GST and Tax Compliance Singapore — Singapore GST 9% and India GST for Indian Businesses 2026

GST and Tax Compliance Singapore — Dual-Country Tax Management for Indian Businesses 2026

Indian businesses with Singapore operations navigate two separate indirect tax regimes: Singapore's Goods and Services Tax (GST) at 9% and India's GST at 5%–28%. Additionally, corporate income tax, transfer pricing between the Singapore and India entities, and FEMA compliance add to the compliance matrix. MICS provides integrated dual-country tax compliance for Indian businesses in Singapore.

Singapore GST (Goods and Services Tax)

Singapore GST Basics

• Rate: 9% (increased from 8% in 2024)
• Registration threshold: SGD 1 million annual taxable turnover (mandatory registration above this)
• Voluntary registration: businesses below threshold can register voluntarily
• GST return: quarterly GST F5 return filed online via IRAS myTax Portal
• Payment: due by the end of the month following the quarter end

GST on B2B Services to India

Indian companies billing India-based clients from Singapore:

• Zero-rated supply: services supplied to India customers are generally zero-rated (0% GST)
• Excluded services: certain services connected with Singapore-based assets remain taxable
• Input tax credit: Singapore GST on business expenses is claimable for zero-rated suppliers
• Correct zero-rating: documentary evidence required (contracts, client details)

GST on B2C Digital Services

• Overseas Vendor Registration (OVR): from 2020, foreign digital service providers must register if exceeding SGD 100k revenue to Singapore consumers
• MICS helps Singapore-registered Indian businesses manage OVR obligations if serving Singapore consumers

Import GST

• Singapore import GST: GST on goods imported into Singapore (Low Value Goods below SGD 400 from 2023)
• Deferred import GST: Major Exporter Scheme (MES) for high-import businesses

Singapore Corporate Income Tax

• Rate: 17% flat rate on chargeable income
• Start-up tax exemption: first SGD 100,000 exempt (75%), next SGD 100,000 exempt (50%) for first 3 years
• Partial exemption: ongoing scheme for established companies
• Annual return: ECI (Estimated Chargeable Income) due 3 months after financial year end
• Income tax return: Form C-S or Form C filed with IRAS
• Withholding tax: 17% on royalties, management fees paid to non-residents (India parent)

Transfer Pricing (Singapore–India)

For Indian companies with management fees, royalties, or intercompany service charges between Singapore and India entities:

• Arm's length principle: IRAS and Indian income tax authorities scrutinise intercompany prices
• TP documentation: mandatory for transactions exceeding SGD 15 million per year
• Country-by-Country Reporting (CbCR): for groups with global revenue above SGD 1.125 billion
• Advance Pricing Agreement (APA): bilateral India-Singapore APA available through CBDT
• MICS prepares TP documentation for Singapore-India intercompany transactions

India GST for Parent Entity

The India parent entity receiving services from Singapore subsidiary:

• Import of Services: GST payable under reverse charge mechanism (RCM) in India
• Place of supply: Singapore-origin services used in India — RCM applies
• GSTR-1 and GSTR-3B: reverse charge reporting in India GST returns
• ITC: RCM GST paid is claimable as input tax credit in India

FEMA Compliance (Singapore Investment)

• ODI (Overseas Direct Investment): FEMA ODI regulations for Indian company investing in Singapore subsidiary
• Form ODI: initial investment filing with authorised dealer bank
• Annual Performance Report (APR): annual reporting to RBI on Singapore subsidiary
• Remittances: dividend, royalty, management fee repatriation back to India
• MICS manages FEMA compliance and annual ODI reporting

Double Taxation Avoidance Agreement (DTAA)

India-Singapore DTAA provides:

• Withholding tax reduction: on dividends, interest, royalties between the two countries
• Capital gains: Singapore resident companies exempt from India capital gains on shares (subject to limitations)
• MICS advises on DTAA structuring for optimal India-Singapore tax treatment

Pricing

• Singapore GST compliance: SGD 500–1,500/quarter (Rs. 30,000–95,000)
• Singapore corporate tax: SGD 1,500–5,000/year (Rs. 95,000–3,20,000)
• India GST + reverse charge: Rs. 3,000–8,000/month
• Transfer pricing documentation: SGD 5,000–15,000/year
• FEMA + ODI compliance: Rs. 10,000–25,000/year

Free India-Singapore tax consultation: +91 9355273535 | admin@mics.asia