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!!!
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