Under the Income Tax Act (Cap. 134), tax will be imposed on the income of any person accruing in or derived from Singapore or received in Singapore from outside Singapore.

Income tax is levied on the income of companies based on prevailing corporate rate whilst income tax is levied on the income of individuals based on a progressive scale of rates.

A goods and services tax (GST) (similar to value added tax found in other jurisdictions) at the prevailing rate of 7% is charged on domestic consumption. GST is essentially a multi-stage tax which is passed on to the end consumer.