Goods and Services Tax (GST)
With effect from 1st July 2007 the GST stand at 7%
Business with an annual turnover of more than $1 million must be registered as a 'taxable person'(not necessarily a company) and taxable person who makes taxable supplies must charge GST, a person who volunteers to be a taxable person must remain taxable for a minimum of 2 years.
*Taxable Supplies
1. Standard-Rated Supplies - Goods and Services in Singapore
2. Zero-Rated Supplies - taxed at 0%
3. Out of Scope Supplies - Supplies outside the scope of the Act
4. Exempted Supplies - Supplies that are exempted from GST
*Exemptions include sale and lease of residential properties & buildings including vacant land that is zoned 'Residential" in the Master Plan are exempted from GST.
**Residential properties include service apartments but not hotels
***Fixtures that are attached permanently to the residential property are exempted,however movable furniture and fitting are still subjected to GST.
****For lease of residential properties- only rental component is exempted.
*****Mix development, commercial portion is still subjected to GST.
Subjected to GST
1. Sale and lease of movable property
2. Sale and lease of non-residential properties
3. If the MCST's annual turnover exceeds $1 Million Dollars the maintenance fee including sinking funds are subjected to GST
*It is illegal for a non-taxable person to charge GST and also for a taxable person not to account for GST!!!
Business with an annual turnover of more than $1 million must be registered as a 'taxable person'(not necessarily a company) and taxable person who makes taxable supplies must charge GST, a person who volunteers to be a taxable person must remain taxable for a minimum of 2 years.
*Taxable Supplies
1. Standard-Rated Supplies - Goods and Services in Singapore
2. Zero-Rated Supplies - taxed at 0%
3. Out of Scope Supplies - Supplies outside the scope of the Act
4. Exempted Supplies - Supplies that are exempted from GST
*Exemptions include sale and lease of residential properties & buildings including vacant land that is zoned 'Residential" in the Master Plan are exempted from GST.
**Residential properties include service apartments but not hotels
***Fixtures that are attached permanently to the residential property are exempted,however movable furniture and fitting are still subjected to GST.
****For lease of residential properties- only rental component is exempted.
*****Mix development, commercial portion is still subjected to GST.
Subjected to GST
1. Sale and lease of movable property
2. Sale and lease of non-residential properties
3. If the MCST's annual turnover exceeds $1 Million Dollars the maintenance fee including sinking funds are subjected to GST
*It is illegal for a non-taxable person to charge GST and also for a taxable person not to account for GST!!!
© 2017 realsgestate.com. All Rights reserved. The news contained in this website is for reference and should not be treated as sales material. Users are advised to verify the accuracy from the source and make reference to other sources of market information to obtain an objective view of the property market. realsgestate shall not be liable for any loss for any decision made by users based on information in this website.