Book a consultation with our business solution specialist today

Simplifying Goods & Services Taxation

GST Singapore

GST Singapore, formally known as Goods and Services Tax, is a broad-based consumption tax levied on the import of goods as well as nearly all supplies of goods and services in Singapore. Collected by the Inland Revenue Authority of Singapore (IRAS) and Singapore Customs, GST applies at each stage of the supply chain, making it essential for businesses to understand their obligations and plan accordingly.

What is GST

GST in Singapore is currently charged at a rate of 9%, effective from 1 January 2024. It applies to most goods and services supplied by GST-registered businesses, as well as goods imported into the country. However, certain categories are exempt from GST, including the provision of financial services, the sale and lease of residential properties, the supply of investment precious metals, and transactions involving digital payment tokens. Additionally, the export of goods and provision of international services are zero-rated, meaning they are taxable but charged at 0%.

Any business operating in Singapore with an annual taxable turnover exceeding S$1 million is required to register for GST. Businesses below this threshold may still choose to voluntarily register if it benefits their operations, for example, to claim input tax on business purchases. Once registered, businesses must charge and account for GST on their taxable supplies, file regular GST returns, and maintain proper records for at least five years.

More about GST:

gst-basics

Learn the Basics of GST

Goods and Services Tax (GST) is a consumption tax in Singapore levied on imported goods and most supplies of goods and services at each stage of the supply chain. Understanding GST Singapore basics — from registration thresholds to exemptions — is essential for staying compliant and avoiding penalties.

general-gst-schemes

General GST Schemes

Explore our comprehensive GST scheme database, featuring widely available options such as the Major Exporter Scheme and Import GST Deferment Scheme. These general GST Singapore schemes are designed to simplify compliance, improve cash flow, and reduce administrative burden for businesses of all sizes.

industry-specific-gst-schemes

Industry-Specific GST Schemes

Leverage our expertise in industry-specific GST schemes tailored to sectors like aerospace, shipping, and fund management. We assess your business’s risk profile and deliver customised GST Singapore solutions — from scheme eligibility evaluation to IRAS application and ongoing compliance support for your needs.

Capital Allowances

Deductions for the decline in value of depreciating assets are available under the Uniform capital allowance (UCA) system. In addition to the rules for depreciating assets, deductions are allowed for certain other capital expenditure.

Small business entities have the option of choosing simplified depreciation rules. Under these rules, small business entities can claim an immediate deduction if the cost is below the relevant threshold or else add the asset to the small business depreciation pool.

Land, trading stock and most intangible assets (excluding exceptions such as intellectual property and in-house software) are not depreciating assets.

The decline in value is generally calculated by spreading the cost of the asset over its effective life, using one of two methods:

Prime cost method – decline in value each year is calculated as a percentage of the initial cost of the asset
Diminishing value method – decline in value each year is calculated as a percentage of the opening depreciated value of the asset
MORE: Australian Taxation Office (ATO) Decline in value calculator.

For most depreciating assets, taxpayers can either self-assess the effective life, or use estimates published by the ATO. Taxpayers can recalculate, either up or down, the effective life of an asset if the circumstances of use change and the effective life initially chosen is no longer accurate. An improvement to an asset that increases its cost by 10% or more in a year may result in an obligation to recalculate the effective life of the asset.

Decline in value of cars is restricted to the car limit. From 1 July 2022, the luxury car tax threshold for luxury cars is $64,741 (it was $60,733 for the year commencing 1 July 2021). Luxury car leases are treated as a notional sale and purchase, with decline in value restricted to the car limit.

The decline in value of certain depreciating assets with a cost or opening adjustable value of less than $1,000 can be calculated through a low-value pool. The decline in value for depreciating assets in the pool is calculated at an annual diminishing value rate of 37.5%.

Changes for 2022 and 2023

From 12 March 2020 until 31 December 2020, the asset cost threshold for the instant asset write-off (which is usually only available to small business entities) has increased from $30,000 to $150,000 and the eligibility criteria expended to cover entities with an aggregated turnover threshold of less than $500 million (up from $50 million).

Further, from 12 March 2020 until 30 June 2021 the Backing business investment measure applied to businesses with aggregated turnover below $500 million and provides either:

A deduction of 50% of the cost or opening adjustable value of an eligible asset on installation (existing depreciation rules apply to the balance of the asset's cost), or
For businesses using a small business depreciation pool, a deduction of 57.5% of the cost of the asset in the first year, with the balance added the asset to the small business pool
In addition, from 6 October 2020 to 30 June 2023, full expensing applies to allow eligible businesses with an aggregated turnover of less than $5 billion to deduct the full cost of new eligible depreciating assets. For businesses with aggregated turnover of less than $50 million, full expensing also applies to eligible second-hand assets.

Activity Statement

Businesses use activity statements to report and pay a number of tax obligations, including GST, pay as you go (PAYG) instalments, PAYG withholding and fringe benefits tax. Non-business taxpayers who need to pay quarterly PAYG instalments also use activity statements.

Activity statements are personalised to each taxpayer to support reporting against identified obligations.

Activity statements for businesses may be due either quarterly or monthly. Generally, businesses can lodge and pay quarterly if annual turnover is less than $20 million, and total annual PAYG withholding is $25,000 or less. Businesses that exceed one or both of those thresholds will have at least some monthly obligations. Non-business taxpayers are generally required to lodge and pay quarterly.

Taxpayers with small obligations may be able to lodge and pay annually. Some taxpayers may receive an instalment notice for GST and/or PAYG instalments, instead of an activity statement.

The Australian Taxation Office (ATO) web site provides instructions on lodging and paying activity statements. Detailed instructions are provided for each of the different tax obligations:

GST (Goods and Services Tax)
PAYG (Pay As You Go) Instalments
PAYG (Pay As You Go) Withholding
FBT (Fringe Benefit Tax)
LCT (Luxury Car Tax)
WET (Wine Equalisation Tax)
Fuel Tax Credits