1. Introduction to Singapore Tax Authority
The Inland Revenue Authority of Singapore (IRAS) is a statutory board under the Ministry of Finance (MOF) and acts as an agent of the Government in providing services to administer, assess, collect and enforce payment of taxes. The IRAS also provides inputs to MOF on policy formulation and advises the Government and represents Singapore internationally on matters relationg to taxation.
The Comptroller of Income Tax (CIT) who heads the IRAS is responsible to oversee the administration and management of IRAS.
2. Function and Purpose of Taxation
A. The overall Function of taxation in a modern economy:
Taxes are used to develop Singapore into a stronger community, a better environment and a more vibrant economy, a place that Singaporeans can be proud to call home. Taxes go towards the funding of government expenditure.
The Fundamental principle of Singapore's tax policy is to keep tax rates competitive. Competitive corporate tax rate will help Singapore to continue to attract a good share of foreign investment while competitive individual tax rates will encourage our people to work hard. It will also make risk-taking worthwhile and encourage entrepreneurship.
B. The Purpose of Taxation in a modern economy:
There are 2 major main objectives of tax policy in Singapore and they are:
i) Revenue Raising
This is the traditional aim of tax policy. Tax revenue is a substantial source of funding for government operations.
ii) Promotion of Economic and Social Goals
Tax has been used to influence behaviour towards desirable social and economic goals.
Social goals: To encourage the workforce to upgrade their skills and learning to meet different needs of industries. e.g: Course fee relief
Economic goals: To encourge mechanisation and automation e.g: Capital allowances
The Inland Revenue Authority of Singapore (IRAS) is a statutory board under the Ministry of Finance (MOF) and acts as an agent of the Government in providing services to administer, assess, collect and enforce payment of taxes. The IRAS also provides inputs to MOF on policy formulation and advises the Government and represents Singapore internationally on matters relationg to taxation.
The Comptroller of Income Tax (CIT) who heads the IRAS is responsible to oversee the administration and management of IRAS.
2. Function and Purpose of Taxation
A. The overall Function of taxation in a modern economy:
Taxes are used to develop Singapore into a stronger community, a better environment and a more vibrant economy, a place that Singaporeans can be proud to call home. Taxes go towards the funding of government expenditure.
The Fundamental principle of Singapore's tax policy is to keep tax rates competitive. Competitive corporate tax rate will help Singapore to continue to attract a good share of foreign investment while competitive individual tax rates will encourage our people to work hard. It will also make risk-taking worthwhile and encourage entrepreneurship.
B. The Purpose of Taxation in a modern economy:
There are 2 major main objectives of tax policy in Singapore and they are:
i) Revenue Raising
This is the traditional aim of tax policy. Tax revenue is a substantial source of funding for government operations.
Tax has been used to influence behaviour towards desirable social and economic goals.
Social goals: To encourage the workforce to upgrade their skills and learning to meet different needs of industries. e.g: Course fee relief
Economic goals: To encourge mechanisation and automation e.g: Capital allowances
