Foreign Companies And Income Tax On E-commerce Transactions In Singapore: Is A Foreign Company That Sets Up A Web Site In Singapore Liable For Income Tax?

A company with its business operations outside Singapore, but that sets up a website in Singapore would not be considered as having its business operations in Singapore and would not be subject to income tax for those transactions that are enacted outside of Singapore. However, the treatment for tangible goods is different from intangible goods. In case of intangible goods, withholding tax may still arise on the payments received by the company.

The following questions have been addressed in this article:

Is a company dealing with tangible goods with its business operations outside Singapore, but with a web site in Singapore, liable for income tax?
Is a company dealing with intangible goods with its business operations outside Singapore and a web site in Singapore liable for income tax?
Explain the concept of withholding of tax in relation to e-commerce transactions.

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