Tax incentives and schemes available
As a robust and vibrant legal hub that congregates legal service providers from around the world, Singapore offers attractive corporate tax rates in addition to generous tax exemptions and industry-specific tax incentives for law practices, so as to enhance their economic competitiveness in today’s global environment.
This section highlights available tax incentive schemes and other capability building incentives applicable to law practices and arbitrators in Singapore.
1.1 Development and Expansion Incentive for International Legal Services (DEI Legal)
The DEI Legal allows law practices awarded the incentive, a 10% concessionary tax rate for a period not exceeding 5 years on their qualifying income derived from the provision of international legal services (as defined under section 21(3) of the Goods and Services Tax Act) in Singapore in excess of a base income.
The incentive is only open to law practices structured as companies and is available for applications up to 31 March 2015.
For more information and application forms for this incentive, please contact the Economic Development Board (EDB) at clientservices@edb.gov.sg.
1.2 International Arbitration Tax Incentive (IArb)
The IArb Tax Incentive allows law practices that qualify, a 50% tax exemption on their qualifying income exceeding a base amount, derived from income arising from international arbitration cases which culminated or would have culminated in substantive hearings held in Singapore within the incentive period.
This incentive is open to all law practices structured as companies and partnerships and is available for applications up to 30 June 2017.
For more information and application forms for this incentive, please contact the Economic Development Board (EDB) at clientservices@edb.gov.sg.
1.3 Withholding Tax Exemption for Non-Resident Arbitrators
This tax exemption is applicable to all non-resident arbitrators who are appointed for any arbitration proceedings governed by the Arbitration Act or the International Arbitration Act, or would have been governed by either of those Acts had the venue of arbitration been in Singapore.
For more details, please refer to the IRAS website.
1.4 Work Pass Exemption for Arbitration and Mediation Services
As of 1 February 2008, non-residents no longer need to apply for a work pass to carry out arbitration and mediation services in Singapore. Arbitration and mediation work can be performed whilst holding a Short Term Visit Pass (which will be granted on entry at the immigration checkpoint), subject to a maximum of 60 days.
Once in Singapore, the Ministry of Manpower (MOM) will need to be notified online before such activities are carried out. To file an e-notification with MOM, please go to this website.
For more details, please refer to MOM’s website.
1.5 Other incentives and schemes
For information on other available incentives and schemes that law practices can consider tapping on, please refer to the following websites:
a. Economic Development Board:
http://www.edb.gov.sg/content/edb/en/why-singapore/ready-to-invest/incentives-for-businesses.html
b. SPRING:
http://www.spring.gov.sg/Resources/Documents/Guidebook_Govt_Asst_Prog.pdf
c. International Enterprise Singapore: