore (IRAS) to citizens and businesses is solely for the purpose of taxation. The bearer’s details are printed on their NRIC card and are mandatory for dealers or traders who transact in any business that attracts VAT, making it a must-have if you have your own company.
If you are a citizen of Singapore, however, you can find your Tax Identification Number from your Singapore National Registration ID card, but this differs from a foreigner, who would need to check his Unique Account for his TIN.
Known globally as one of the top financial centres, Singapore, while densely populated, is highly competitive in the economic sector and encourages and, to a certain extent, entices foreign business with its public legislation and friendly legal frameworks. Therefore, ensuring you have your tax number and details in order and up-to-date will benefit you in the long run.
Application
It may seem daunting when you first think of having to fill out your TIN application form, as the information needed is overwhelming, and many people feel anxious about getting it right, though it is pretty simple. The number can be obtained by registering on the SingPass website. IRAS issues the TIN, and if you are a foreigner, you will still need to register by applying for an IRAS Unique Account.
This will become your digital fingerprint and significantly simplify your tax filing and payment. And as you expand your business and the services it offers, it will come in very useful for:
- Importing and exporting goods, as having the TIN card, will help clarify where the funds have come from, and you can then be taxed accordingly.
- When updating your information on the ACRA Bizfile, you will need the number to access your profile and make amendments to the information on hand.
- As a business owner with employees on your books, you will need their TINs as well as your own to remit Central Provident Fund (CPF) payments for all of them, with government discernment on how much will need to be levied for each employee.
Variations of the TIN in Singapore
Too often, people assume that for many things, one size fits all when they move to a foreign country and set up shop, but knowing which identification documents you need can prevent a lot of headaches when it comes to rectifying the necessary paperwork, and also prevent trouble with the authorities. The two main considerations when referring to and applying for a TIN in Singapore are:
- UEN – Unique Entity Number: Issued by the Accounting and Corporate Regulatory Authority of Singapore (ACRA) for businesses and business owners.
- TRN – Tax Reference Number: Issued by the Inland Revenue Authority of Singapore (IRAS) and assigned to Singapore Citizens.
Who Can Get a UEN?
This number is given to both foreign and local entities such as societies or businesses and LLPs, and essentially any entity that requires multiple transactions with the Singapore government is given this card.
Do You Need TIN?
If you have a business or even as an individual working for a corporation, you need to be filing your taxes, and for this, you will need a Tax Identification Number (TIN). As each financial year end approaches, furnishing your earnings and GST payments can help you maintain good working ethics while in a foreign country or as a duty to your homeland if you are a citizen.
Thus being said, as a final thought on the topic, yes, you do need to apply for and obtain your personal tax number in Singapore.
A Round-up
Whether you are a first-time arrival in Singapore or are a citizen coming of age, or even better, an entrepreneur with a business venture in Singapore, be sure to do your research and apply for the correct TIN.
Manage and pay your taxes on time, be it personal or corporate, and you too will reap the benefits of an economic system that is flourishing in a country which is the perfect spot to set up shop when trying to reach the Asian market; another good thing is that consumer expectations here are akin to the Western world.
Singapore is as beautifully majestic as it is stable when it comes to the business sector, being run by a government that always has its citizens’ and visitors’ best interests in mind.
If you are a business owner in Singapore and want to stay compliant and up to date with all taxation requirements, you should engage a corporate tax consultant to manage everything for you. This way, you can concentrate on growing your business worry-free while all the statutory requirements are taken care of by the experts.
