Business practicalities in Singapore

Land and property rights

Establishing a business in Singapore requires both a business address to receive legal notices and statutory correspondence and a residential address for ACRA’s records and for regulatory / legal accountability. Office or factory space can be found independently or through a local real estate agent. Under Singapore’s property ownership rules, foreigners are permitted to purchase most types of land or property for commercial use without government approval.

Foreigners who wish to buy property or land that is zoned as mixed use for commercial and residential need government approval. Processing time for these applications is around one month from the date of application.

Intellectual property (IP)

Supporting innovation, technology and enterprise through strong IP legislation is a key priority of the Singapore Government. As a member of the World Trade Organisation (WTO), it has committed to common standards for the protection and enforcement of IP. Singapore is a signatory to the Paris Convention, the Berne Convention, the Madrid Protocol, the Budapest Treaty and the Patent Cooperation Treaty.

Singapore has been home to a regional World Intellectual Property Organisation (WIPO) office since 2005 and continues to enhance its national IP infrastructure and accelerated patent filing procedures. The IP framework is coordinated by the Intellectual Property Office of Singapore (IPOS).

There are seven types of intellectual property in Singapore: trademarks, patents, copyright, designs, geographical indications, plant variety rights and trade secrets. The following mechanisms are used for registering IP:

Violation of IP and enforcement options:

Despite a strong IP protection framework, violations can occur. Businesses seeking to enforce their IP rights in Singapore have several options depending on the type of dispute:

• Negotiation or mediation
• Expert determination
• Arbitration
• Litigation

Most IP disputes are handled outside litigation. Government authorities can issue warnings, fines and seize counterfeit goods. If court action is required, Singapore positions itself as a regional hub for IP and dispute resolution. International IP disputes can be heard by Singapore International Commercial Court while the Singapore High Court has specialist IP and IT judges to adjudicate IP cases. Singapore ranks consistently high in global IP indexes. Its role as an IP hub for ASEAN is important for positioning Singapore as a launchpad into the region. More information can be found on the IPOS Dispute Resolution Hub. Businesses can also consult IP Australia for advice.

Import duties and tariffs 

Singapore is a founding member of the WTO and its tariffs are among the lowest in the world. It applies a Most-Favoured Nation (MFN) rate of zero to most goods, except for certain alcoholic beverages.

As the central pillar of the economic relationship, the Singapore-Australia Free Trade Agreement (SAFTA) ensures that most Australian products can enter Singapore tariff free. Market access for Australian services exporters can be conducted on a cross-border basis, which removes administrative barriers.

To find the tariff rate for specific goods from Australia, visit the Department of Foreign Affairs and Trade’s FTA Portal at ftaportal.dfat.gov.au.

Calculations and payments 

Singapore follows the WTO Valuation Agreement on imported goods. The import duty is calculated by multiplying the imported good’s dutiable value by the corresponding import duty rate. The dutiable value of imported goods is typically based on the cost, insurance and freight (CIF) level under the International Commercial Terms (incoterms).

Other taxes and charges

The Goods and Services Tax (GST) was raised to 9 per cent on 1 January 2024. The tax applies to both domestically produced and imported goods. The GST is generally not levied on goods exported from Singapore.

An excise tax is levied on alcoholic beverages, tobacco products, motor vehicles, and petroleum products and biodiesel blends.

Export duties 

Singapore does not levy duties on exports, but there are procedures involved in applying to export goods. They can be found on the Singapore Customs website.

Import and export regulations

Singapore Customs, under the Ministry of Finance (MoF), is responsible for trade facilitation enforcement and revenue collection, while the Ministry of Trade and Industry (MTI) oversees the negotiation of international trade agreements and rules. The Inland Revenue Authority of Singapore (IRAS) is also involved in matters related to the GST.

Certain goods in Singapore are subject to import restrictions for health, safety or security reasons. A list of controlled imports and exports for Singapore is available on the Singapore Customs website.

Singapore has a National Single Window system for trade declaration, called TradeNet. This platform provides a single point of entry for submission of electronic permit applications.

As part of the TradeNet process, traders must register for a Unique Entity Number with the Accounting and Corporate Regulatory Authority (ACRA) and then activate their customs account. Additional steps include applying for an Inter-Bank GIRO that is maintained with Singapore Customs to pay duties, taxes, fees and other charges. All required steps can be found on the Singapore Customs website.

Indonesia’s Directorate General of Tax (DJP) imposes a wide-ranging tax regime that includes income taxes (corporate and personal), turnover and indirect taxes (VAT and specific business tax), as well as land and buildings tax, stamp duty, carbon taxes and regional taxes.

This section provides an overview of the taxes Australian businesses can expect to face when operating in Indonesia. Not all applicable taxes are covered in this guide, and the information provided is general. Businesses should seek professional tax advice for understanding the taxes specific to their activities and the tax practices specific to Indonesia, including how tax rates and refunds are applied.

Table 1: Overview of Singapore's taxes for businesses

Corporate Income Tax (CIT)

Businesses are subject to the tax rates imposed under the corporate income tax (CIT) law. The standard CIT rate is 17 per cent. From 2025, the overseas and Singapore profits of all multinational enterprise groups parented in Singapore will be taxed at a minimum effective tax rate of 15 per cent, regardless of where they operate.

A company’s taxable income and effective tax rate depends on residency status. To be considered a tax resident, the management and control of the company must occur from Singapore. This typically means that either the Chair of the Board of a company is based in the country, key employees are in Singapore, strategic decisions are made by local directors or at least half of board members are physically in Singapore for meetings.

If the business is not deemed to be a tax resident, Australian companies benefit from the AustraliaSingapore Double Tax Avoidance (DTA) Treaty. Under the DTA, most non-resident Australian companies will be taxed only on certain portions of their income in Singapore and may pay withholding taxes at a reduced rate.

Singapore offers a range of tax benefits for companies, including cash rebates for employing local workers, tax exemptions for new start-up companies and partial exemptions for the first SGD 200,000 (AUD 226,170) of taxable corporate income.

Personal income tax 

Individuals who meet one or more of the following criteria are classified as tax residents under Singaporean law:

• A Singapore citizen or permanent resident who normally resides in Singapore 
• A foreign resident who has stayed or worked in Singapore for at least 183 days within the past calendar year, OR continuously for three consecutive years OR a continuous period between two calendar years where the total period of stay exceeded 183 days

A huge drawcard for founders moving to Singapore is they can bring their company shares to Singapore and have them grow tax free – then enjoy a CGT free exit event. There is no personal income tax on personal investments.

For individuals not classified as tax residents, income tax rates are typically governed under the Australia-Singapore DTA. Individuals who qualify as tax residents in Singapore are subject to the following progressive tax rates.

Table 2: Personal income tax rates

Auditing and accountancy play a vital role in enhancing transparency and accountability in a business, especially one engaged in a foreign market. It increases business performance by identifying risks and highlighting areas for improvement.

Accounting standard

Local and foreign businesses are required to comply with the Singapore Financial Reporting Standards (SFRS), which are based on the International Financial Reporting Standards (IFRS), when recording financial transactions.

Although the Australian Accounting Standards (AAS) are also based on IFRS, Australian businesses with Singaporean operations should review the differences between jurisdictions to ensure their records are compliant with both countries’ accounting authorities.

Accounting standards in Singapore are managed by ACRA.

Statutory audits

All companies are required to be audited at least once per year by a public accountant and in accordance with the Singapore Standards on Auditing (SSA). The SSA are generally aligned with International Auditing and Assurance Standards Board (IAASB) rules. Small companies may be exempt from auditing requirements if they have:

• Annual revenue less than SGD 10 million
• Total assets that do not exceed SGD 10 million at financial year end (FYE) 
• No more than 50 employees at FYE

Books and records 

Generally, books and records should be kept in Singapore Dollars. However, in some cases businesses can choose a different functional currency to prepare financial statements. If the business’ functional currency is deemed not to be Singapore Dollars, they must inform IRAS prior to filing. Regardless of the functional currency chosen, all amounts declared in the CIT return must be in Singapore Dollars. Singapore allows digital record keeping for tax, corporate and legal purposes, so long as the records are accurate, secure and retrievable on demand.

Businesses can determine their own financial year, defined as an accounting period of 12 months or over 52 weeks. The date chosen for FYE will determine when corporate filings and taxes are due each year.

Annual General Meetings (AGMs)

All companies in Singapore are required to hold an AGM within six months of their FYE. Private companies may be exempt from this rule if they send their financial statements to members within five months of their FYE.

Quality control 

Audits are overseen by ACRA. ACRA offers guidelines and frameworks to aid businesses in selecting an auditor. Auditors follow the standards written in the SSA.

ACRA is responsible for monitoring programs for improving audit quality. They provide industry-specific targets against which companies can compare their audit performance. ACRA is a member of the International Forum of Independent Audit Regulators.

Doing business in Singapore will often require employing local and foreign workers. Understanding Singapore’s labour market regulations and recruitment methods is crucial to building and supporting an effective team.

Labour market

Skill level: Educational attainment is high in Singapore. Nearly two in three Singaporean employees possess a degree, diploma or professional qualification. Compared to other OECD countries, Singapore ranked 4th in overall employment rates for residents aged 15 and above.

Employment contracts: Local and foreign workers can be hired under full-time, part-time, temporary and special work contracts. The employer is required to issue Key Employment Terms within 14 days of the start of employment. These terms include details of employment, hours and days required, rest days, salary, holiday leave and medical benefits and probation/notice periods.

Employers must also comply with Singapore’s fair hiring practices, guided by the Tripartite Alliance for Fair & Progressive Employment Practices (TAFEP) and the Fair Consideration Framework, which promote merit-based recruitment and non-discriminatory workplace policies.

Minimum wage: For local Singaporeans, there is no minimum wage for most sectors. Employees are paid based on individual merit, skills and experience, considering market demand and labour supply. For foreign employees, their respective employment pass will include minimum wage requirements.

Human resources and employment law: The Employment Act is the main labour law in Singapore. The Act regulates employment terms and conditions for all employees under a work contract with an employer.

Working hours: For employees working five days a week or fewer, contractual working hours are up to nine hours per day or 44 hours per week. Employees working more than five days a week are required to work no more than eight hours per day or 44 hours per week. However, Singapore’s strong work ethic means work hours often extend into nights and weekends. 

Holidays: Workers employed for at least three months are entitled to annual leave. Entitlement depends on years of service which starts at the commencement of employment.

Overtime: If an employee is required to work more than 12 hours per day, the employer must apply for an overtime exemption, up to a maximum of 14 hours per day. An employee can work up to 72 overtime hours in a month.

Overtime rates

The overtime rate for non-manual labour employees is capped at a salary level of SGD 2,600,(AUD 3,028) or an hourly rate of SGD 13.60 (AUD 15.83). The hourly basic rate of pay depends on the pay-classification of the employee and is calculated using the following formula.

Sick leave: Employees are entitled to sick leave and paid hospital care after three months of employment. Employees must be covered by the Employment Act and must inform, or try to inform, their managers within 48 hours of absence.

Social, health and unemployment insurance contributions: For Singapore permanent residents and citizens, employers must enrol them into the national pension fund (Central Provident Fund or CPF). The CPF contribution rates are as follows.

A company is not required to pay into a pension or superannuation fund for foreign employees who are not permanent residents.

Medisave is health insurance for Singapore permanent residents and citizens. Non-mandatory citizens and foreign employees can seek private healthcare. Some employees may provide financial assistance.

Ending employment: Employers and employees can unilaterally terminate an employment contract with mandatory written notice. Notice can be waived by mutual consent between employer and employee. If there is no notice period in the contract, then the notice period is dependent on the length of service, as follows:

Severance pay: Workers who have been with a company for at least two years are eligible for severance pay, whereas those with fewer than two years may receive a goodwill payment at the employer’s discretion. Severance pay is generally between two weeks and one month salary, per year of service, depending on the company’s standing and sector.

Recruiting staff

Online advertising: Online job advertisements are an effective way to access talent in Singapore and many companies recruit online to increase the likelihood of getting skilled workers. There are several useful websites in Singapore for online advertising.

• Jobstreet is a popular broad platform that covers Singapore and other Southeast Asian countries
• JobsDB is a leading online employment website that partners with Jobstreet and has job postings for Singapore, Hong Kong, Indonesia and Thailand
• Workable is an aggregate resource which condenses all Singapore hiring platforms
• Indeed is an online platform that enables potential candidates to search for jobs and post a resume
• LinkedIn provides valuable intelligence when searching for employees in a particular sector or field. Many recruitment consultants will use LinkedIn as a platform for advertising or communicating with a potential candidate

Executive search: Executive search firms can provide tailored searches for more senior roles and expatriates. As a large, regional hub with a strong financial sector, most international firms such as Ranstad, Michael Page, Ethos Beath Chapman, Stanton Chase and Morgan McKinley all have offices in Singapore.

Work permits: Foreign workers can be recruited into positions in Singapore where local hires are not able to meet the requirements. However, all foreigners must have a valid pass or work visa.

Foreign companies establishing a commercial presence in Singapore will need a local bank account to conduct business. Foreign companies may open accounts denominated in Singapore Dollars, US Dollars and other foreign currencies.

In Singapore, financial institutions may be classed as full banks, qualifying full banks, wholesale banks, merchant banks or finance companies. While all types of institutions are permitted to take deposits, the extent of other services offered may vary.

Table 3: Financial institutions in Singapore

Many banks allow foreigners to open an account online. They usually require a passport and proof of address in Singapore. It is important to be aware that due to the high bar now set for Anti-Money Laundering and Proof of Funds, opening business accounts with the major banks takes time.

When choosing a bank account in Singapore, businesses should consider which options best meets their needs. Current/transactional accounts offer ease of use but are generally not interest-bearing, whereas savings and fixed deposit accounts usually provide returns on your deposits. Foreigners may also want to consider the benefits of selecting a multi-currency account which enables individuals and businesses to hold and spend multiple currencies without exchange.

Australian banks in Singapore

Five major Australian banks have licenses to provide wholesale banking services in Singapore: ANZ, CBA, NAB, Westpac and Macquarie. They offer a range of products and services for corporate clients, including corporate and commercial banking, trade finance and cash management.

Foreign exchange controls

The Singapore Dollar is freely convertible into domestic and offshore accounts and currencies. There are no significant restrictions on transactions, including remittances, repatriation of profits or capital flows.

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