Nature of sole proprietorships
How are sole proprietorships in Singapore taxed?
Because sole proprietorships do not qualify as a legal entity for tax reasons, they are not eligible for Singapore’s low tax rates or tax benefits. It is worth noting that the chargeable income of sole proprietorships is taxed at a personal rate of 0% to 22% for the owners.
Meanwhile, the effective tax rate for new businesses and businesses with chargeable incomes of less than S$100,000 and less than S$10,000 is only 4.25%. The maximum rate of corporation taxation in Singapore is 17%.