SINGAPORE LAW AND PRACTICE Contributed by: Jeffrey Lim, Daniel Lim, Frederick Tay, Genevi Lim, Lakshmanan Anbarazan, Sarah Lai, Stephanie Goh and Tobias Andreas Satria, Joyce A. Tan & Partners LLC
• No person may acquire as a going concern the designated businesses or part thereof conducted by the Designated Gas Licensee or Designated Entity unless the person, and the licensee, the enti - ty or the trustee manager of the business trust (as the case may be) obtain the prior written approval of the EMA. In determining whether to grant approval, the EMA will consider whether: • the person acquiring the business is a fit and proper person; • the acquisition will affect the security and reliabil - ity of the supply of the conveyance of gas to the consumers’ premises and the designated business activities will continue to be conducted prudently and in compliance with the provisions of the GAS; and • it is in the public interest to do so. 9. Tax 9.1 Taxation of Business Activities Corporate Income Tax (CIT) CIT is charged at a headline rate of 17% of a com - pany’s chargeable income. Company v partnership A “company”, for income tax purposes, refers to a: • business entity incorporated or registered under the Companies Act 1967; • foreign company registered in Singapore; or • foreign company incorporated or registered outside Singapore. A partnership (including limited partnership and lim - ited liability partnership) is not considered a separate legal entity for the purpose of tax computation, there - fore CIT is not imposed on the partnership’s income. Rather, taxes are imposed on each partner’s share of the partnership’s income: • Where a partner is a tax resident individual, pro - gressive individual income tax rates apply.
• Where a partner is a “company”, a CIT rate of 17% applies. Source of income Regardless of where a “company” is registered or incorporated, CIT applies to: • income accrued in or derived from Singapore (“Singapore-sourced income”); or • income received or deemed received in Singapore from outside Singapore. Stamp Duty For sale of non-residential properties, the following apply: • buyer stamp duty; and • seller stamp duty, for industrial property. Goods and Services Tax (GST) GST is chargeable on all “taxable supplies”, which: • refer to supplies of goods or services made in Singapore that are not exempt supplies under the Goods and Services Tax Act 1993; and • can be taxed at the prevailing GST rate of 9% or zero-rated (ie, 0% rate applies). Property Tax This applies at a flat rate of 10% of the annual value of non-residential properties. 9.2 Withholding Taxes on Dividends, Interest, Etc Withholding Tax (WHT) WHT is generally imposed on prescribed payments that are deemed sourced in Singapore and paid to non-Singapore tax residents – eg, interest, royalties, rent for movable property and fees for management or technical assistance. Dividends In Singapore’s single-tier corporate tax system, divi - dends paid by any Singapore-resident company in respect of its shares to a foreign investor-shareholder are not taxable in the investor-shareholder’s hands. Accordingly, dividends are not subject to WHT.
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