Ultimate Guide to Singapore Customs Tax

What are the Singapore Customs Taxes

There are two main types of customs tax in Singapore: Goods and Services Tax (GST) and duties.

GST is a tax on the supply of goods and services in Singapore and is levied on all goods imported into Singapore. The current GST rate is 8%. However, there is a GST import relief threshold of S$400. This means that GST is not payable on goods imported into Singapore valued at S$400 or less.

Duties are taxes levied on goods imported into Singapore. The rate of duty varies depending on the type of goods being imported. For example, the duty on motor vehicles is 20%, while the duty on cigarettes is 55%.

In addition to GST and duties, many other fees may be payable when importing goods into Singapore. These fees include:

  • Goods and Services Tax (GST) on the duty: GST is also payable on the duty itself. This is calculated at the rate of 8%.
  • Processing fees: There is a processing fee of S$9.06 for each Customs import permit application.
  • Messaging fees: There is a fee of S$0.20 for each Certificate of Origin application.

For more information on customs fees in Singapore, please visit the Singapore Customs and Excise Department website.

Here are some additional points to note:

  • The customs value of goods is the transaction value plus any costs associated with the importation of the goods, such as freight, insurance, and packing.
  • The duty-free allowance for travellers arriving in Singapore is S$300.
  • Certain goods are prohibited from being imported into Singapore, such as firearms, drugs, and explosives.

What is the Singapore Customs Tax on Low-Value Goods

As of 2023, the Goods and Services Tax (GST) rate for low-value goods imported into Singapore is 8%. If you import goods valued at S$400 or less into Singapore, you must pay GST on the entire import value.

However, if you purchase goods from a GST-registered overseas supplier and the total value exceeds S$400, GST will be payable at the point of importation.

Please note that there are some exceptions to these rules. For example, GST is not payable on certain goods, such as dutiable goods imported for personal use and goods imported under a special permit.

For more information on GST on low-value goods imported into Singapore, please visit the Inland Revenue Authority of Singapore (IRAS) website.

How to Pay Singapore Customs Taxes

Companies can pay customs taxes in Singapore through various methods, including:

  1. Inter-Bank GIRO (IBG): Companies can register an IBG account with Singapore Customs to pay customs taxes directly from their bank account. This is a convenient and secure method of payment.

  2. Declaring Agent: Companies can appoint a declaring agent to handle their customs clearance and tax payment on their behalf. Declaring agents are licensed professionals who have expertise in customs regulations and procedures.

  3. Credit Card, Mobile Wallets, NETS, and Cashcard: Companies can make customs tax payments using major credit cards (Mastercard, Visa, and American Express), mobile wallets, NETS, and Cashcard at the Singapore Customs Tax Payment Office.

  4. Visa, Mastercard, or American Express on the Customs@SG Web Application: Companies can make customs tax payments online using Visa, Mastercard, or American Express through the Customs@SG Web Application.

A company’s specific payment method will depend on its preferences and business requirements. IBG and declaring agents offer more control and flexibility, while credit card and online payments are convenient and straightforward for smaller transactions.

Companies must ensure that all customs taxes are paid accurately and on time, regardless of the chosen payment method, to avoid penalties and potential legal consequences. It is advisable to consult with a customs broker or tax advisor for guidance on specific customs tax regulations and payment procedures.