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Explore the tax system of another country of your choice

1. Tax policy system:
+ summarize different types of tax (taxpayers, taxable objects)
+ difference from Vietnam
2. Tax administration system
+ Types of tax offices and their main functions

+ difference from Vietnam
3. Post links/ sources of your information
Group 1, 2
Group 3,4
Group 5,6

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1.     Tax policy system:
- How many types of taxes? List ...
- Explain some types of tax that are different from VN

Property taxes: in the UK. There are two forms of property tax in the UK. When you buy a property in the UK over a certain threshold you must pay Stamp Duty Land Tax (SDLT). SDLT only applies to residential properties valued more than £125,000, or to non-residential land and properties bought for more than £150,000.

UK dividend tax: If you own shares in a UK company you may get a dividend tax payment. You are not required to pay UK dividend tax on the first £2,000 of dividends you receive in the tax year

Wealth taxes in the UK

Capital gains tax in the UK

Inheritance taxes in the UK

Car, road, and airport taxes in the UK: If you drive in the UK you will need to pay car and road tax, including when you register your car with the DVLA (Driver and Vehicle Licensing Agency). The amount varies per vehicle type, with car and road tax in the UK based on factors such as the size of the engine, type of fuel used, and CO2 emissions.

Social security taxes in the UK: If you’re working in the UK, both you and your employer will most likely need to make National Insurance Contributions (NICs). There is no ceiling to such contributions and they are not deductible from compensation for income tax purposes.

2. Tax administration system
- Overview

In UK, HM Revenue and Customs is the authority responsible for the collection of taxes in the UK. Unlike Vietnam, HMRC is not part of a government ministry. Facilitate the legalization of international trade activities, protect UK security, finance, economy, society and property first, collect national trade statistics. In addition, HMRC helps families and individuals by providing financial assistance through tax credit payments and is a child rights administrator.
- Compare structure of office: different from VN?
- Or focus on the adminstration aspects that are better than VN

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I.Tax policy system
Xem note nhóm 1 + 2 (kết hợp)
1. Income taxes
Taxpayer: Anyone considered a resident of the UK
Taxable: any wages and earnings from employment and profits from self-employment

2. Corporation Tax
Taxpayer: Any incorporated business (i.e., a company registered with the Companies House)

Taxable: Corporate tax in the UK applies to limited companies; foreign companies with a UK branch or office; clubs, co-operatives, or other unincorporated associations; and self-employed persons set up as a limited liability company.

3. Inheritance tax

Taxpayer:  all official residents, whether national or from overseas, on all of their worldwide movable assets.

Taxable: inheritances

4. Value-Added Tax
Taxpayer: Organization, Business  individual

Taxable: business sales - for example when you sell goods and service, hiring or loaning goods to someone, selling business assets, commission, items sold to staff - for example canteen meals, business goods used for personal reasons, ‘non-sales’ like bartering, part-exchange and gifts

5. Customs duty tax
Taxpayer: Business individual, organization

Taxable:- Anything posted or couriered to you from another country goes through customs to check it is not banned or restricted and you pay the right tax and ‘duty’ on it.
- excise good
- worth more than £135

If you’re charged Customs Duty, you’ll need to pay it on both:
- the price paid for the goods
- postage, packaging and insurance
II. Tax administration system
HM Revenue & Customs (HMRC) is the UK government department responsible for the business of the former Inland Revenue and HM Customs and Excise. The site contains documents on all budgets and pre-budget reports since 1994, including the text of the budget speeches and associated press releases.

III. Post Link
https://www.expatica.com/uk/finance/taxes/a-complete-guide-to-the-uk-tax-system-758254/?fbclid=IwAR22udlDzM2J-BJpm0P5qdPURfs7U1vQnO4NL_8DF0DecljPTnifdBZeRQs#:~:text=Basic%20UK%20taxes%20include%20income,incomes%20pay%20a%20higher%20rate

https://www.gov.uk/vat-businesses

https://uk.practicallaw.thomsonreuters.com/4-106-3216?transitionType=Default&contextData=(sc.Default)&firstPage=true&fbclid=IwAR3H-IMjCJEHq97adY3ScCNKqG8F1N1xcMB5AcMa1qp23kEWGVxFEceU7pM

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Expat Guide to the United Kingdom | Expatica

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Learn more about the UK tax system, estimate your income tax, and discover if you'll be classed as a resident or non-resident taxpayer.

Though many sources will characterize the UK tax system as complex - it is arguably one of the longest sets of tax codes in the world - from a macro view, the British tax system for most expats is relatively straightforward. If you're living and working in the UK, or have taken up UK retirement, you are typically liable to pay UK taxes. However, what is taxed depends on your tax residency status and individual circumstances.

This complete guide to the UK tax system includes:

The British tax system

HM Revenue and Customs (HMRC) is responsible for administering and collecting taxes in the UK. Tax receipts for the UK totaled approximately £584.5 billion in 2020/21, a decrease of 7.7% from the previous tax year.

Basic UK taxes include income taxes, property taxes, capital gains, UK inheritance taxes, and Value Added Tax (VAT). Many of these are progressive taxes, meaning that those with higher incomes pay a higher rate.

The British fiscal system applies throughout the United Kingdom: England, Scotland (though there are some specific differences owing to Scotland's unique legal system), Wales, Northern Ireland, and many of the smaller islands around the British coast. Furthermore, it includes oil drilling platforms in British territorial waters, though, notably, it excludes the Channel Islands and the Isle of Man.

One interesting aspect of UK tax is that it treats spouses as separate entities and taxes them as individuals, with the exception of a small allowance for the purpose of income taxes.

Before you can pay taxes in the UK, you need a national insurance number. Furthermore, you may also need to apply for a Skilled Worker visa (formerly Tier 2 visa). Now that the UK has left the EU, this also applies to citizens of the European Economic Area (EEA). The deadline to apply for the free EU Settlement Scheme was 30 June 2021, but there are a few cases in which you can apply after the deadline.

Federal taxes in the UK

Taxes in the UK may involve payments to at least three different levels of government: the central government (HMRC), devolved governments (notably, Scotland), and local governments in the form of council taxes.

HMRC administers the following central taxes:

Corporation tax

Capital gains tax

Inheritance tax

Insurance premium tax

Stamp, land, and petroleum revenue taxes

Environmental taxes

Climate change and aggregates levy and landfill tax

Value-Added Tax (VAT)

Customs duty;

Excise duties

Local taxes in the UK

Local governments are responsible for administering council tax in the UK. In addition, they levy a limited number of fees and charges, such as street parking fees.

Taxes on goods and services in the UK

Value-Added taxes (VAT) in the UK apply to almost all goods and services. These may also be applicable to goods that you bring to the UK from abroad if you exceed the limits. New rules introduced in January 2021 mean if you import or order items online from outside the UK and the total does not exceed £135, you pay VAT at the point of sale.

The standard commercial tax rate in the UK is 20%, although certain goods and services are subject to lower UK commercial tax rates. VAT exemptions are also available on certain items, for example, long-term medical supplies.

The current UK commercial tax rates are:

Can you get a refund on VAT?

Tourists and visitors to the UK can shop tax-free during the course of their stay. They are entitled to claim a refund on any VAT paid for goods bought within the country - provided they take these items with them when they leave the UK.

In most cases, the shop or refund company charges you a fee for using tax-free shopping. Such refunds must be claimed by the last day of the third month after the month in which you bought them. These are only available to tourists, visitors, and UK nationals living abroad for at least 12 months.

If you belong to one of these categories, you must be able to prove this to the shop assistant and to customs when you leave the UK by showing your passport, visa, or other documents.

Items ineligible for VAT refunds

Presently, tax-free shopping or VAT refunds do not apply to the following:

Services of any kind (for example, hotel bills)

Goods that you've used, or partly used, in the UK (such as perfume or chocolates)

Motor vehicles and boats

Goods over £600 in value that will be exported for business purposes (you have to use a form C88 for these)

Goods that will be exported as freight and goods that need an export license (except antiques)

Unmounted gemstones and bullion

Mail-order goods including internet sales

Not all retailers offer tax-free shopping. If you want to claim a VAT refund, you'll first need to find a shop that does and ask the store for a VAT check or refund, which you'll need to sign in the presence of the shop assistant. Present this form, together with your purchase receipts, ticket, passport, and boarding card at specified UK customs offices upon your departure; most ports and airports have one.

Once the form has been validated, you can either drop it in a customs post box or take it to a VAT refund office or agency to get your money, either in cash or via a refund to your credit card.

More information on VAT refunds is available on the HMRC website.

Who has to pay tax in the UK?

Overall many of the various taxes for which a UK resident is liable - with the exception of VAT - are in some way keyed to income taxes. The basic formula for this is to add up your personal income and benefits, subtract your personal allowance, and then pay the appropriate rate on the difference.

For the 2022/23 tax year, all individuals are permitted a personal allowance of £12,570, making income below this level tax-exempt. UK income tax rates are in steps depending on your income. These steps, or bands, also determine other tax rates, such as capital gains.

Approximately 3 2 million people pay taxes in the UK.

UK tax rates are the same for everyone regardless of their residency status. However, residency status does dictate what sources of income must be included in your return. An individual who is a UK resident for tax purposes is taxed on their worldwide income, with allowances to prevent double taxation from certain countries. Non-UK residents, on the other hand, only pay on income earned within the UK.

The UK does not recognize joint filings; each individual must file their own return.

There are several ways to determine if you are a resident of the UK for tax purposes.

Automatic overseas test

The automatic overseas test classifies individuals as a non-resident in the UK if one of the following conditions applies:

You have not been resident in the UK in any of the previous three tax years and will spend less than 46 days in the UK in the relevant tax year.

Your UK residency has been for one or more of the previous three tax years and you will spend less than 16 days in the UK in the relevant tax year.

You are in full-time work abroad in the relevant tax year, spend less than 91 days in that UK in the tax year, and no more than 31 days working in the UK.

Automatic UK residence test

Alternatively, you can determine whether you are classed as a UK resident for the relevant tax year if you meet one of the following three automatic UK residence tests:

If you stay in the UK for at least 183 days during a tax year.

Your main home is in the UK and you have owned, rented, or lived in it for a total of at least 91 days, including 30 days in the tax year under consideration.

You work full-time in the UK for any period of 365 days with no significant break of 31 days or more. At least 274 of the days must be in the tax year under consideration.

Connections to the UK test

If you do not satisfy these conditions, your connections to the UK may help determine your British tax residence status. The more ties you have with the UK, the less time you can spend onshore without becoming a UK resident; the fewer ties you have, the longer you can spend in Britain before UK residency applies.

If you are in the UK for 16-45 days and you have at least four demonstrable ties, you can be considered a UK tax resident. The number of needed ties goes down depending on the length of your stay. These are evaluated as part of a test for sufficient ties, and include the following conditions:

Family: spouse and/or minor children resident in the UK

Accommodation: available to you for 91 or more continuous days (even if you spend just one night there)

Work: working in the UK for at least 40 days in the year

Substantial visits: spending 90 days or more in the UK in either or both of the two previous years

Favored country: spending more days in the UK than any other single country

HMRC has a statutory test to determine your UK residence status on its website.

Who is exempt from paying tax in the UK?

There are some ways you can file for tax exemption in the UK. For example, if you were a tax resident for at least one of the last three tax years and spent 16 or fewer days in the UK during the current tax year, you are not a UK resident. The same is true if you were not a tax resident for any of the last three years and spent fewer than 46 days in the UK. The window of allowable time extends to 91 days if you worked full-time overseas.

Paying income tax in the UK as an employee

Most people who earn income from an employer have UK income taxes and National Insurance contributions (social security) withdrawn automatically from their paychecks.

Your employer uses the PAYE (Pay-as-You-Earn) system to deduct all necessary from your wages before paying you. Those who retire in the UK may also pay UK income tax on their pensions in the UK.

UK tax system for foreigners

Generally speaking, expat residents must pay British tax at the same rates as nationals. All types of remuneration and benefits such as school tuition and cost-of-living allowances are taxable. Under certain conditions, however, the employer's contributions to a foreign pension plan may not be taxable and employee contributions may be deductible.

The UK has double-taxation agreements with more than 130 countries, making it one of the world's largest networks. These include Australia, France, Germany, the Netherlands, Russia, Saudi Arabia, the United Arab Emirates, and the United States. If you're taxed at the source on income from another country, you can usually claim tax relief to get some or all of this tax back. However, how you make your claim depends on a number of factors, including whether you're a UK tax resident or not.

Only 90% of overseas pensions or annuities paid to UK residents, including unauthorized payments, such as early payments and some lump sums, are liable for tax in the UK. This means that pensions paid to UK residents are taxed in the same way whether the scheme is based in the UK or overseas. As a rule, check with your pension provider to find out how you can be taxed.

The UK and Automatic Exchange of Information

The UK is a signatory to the Automatic Exchange of Information (AEOI) mechanism, which allows the sharing of information about financial accounts and investments between tax authorities of different countries. The AEOI affects you if:

you open, or already hold, a UK bank or building society account, and;

if you acquire or hold investments through an insurance or investment company, are a trustee, have an interest in certain types of trusts, or receive certain payments from a charity.

If you opened your account before 1 January 2016, your account provider may contact you to confirm your tax residence status. In particular, you can expect to be contacted if you gave your bank a foreign correspondence address. It is important that you reply to any queries from your bank or building society; otherwise, they might furnish incorrect information to HMRC.

As part of the AEOI agreement, HMRC shares the information with the relevant tax authority in another country where you may be a tax resident. If you're a UK tax resident with an account outside the UK, HMRC receives information from the relevant tax authority.

Taxes for short-term business visitors (STBV)

Anyone working in the UK for less than a year in total, and spending less than 183 days in the country within the relevant tax year, will be treated for tax purposes as a short-term business visitor. Such people are liable for UK tax on their remuneration where the duties were performed in the UK, even if the employer is overseas. Double-taxation treaties may offset any taxes due in such cases.

UK taxes for non-domiciled residents

In some cases, foreigners who live in the UK but have their permanent home ('domicile') outside the country may not have to pay tax in the UK on foreign income. Your domicile is usually the country your father considered his permanent home when you were born. However, this can change if you are now living in another country (such as the UK) and do not intend to return. Such non-domiciled people ( non-doms) are typically not able to live in the UK indefinitely.

Non-doms do not pay UK tax on foreign income or gains if such income is less than £2,000 in the tax year, and you do not bring it into the UK. Amounts over £2,000 must be reported to HMRC via a self-assessment tax return. Special rules apply to students who come to the UK to study.

Income tax rates in the UK

What you owe in UK tax depends on your specific situation. Income tax in the UK is levied at progressive rates; higher rates of income tax apply to higher bands of income. Tax is charged on total income from all earned and investment sources after deductions and allowances are subtracted.

Most individuals are entitled to a personal allowance that they do not need to pay tax on. This is £12,570 in 2022/23. There is no personal tax allowance on incomes over £125,000. The 2022-23 tax rates are the same as those for 2021-22:

2022-23 tax year (6 April 2022 - 5 April 2023)

* assumes individuals are in receipt of the Standard UK Personal Allowance.
** those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

Allowances

UK residents have tax-free allowances for:

Tax-exempt income

There are a number of areas of income that are exempt from taxation in the UK. The following are exempt from UK income tax:

Transport costs associated with relocating an employee and close family to the UK at the beginning and end of UK assignments

Gaming winnings from pool betting, lotteries, or games with prizes

Long service awards (within certain limitations)

Individual savings accounts for UK residents up to £20,000, and income arising from funds invested in such accounts, such as interest or dividends

Certain pensions, such as those paid to war widows and dependents, as well as similar pension payable under the laws of a foreign country

Certain social security and state benefits, including child tax credit, housing benefit, maternity allowance, employment and support allowance, and attendance allowance

You can get an estimate of your tax liability with this calculator, estimates of your allowable tax credits, and other taxes online.

How to file your income tax return in the UK

The UK tax year dates are from 6 April of one calendar year to 5 April of the subsequent year. This means that tax years are notated as, for example, 2021/22 and 2022/23.

You can file your self-assessment return by post or online, although HMRC encourages people to file online. Before you do so, you need a unique tax reference (UTR) number. This is available on previous tax returns and other documents from HMRC, or at the authority's website.

Residents must notify HMRC of any changes to their tax status by 5 October following the relevant tax year-end. The deadlines for submitting UK tax returns are as follows:

31 October (paper returns)

31 January (online returns)

Fines and penalties

A fine of £100 applies on returns filed up to three months after the deadline. Over the following three months, a daily penalty of £10 may be charged. If the failure continues for more than six months after the filing date there is a further fixed penalty of either £300 or 5% of the tax liability (whichever is the greater). Further penalties apply for returns filed 12 months after the deadline - in some cases up to 200% of the tax liability.

If you don't have all the information you need for your UK tax return, you may provide provisional figures in order to meet the deadlines. You should replace any provisional figures with the final ones as soon as you know them.

For more information, read our guide to frequently asked questions about UK taxes for expats.

Social security taxes in the UK

If you're working in the UK, both you and your employer will most likely need to make National Insurance Contributions (NICs). There is no ceiling to such contributions and they are not deductible from compensation for income tax purposes.

Here is a brief outline of NIC regulations from April 2022:

Primary Class 1 NIC is payable by the employee at 13.25% for earnings between the Primary and Upper thresholds (£190 per week and £967 per week respectively) and at 2% thereafter.

Secondary Class 1 NIC is payable by employers at 15.05% on total compensation over the earnings threshold.

Class 1A NIC (at the same rate) is paid by the employer only on most payments/benefits-in-kind, such as rent, car, school fees, and so on. The benefit subject to Class 1A National Insurance is the same as computed for tax purposes.

If you come to work in the UK from the EU, Norway, or Switzerland, you'll only have to pay into one country's social security scheme at a time. This will usually be in the UK. However, you might be eligible for an exemption if you are a temporary worker.

UK taxes on property and wealth

Property taxes in the UK

There are two forms of property tax in the UK. When you buy a property in the UK over a certain threshold you must pay Stamp Duty Land Tax (SDLT). SDLT only applies to residential properties valued more than £125,000, or to non-residential land and properties bought for more than £150,000.

Stamp duty is payable in England and Northern Ireland; Scotland has its own Land and Buildings Transaction Tax and Wales operates a Land Transaction Tax. Each country also operates surcharges for people buying buy-to-let investment properties and second homes.

Like income tax, the SDLT is a stepped-rate tax; you can use an online calculator to see how this tax works. You must send your SDLT return to the HMRC and pay the tax within 30 days of completing the sale. There are certain exemptions that allow lowering your UK property tax, for example, if you buy multiple properties.

The other form of UK property tax is Council Tax. This local municipality tax is stepped or banded just like income tax. Each municipality assesses the properties in their jurisdiction annually and determines applicable taxes based on the assessed value. A number of conditions affect the council tax rate.

UK tax on rental income

Net proceeds from renting property in the UK are income for both residents and non-residents. Special rules apply for renting out a single room, renting out your property for holiday purposes, and if you are an overseas landlord.

Net proceeds are gross rental receipts minus allowable expenses. The UK disallows most capital expenses against rent, including the cost of buying or improving the property, depreciation, and some mortgage interest.

UK dividend tax

If you own shares in a UK company you may get a dividend tax payment. You are not required to pay UK dividend tax on the first £2,000 of dividends you receive in the tax year.

Dividend tax rates in the UK from April 2022 are the following:

Wealth taxes in the UK

Wealth taxes, such as capital gains and inheritance tax, are relatively under-represented in Britain, as compared to France and Spain.

Capital gains tax in the UK

Capital gains tax (CGT) applies on the difference between the sale price and purchase price on a number of different assets. You pay CGT on the gain you receive from these assets, not on the entire sale price. CGT may arise from the sale of a business, shares, an heirloom, or a property.

Chargeable assets include:

You must pay CGT on all UK assets, whether or not you are a resident. However, if you are a resident, you may owe CGT even on your non-UK asset dispositions.

CGT is only payable on your overall gains above your tax-free allowance (the Annual Exempt Amount). The CGT-free allowance for 2022/23 is the same as for 2021/22:

How to calculate Capital Gains Taxes in the UK

CGT is added to your other taxable income. The sum of all your income from various sources determines which tax band you are in for the current tax year:

If your total taxable income is less than £50,000 - that is, you are still in the basic band - your capital gains rate is 10% on most chargeable assets (not including residential property) and 18% on your home.

If your capital gains take you into the next highest band then, you pay 20% on most of your chargeable assets and 28% on your home - but only on a portion of your capital gains that pushes your taxable income into the next band.

There are various rates of capital gains tax in the UK.

Inheritance taxes in the UK

Inheritance tax in the UK is a one-time payment paid on the value of a deceased's estate if above a set threshold, currently £325,000. Any value higher than the threshold is taxed at 40%. For example, your estate is worth £500,000 and your tax-free threshold is £325,000. The Inheritance Tax charged will be 40% of £175,000 (£500,000 minus £325,000). If you pass on your main residence to a direct descendant, they have an additional inheritance tax threshold of £175,000. This makes it easier for direct descendants to inherit family homes.

There are other ways to reduce your UK inheritance tax liability. For instance, if you leave more than 10% of the net value of your estate to charity, the rate lowers to 36%. Furthermore, if you are married or in a civil partnership, your partner can inherit your entire estate without facing a UK inheritance tax bill. Should you wish to pass on your assets before you die, you can gift them to your partner.

Company taxes and VAT rates in the UK

Businesses operating in the UK must pay corporation tax on any profits accrued. For the year 2022/23, the normal rate of corporation tax is 19%. A lower rate of 10% is applied when the profits can be attributed to the exploitation of patents, while specific corporation taxes apply in certain cases.

In general, companies operating in the UK will also need to charge and pay VAT at 20%, although there are some exceptions. VAT returns must be filed every month or every three months, depending on the size of the company.

On the other hand, non-resident companies are subject to UK corporation tax only on profits accrued from and connected to trade through a permanent establishment, or in developing UK land. With effect from April 2020 however, non-resident companies have been liable to UK corporation tax (rather than income tax) on income received from UK property.

Consult Expatica's guide to UK corporate taxes for further information.

Self-employed income tax in the UK

If you're a self-employed owner of a limited company in the UK, you will be liable to pay UK corporation taxes, although what you are taxed on depends on whether you are classified as a resident or non-resident taxpayer in the UK. In general, the same UK corporation tax rates and rules apply to both residents and non-residents; residents pay taxes on their worldwide income while non-residents are only taxed on their UK-based income.

Import and export taxes in the UK

All goods imported from outside the UK are subject to tariffs and customs duties with a few exceptions. You can use an online tool to check the tariff and VAT rates on various imported goods. For further insight, look for a business consultant in our directory.

Car, road, and airport taxes in the UK

If you drive in the UK you will need to pay car and road tax, including when you register your car with the DVLA (Driver and Vehicle Licensing Agency). The amount varies per vehicle type, with car and road tax in the UK based on factors such as the size of the engine, type of fuel used, and CO ² emissions. Consult a table of UK car and road tax rates, where you'll see payment rates for alternative fuel cars (TC59) are £10 lower than for petrol (TC48) and diesel cars (TC49).

You can pay your car and road tax online. It should be noted that electric cars are exempt from certain UK car taxes based on their low-emission output. Britain uses the metric system; read more on UK road rules.

Individuals leaving the UK by air must also pay a duty, which is typically part of the cost of the air ticket.

Tax refunds in the UK

You can be entitled to British tax refunds (rebates) for several reasons, for example, if you are employed and had too much tax taken from your pay, if you stopped working, if you took out a pension or life annuity plan, or if you live in one country and have income in another. Moreover, if you claimed personal expenses on your tax return, you may also receive a tax refund in the UK.

Some P800 tax calculations dictate that you can claim a tax refund online (only once your tax has been calculated, which happens between June and October). Once you submit your UK tax return application, you should receive the money within five to six weeks.

Tax advice in the UK

The materials reviewed in this article are for informational purposes only and should not be taken as tax advice for your individual situation. Therefore, you should always consult your own tax expert with your specific tax issues or questions.

For information and help filing your US tax returns from the UK, contact Taxes for Expats and see our guide to filing US taxes from abroad.

Useful resources

HMRC - website for information on British taxes, social security contributions, and other related questions for the constituent countries of the United Kingdom. The authority also runs a self-assessment helpline.

TaxAid - charity which advises people on low incomes whose problems cannot be resolved with HMRC.

Settlement Scheme - This applies to EEA citizens living in the UK before 1 January 2021.

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British taxes: a guide to the UK tax system

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Learn more about the UK tax system, estimate your income tax, and discover if you'll be classed as a resident or non-resident taxpayer. Though many sources will characterize the UK tax system as complex - it is arguably one of the longest sets of tax codes in the world - from a macro view, the British tax system for most expats is relatively straightforward.

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Explore the tax system of another country of your choice
Singapore

1. Tax policy system:
Summarize different types of tax (taxpayers, taxable objects)
There are 9 types of tax including
- Income tax: individuals and companies
- Property tax: owner of properties
- Estate Duty
- Motor Vehicle Taxes
- Customs and Excise Duties
- Goods & Services Tax (GST) (Also known as VAT)
- Betting Taxes
- Stamp Duty
- Others
Difference from Vietnam - giải thích về những loại thuế khác với VN (taxable object, tax payers - xem nhóm 1+2)
Income tax of Singapore is cheaper than Vietnam
2. Tax administration system
+ Types of tax offices and their main functions

+ difference from Vietnam
3. Post links/ sources of your information
https://www.guidemesingapore.com/business-guides/taxation-and-accounting/introduction-to-taxation/singapore-tax-system-and-tax-rates

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Investors turn to Singapore for establishing their operations for several reasons. The ease of setting up and operating businesses is a prime motivator. Another central determinant is Singapore's tax regime - well-known for its attractive corporate and personal tax rates, tax relief measures, absence of capital gains tax, one-tier tax system, and extensive double tax treaties

Persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Singapore are chargeable to tax on all profits (excluding profits arising from the sale of capital assets) arising in or derived from Singapore and certain foreign-sourced income from such trade, profession or business.The purpose of this guide is to provide a general overview of Singapore's tax system and tax rates. We also have a very useful online tax calculator that you can use to estimate your Singapore taxes and to compare how they stack up against those in your home country.

Current Tax Rates in Singapore

Corporate Tax Rates

(For more details, see Singapore Corporate Tax Guide)

Tax rate on corporate profits for up to 300,000 SGD

Effective tax rate at 8.5%

Tax rate on corporate profits above 300,000 SGD

17%

Tax rate on capital gains accrued by the company

0%

Tax rate on dividend distribution to shareholders

0%

Tax rate on foreign-sourced income not brought into Singapore

0%

Tax rate on foreign-sourced income brought into Singapore

0 - 17% subject to conditions

Personal Tax Rates

(For more details, see Singapore Individual Tax Guide)

Singapore Income Tax System - Key Facts

Singapore follows a territorial basis of taxation. In other words, companies and individuals are taxed mainly on Singapore sourced income. Foreign sourced income (branch profits, dividends, service income, etc.) will be taxed when it is remitted or deemed remitted into Singapore unless the income was already subjected to taxes in a jurisdiction with headline tax rates of at least 15%. Although the concept of locality of the source of income seems simple, in realty its application often can be complex and contentious. No universal rule can apply to every scenario. Whether profits arise in or are derived from Singapore depends on the nature of the profits and of the transactions which give rise to such profits.

Singapore corporate tax rate is capped at 17%. By keeping corporate rates competitive, Singapore continues to attract a good share of foreign investment. Singapore follows a single-tier corporate tax system, where tax paid by a company on its profits is not imputed to the shareholders (i.e. dividends are tax free).

Singapore personal tax rates start at 0% and are capped at 22% (above S$320,000) for residents and a flat rate of 15% to 22% for non-residents.

To increase the resilience of taxes as a source of government revenue, Goods and Services Tax (GST) was introduced in 1994. The current GST rate is 7%. The balanced mix of tax on consumption and income reduces the vulnerability of revenue intake to adverse changes in economic conditions and strengthens the resilience of Singapore's fiscal position.

Interest, royalties, rentals from movable properties, management and technical fees, and director's fees paid to non-residents (individuals or companies) are subject to withholding tax in Singapore.

For personal taxes, the tax year is the normal calendar year i.e. January 1 - December 31. Deadline for filing personal tax return is April 15. For corporate taxes, a company is free to decide on its financial year. Deadline for filing corporate tax return is November 30. Taxes are paid on a preceding year basis.

Singapore has no capital gains tax. Capital loss expenses are correspondingly not allowed as deductions.

Singapore has concluded more than 50 bilateral comprehensive tax treaties to help Singapore companies minimize their tax burden.

Types of Taxes in Singapore

Income Tax - chargeable on income of individuals and companies.

Property Tax - imposed on owners of properties based on the expected rental values of the properties.

Estate Duty - abolished since February 15, 2008.

Motor Vehicle Taxes - taxes, other than import duties, that are imposed on motor vehicles. These taxes are imposed to curb car ownership and road congestion.

Customs and Excise Duties - Singapore is a free port and has relatively few excise and import duties. Excise duties are imposed principally on tobacco, petroleum products and liquors. Also, very few products are subject to import duties. The duties are mainly on motor vehicles, tobacco, liquor and petroleum products.

Goods & Services Tax (GST) is a tax on consumption. The tax is paid when money is spent on goods or services, including imports. This kind of indirect tax is also known as Value Added Tax (VAT) in many other countries.

Betting Taxes are duties on private lottery, betting & sweep-stake.

Stamp Duty is imposed on commercial and legal documents relating to stock & shares and immovable property.

Others - The two main taxes are the foreign worker levy and the airport passenger service charge. The foreign worker levy is imposed to regulate the employment of foreign workers in Singapore.

Singapore Tax Governing Authority

The Income Tax Act of Singapore is the governing statute regarding corporate and individual taxation matters.

The Inland Revenue Authority of Singapore (IRAS), was formed in 1960 and was formerly known as the Inland Revenue Department. It integrated all the key revenue collection agencies into one body, enabling the administration and collection processes to become more streamlined and better managed. IRAS has also made its mark as an efficient tax administrator and a service-friendly tax collector.

IRAS is responsible for collecting income tax, property tax, goods & services tax, estate duty (abolished since 15 Feb, 2008), betting taxes and stamp duties. As the main tax administrator for the Ministry of Finance, IRAS plays a role in tax policy formulation by providing policy inputs, as well as the technical and administrative implications of each policy. IRAS also actively monitors developments in external economic and tax environment to identify areas for policy review and changes. It aims to foster a competitive tax environment that encourages enterprise and growth. The other non-revenue functions performed by IRAS include representing the government in tax treaty negotiations, providing advice on property valuation and drafting of tax legislation.

Brief History of Taxation in Singapore

Early beginnings

Debated since before World War I, income tax was introduced briefly during World War I and II to raise revenue for the war effort. But the tax was unpopular, and with many opposing the need for it, income tax stayed off the agenda.

The end of World War II highlighted the need for new infrastructure and fresh sources of revenue, giving renewed impetus to the introduction of income tax.

In 1947, Income Tax was introduced in Singapore under the British colonial government. In 1948, the Income Tax Act was imposed. The Act was based on the Model Colonial Territories Income Tax Ordinance 1922, which was devised for British colonies at that time. Therefore, Singapore's tax laws share common historical roots with those of Malaysia, Australia, New Zealand and South Africa.

1960s

With Independence in 1965, Singapore promoted a policy of rapid industrialisation and building an export oriented industrial base, to stimulate growth and employment. Hence in the 1960s, labour-intensive industries were encouraged by tax incentives. The Economic Expansion Incentives Act was introduced in 1967. Companies which managed to grow their exports enjoyed as much as a 90% tax exemption on the increased export income. Interest paid on foreign loans granted to a local industrial company was tax-exempt.

1970s

In the 1970s, growth of the service sector was high on the government's agenda. Tax policy played its part in the financial sector with the exemption of interest on Asian dollar bonds from 1973. Shipping was also actively promoted. Income from the operation and charter of Singapore ships drew tax exemptions. Tax measures to support urban redevelopment were also introduced. Different property taxes were also phased out. Tax policies in the 1970s were also influenced by social needs. Contributions to the Central Provident Fund were tax deductible and other tax relief measures were introduced.

1980s

As Singapore became more developed, it became a more expensive place for businesses in the 1980s. Measures to revamp the economy, with the aim of making it more competitive was introduced. Changes to government policies, incentives and taxes were considered. The late 1980s marked a significant shift towards lowering both corporate and individual taxes. In 1987, corporate tax rates were lowered from 40% to 33%.

1990s

This period witnessed major changes in tax policies. There was a shift towards lower direct taxes and the focus was on indirect taxes. The trend towards indirect taxation resulted in the introduction of the Goods and Services Tax (GST) in 1994. It is a tax on domestic consumption and applies to all goods and services supplied in Singapore except for financial services and residential properties. It was in this period that the trend of lowering corporate and individual tax rates accelerated.

2000 and beyond

This has been the phase of innovation and entrepreneurship. A number of measures were, and are being introduced to attract foreign talent and investment. Tax rates were further lowered and currently capped at 17% for companies and 20% for individuals. This period witnessed the introduction of group relief and the one-tier corporate tax system.

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Investors turn to Singapore for establishing their operations for several reasons. The ease of setting up and operating businesses is a prime motivator.

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1. Tax policy system:

Income Tax: Income tax is chargeable on the income of individuals and companies.

Goods & Services Tax (GST): GST is a tax on consumption. The tax is paid when money is spent on goods or services, including imports. (difference from VAT?)

Property Tax: Property tax is imposed on owners of properties based on the expected rental values of the properties.

Stamp Duty: This is imposed on commercial and legal documents relating to stock & shares and immovable property.

Betting Taxes

These are duties on private lottery, betting & sweepstake.

Estate Duty (Removed for deaths occurring on or after 15 Feb 2008)

Estate duty is levied on the value of a deceased's net assets in excess of a threshold amount.

Motor Vehicle Taxes: These are taxes, other than import duties, that are imposed on motor vehicles. These taxes are imposed to curb car ownership and road congestion.

Customs & Excise Duties: Singapore is a free port and has relatively few excise and import duties. Excise duties are imposed principally on tobacco, petroleum products, and liquors. Also, very few products are subject to import duties. The duties are mainly on motor vehicles, tobacco, liquor, and petroleum products.

Casino Tax: The casino tax is a tax levied on the casinos’ gross gaming revenue.

Others: These include the foreign worker levy, annual tonnage tax, water conservation tax, and development charge.

Vietnam and Singapore have income tax (PIT and CIT), goods and services tax (value-added tax), customs & excise duties and property tax.

About differences, Singapore has stamp duty, betting taxes, motor vehicle taxes, casino tax, foreign worker levy, annual tonnage tax, water conservation tax and development charge that Vietnam doesn’t have.

2. Tax administration in Sing: While Vietnam have tax office and custom office to administration tax then tax administration system of Singapore is IRAS (Inland Revenue Authority of Tax). As the main tax administrator for the Ministry of Finance, IRAS plays a role in tax policy formulation by providing policy inputs, as well as the technical and administrative implications of each policy. It aims to foster a competitive tax environment that encourages enterprise and growth. The other non-revenue functions performed by IRAS include representing the government in tax treaty negotiations, providing advice on property valuation and drafting of tax legislation. As IRAS deals both with individuals and businesses, it’s divided into departments accordingly.

3. Post links/ sources of your information

https://www.iras.gov.sg/who-we-are/our-organisation/organisation-structure

https://www.corporateservices.com/singapore/singapore-tax-system/

https://www.guidemesingapore.com/business-guides/taxation-and-accounting/introduction-to-taxation/singapore-tax-system-and-tax-rates