I plan to engage in entrepot trade in Singapore and am not very clear about the tax - paying situation in this regard. I would like to ask whether it is necessary to pay taxes for entrepot trade in Singapore. If so, what types of taxes are generally involved? And what are the tax - paying standards? I hope friends who know this information can tell me. Thank you.
Want to know about tax payment matters for entrepot trade agency, inquiring about involved tax types, tax calculation basis, payment procedures, and preferential policies. The best answer indicates it mainly involves VAT and corporate income tax. General VAT taxpayers have a 6% rate, small-scale taxpayers 3%. Corporate income tax is typically 25%. Taxes should be declared and paid according to regulations, with eligible cases qualifying for additional deductions and other benefits. Specifics depend on actual business and local policies.
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Professional consultant answers
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
For entrepot trade in Singapore, it is usually necessary to pay taxes. The main tax type involved in Singapore is the Goods and Services Tax (GST). The GST is similar to the value - added tax. The current standard rate is 7%, but if the goods in entrepot trade meet relevant conditions, a zero - rate may be applicable, that is, no GST needs to be paid. This generally requires that the goods only stay in Singapore briefly and have not undergone substantial processing in Singapore, etc.
In addition, if the entrepot trade involves specific goods, such as tobacco, alcohol, petroleum products, etc., other tax types such as customs duties may also be involved. However, the overall customs duty level in Singapore is relatively low, and most goods have a zero - tariff. Regarding corporate income tax, if the profit generated from entrepot trade is sourced outside Singapore and meets the relevant regulations of Singaporean tax - resident enterprises, it may enjoy tax exemption. However, the specific tax - paying situation still needs to be accurately grasped based on the details of the actual business. It is recommended to consult a professional tax advisor or a professional institution like Zhongshitong.
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
Under normal circumstances, if the goods in entrepot trade in Singapore are not consumed or processed locally, the GST is mostly at a zero - rate. But if there are some value - added activities locally, it may be necessary to pay GST as required.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
Singapore has a relatively flexible management of entrepot trade. Most regular entrepot goods are not subject to customs duties, except for special goods. For example, there may be different policies for the entrepot of luxury goods.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The key to tax payment for entrepot trade depends on the nature and process of the goods. If the goods are purely in transit and their nature has not changed, the tax - paying situation is relatively simple, basically a zero - rate GST.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
In addition to the GST, if an enterprise makes a profit from entrepot trade, it may need to pay corporate income tax. But if the profit source is compliant and meets the conditions for exemption of overseas income, it can also be reduced or exempted.
Elizabeth LiYears of service：3Customer Rating：5.0
Compliance and risk managerConsult
When engaging in entrepot trade in Singapore, attention should be paid to the stay time and state of the goods. If the stay time is short and there is no substantial change, less tax is paid; if the stay is long or there is processing, it is more complicated.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Tax payment for entrepot trade in Singapore is also related to whether there is local sales. If it is only a transit without local sales, less tax is paid; if there is a local sales behavior, relevant taxes need to be paid as required.
Michelle ChenYears of service：3Customer Rating：5.0
Business coordination consultantConsult
For entrepot trade, the Singapore Customs will determine whether taxes are required and the tax rate according to the HS code of the goods, etc. Therefore, accurate classification of goods is very important.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
When an enterprise engages in entrepot trade, it should keep relevant logistics and transaction vouchers, etc. to prove the authenticity of the business, which is also helpful for the determination of tax payment.