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Singapore's Free Trade Zones (FTZs) are administered by Singapore Customs under the Free Trade Zones Act and cover six designated zone locations, including the Jurong Port FTZ, Sembawang Wharves FTZ, Pasir Panjang Terminal, Tanjong Pagar Terminal, Brani Terminal, and the Changi Airport Cargo Terminals FTZ. Goods can be stored, consolidated, repackaged, relabelled, and transshipped within Singapore FTZs without the payment of Singapore import duties or GST, as long as the goods remain within the FTZ and are not released into free circulation in Singapore. This makes Singapore FTZs highly attractive for global trading companies using Singapore as a transshipment and distribution hub for Asia Pacific trade flows.
Singapore companies operating through FTZs use the structures for bonded warehousing, transshipment cargo handling, and distribution of goods across Asia and beyond, leveraging Singapore's world-class port and airport infrastructure, extensive free trade agreement network, and strong legal and financial services sector. Singapore applies a standard corporate income tax rate of 17% on companies' chargeable income, but significant partial tax exemptions are available for qualifying new startup companies in their first three years. The FTZ regime provides duty and GST suspension on goods within the zone rather than a separate lower tax rate on corporate profits.
Six FTZ Locations Covering Sea and Air
Singapore's six FTZ locations span the country's major sea port terminals and Changi Airport cargo facilities, covering all major modes of international trade and giving companies flexible access to Singapore's world-class logistics infrastructure.
Duty and GST Suspension Within FTZ
Goods stored, consolidated, repackaged, and transshipped within Singapore FTZs are not subject to import duty or GST while they remain in the zone, significantly reducing the cost of using Singapore as an Asia Pacific transshipment hub.
Asia Pacific Distribution Hub
Singapore's central location, world-class port (2nd busiest globally by container throughput), Changi Airport, and extensive FTA network make it the premier Asia Pacific distribution and transshipment hub for global trading companies.
Singapore Legal and Financial Infrastructure
Singapore provides a rule of law environment ranked among the world's strongest, an internationally respected common law legal system, a deep financial services sector, and extensive double tax treaty coverage, supporting sophisticated global trading structures.
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