Director and Shareholder Income Tax Planning

Director and Shareholder Income Tax Planning 董事及股东所得税筹划

As a Company director and shareholder, you can consider withdrawing profits from the company either through Director’s remuneration, Director’s fee, or dividends. 作为公司董事和股东,你可以考虑通过董事酬金、董事费或股息从公司提取利润。

Director’s Remuneration 董事的报酬

Do note that if you are a Singapore citizen or Singapore Permanent Resident, CPF contributions are required to be made on your salary on a monthly basis. The employee’s portion of the CPF contributions is allowed as relief in your personal tax return. 请注意,如果你是新加坡公民或新加坡永久居民,公积金供款必须每月从你的工资中扣除。雇员的公积金供款部分可在你的个人报税表中用作宽减。

Director’s Fee 董事费

Director’s fees are assessed in the year that a director becomes entitled to the fees. This is regardless of when the payments are received by the director, and when the payments are accrued. Generally, there are 3 type of director’s fee 董事费是在董事有权获得该等费用的年度内评定的。这与董事何时收到款项及何时应记款项无关。一般来说,董事费有三种类型

– Director fee received in accordance to the employment contract , he/she can recognise the fee in the same year -根据雇佣合约收取的董事费,他/她可于同年确认该费用

– For director’s fees that are approved in arrears, the director is generally entitled to the director’s fees on the date the fees are voted and approved at the company’s Annual General Meeting (AGM) or Extraordinary General Meeting (EGM). -对于年底批准的董事费,董事一般有权在公司年度股东大会(AGM)或特别股东大会(EGM)投票批准费用之日获得董事费。

– For director’s fees that are approved in advance, the director is not entitled to the director’s fees on date of AGM/ EGM. Instead, he is entitled to the director’s fees as and when he renders his services for the accounting year. -对于预先批准的董事费,董事无权在周年大会/特别股东大会日期收取董事费。相反,他有权在提供有关会计年度的服务时收取董事费。

Both director’s remuneration and director’s fee are treated as deductible expenses in the company. Therefore, you will pay lesser company income tax should you received more director’s salary and director’s fee from the company. 董事酬金和董事费在公司都被视为可扣除的开支。因此,如果你从公司获得更多的董事工资和董事费,你将支付较少的公司所得税。

Dividends 股息

Dividends received by the shareholder from a Singapore Company are tax exempt under the one-tier corporate tax system. This means shareholders will not be taxed on such dividend income. In simple terms, the dividends are distributed from the company’s profit after tax. 根据一级公司税制度,股东从新加坡公司获得的股息是免税的。这意味着股东将不会对股息收入征税。简单地说,股息是从公司的税后利润中分配的。

Question: Should I pay myself director’s remuneration, director’s fee, or dividend? 问:我应该给自己支付董事酬金、董事费还是股息?

It depends on how much profit is made by the company. Business income is taxed at a flat corporate tax rate of 17%. New start-up companies (exempted private limited) are given 75% exemption on the first S$100,000 of chargeable income (profit) for the first three consecutive years of assessment. A further 50% exemption is given on the next S$100,000 of chargeable income. From the fourth year of assessment onwards, you will still benefit from about 50 % tax exemption on the first S$200,000 of chargeable income. 这取决于公司赚了多少钱。企业收入按17%的固定公司税纳税。新成立公司(获豁免的私人有限公司)在首个课税年度的应课税入息(利润)首10万新元可获75%豁免。下一笔10万新元的应课税入息可获50%的豁免。由第四年起,你仍可享有首笔20万新元的应课税入息约50%的免税优惠。

Therefore, the effective tax rate of the company for the first S$200,000 in the first 3 years of assessment is only 6.38%. From the fourth year of assessment onwards, the effective tax rate of the company for the first S$200,000 is around 8.29%. 因此,本公司前3年20万新元的实际税率仅为6.38%。自评税第四年起,公司首笔20万新元的有效税率约为8.29%。

For personal tax rate, taxes are charged progressively (0 % – 22%) on your chargeable income. 就个人税率而言,你的应课税入息须按0 – 22%的税率递增。

From YA 2017 onwards, the effective tax rate of the tax resident individual for the first S$80,000 is around 4.18%. Anything above S$80,000 will be taxed from 11.5% onwards. 从2017课税年开始,纳税居民个人首笔8万新元的实际税率约为4.18%。任何超过8万新元的税收将从11.5%起征收。

Therefore, how much to pay yourself is subject to the profit that company is going to make. 因此,支付自己多少钱取决于公司的利润。

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