Singapore is a unique independent “city-state” with low tax rates, high incomes, and very low unemployment figures. Singapore is growing rapidly and attracting companies from all over the world, with few barriers to entry. If you are thinking of starting or growing a business in Asia, now is the time to look at Singapore.
As with any expansion, there are challenges to growing your business and managing payroll in Singapore. Trading across borders and costs associated with exports, as well as registering property, setting up mandatory employee funds and procuring worker’s compensation insurance can be hindering.
The corporate tax rate in Singapore is 17%. The amount of taxable income varies each year and is based on calendar. Filing deadlines are November 30th for paper filings and December 15th if filing electronically.
The Singapore Employment Act provides statutory practices for employee contracts, pay, and benefits including:
- 7-14 days of paid leave per year
- Sick and holiday leave
- Salaries must be paid in timely fashion
- Childcare leave
- Safeguards against wrongful dismissal
Foreign workers require visas, with the type of visa based on:
- Income level that will be earned
- Type and Duration of work
- Spousal and family connections
As of July 2018, Singapore has made it more difficult for employers to hire foreign workers to encourage hiring Singaporean citizens. Companies offering a monthly salary below 15,000 SGD and employing 10 or more full-time employees must post the position on the National Jobs Bank for a 14 day minimum, giving citizens a chance to apply for the position.
Our revolutionary cloud-based payroll with customized reporting gives you real-time access to your payroll in Singapore. Blue Marble provides HR and compliance solutions to ensure you stay up to date with the latest employment law and payroll changes. Our US-based team and in-country experts are here to help when questions come up. Get started today and simplify your payroll in Singapore.