Singapore’s tax system is based on the principals of source and remittance. Only profits that are derived from or arise in Singapore, or any foreign-sourced profits remitted back to Singapore are subject to tax in Singapore. Capital gains are not subject to tax. The current rate of Singapore Income Tax (SIT) is 17% – one of the lowest rates in the region. All Singapore resident companies are eligible for partial tax exemption of 75% on the first S$10,000 and 50% on the next $290,000, which effectively provides an 8.5% tax rate on taxable income up to S$300,000 per annum. Further tax concessions are also available for qualifying companies under various economic incentive programmes in the manufacturing, service, trade, investments and finance sectors. Dividend income from other Singapore companies is not subject to tax. Foreign-sourced dividends remitted back to Singapore are generally taxable but they can be completely exempted from tax if: the country from which the dividend was paid has a headline tax rate of 15% or higher; and the dividend has suffered taxation, either because it is paid out of taxed profits or has suffered withholding tax. Singapore has entered into over 80 comprehensive agreements for the avoidance of double taxation (DTAs).