Wednesday, April 07, 2010

Taxes Imposed Guide on Internet Business

Taxes Imposed On Internet Goods & Revenue

  • Under Singapore's tax laws, revenue earned from internet operations based in Singapore is subject to income tax. This applies to both personal and business income. 

  • Goods or services bought and sold online by GST-registered persons are also subject to Goods and Services Tax (GST) in the same manner GST would apply to offline transactions. 

  • Where physical goods are imported into Singapore, import GST is imposed. However, GST is not imposed if digitised goods (e.g. electronic books) are imported into Singapore through the Internet. This is because digitised goods are viewed as services for the purposes of GST and there is currently no GST on imported services.

    See:• Inland Revenue Authority of Singapore (IRAS)
    • e-Tax Guide: Income Tax Guide on e-Commerce (PDF)

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