Overview of Goods and Services Tax (GST) GST is similar to Value-added tax (VAT) in other countries and was implemented on 1 April 1994. GST is an indirect tax (at 7% since 1 July 2007) and is applied to the selling price of applicable goods and services, and upon the importation of goods (as determined under the…
Read more
Overview of Singapore Tax Structure Government collect taxes to develop Singapore into a better, robust and vibrant economy. Inland Revenue Authority of Singapore, commonly known as IRAS, administers the corporate regime in Singapore. IRAS levies income tax on income earned by companies conducting business in Singapore. Compliance with Income Tax Act is a complex matter, and all Singapore…
Read more
What is foreign-sourced income? Foreign sourced income refers to foreign income from outside Singapore. Generally, such foreign-sourced income is taxable when the company received it in Singapore. Tax exemption is only applicable to tax resident companies and for foreign-source income that is not related to a business or trade that takes place in Singapore. For the foreign-source…
Read more
The Singapore Government offers tax reliefs and rebates to pursue various economic and social objectives actively. Individuals, who are Singapore tax residents, enjoy these concessions as long as they meet certain qualifying criteria. Some tax reliefs are designed to promote parenthood, family development, and skill upgrading through approved professional courses. Besides that, Singapore prepares its…
Read more
Understand Taxable Income for Singapore Business For income tax purposes in Singapore, the taxable income may relate to the following: – Profits or gains derived from business or trade; – Income derived from investments such as rental, interest and dividends; – Property related profits or gains such as premiums and royalties; –Any other type of…
Read more
From the tax scheme and legal liability perspective, business owners should consider converting the sole proprietorship business into a Private Limited company in Singapore. Below are the factors to consider: 1. Tax Exemptions and Tax Rebates for the Company Private Limited companies enjoy the headline tax rate of 17%, tax exemption schemes, tax incentives and corporate tax…
Read more
What determines the tax residency of an individual? An individual’s tax residency status will influence their income tax rates. You are deemed to be a tax resident for a specific Year of Assessment (YA) in the following situations: 1) A Singapore Permanent Resident (SPR) or Singapore Citizen (SC) who is a resident in Singapore with…
Read more
Keep in mind, Accounting Solutions Singapore when it comes to all your Singapore business needs. From registration to all the important tasks that help a business thrive. Our Singapore Accounting Back Office Specialists cover accounting, payroll, taxation, and company secretary services. These services are all critical areas of business that we can help your business meet…
Read more
Tax exemption schemes in Singapore In the Year of Assessment (YA) 2005, the Government introduced the Start-Up Tax Exemption (“SUTE”) scheme to support entrepreneurship and to foster the growth of local enterprises. In the Budget 2018, the Government revised the SUTE to strengthen other support for businesses to build capabilities. For companies that qualify under…
Read more
1. Where are Directors’ Fees sourced in Singapore? In general, the director’s fees are likely to be sourced in the country the company is based. The reason is that the director’s actions in controlling and determining business activities to generate the company’s revenue have taken place in that specific country. 2. Should BOD approve the Directors’…
Read more
Individuals receiving, deriving or earning income in Singapore is required to pay income tax annually unless exempted under the Singapore Income Tax Act. 1. Employed Individuals Individuals working and receiving payment (may refer to benefits-in-kind or cash) in any form of employment or service rendered is required to pay income tax in Singapore. 2. Individuals Conducting…
Read more
There are many businesses that manage tax, payroll, accounting, human resources and all other finance related functions in-house. Staffing these services can become very complicated and not mention, expensive. Quite often businesses keep these functions in-house without realising how intricate these tasks are becoming over time. Some of the most frequently outsourced business functions are…
Read more
Payroll is one of the most intricate areas in the world of business. From medium size business to the very large corporations, outsourcing payroll is now becoming common practice in Singapore. Outsourcing payroll usually makes sense strategically due to the complexity and dynamic constitution of payroll requirements. Since payroll is often imbued with human error…
Read more
Save cost and free up valuable time Outsourcing accounting function is one trending topic in the business sector of prosperous countries like Singapore. A substantial part of the company’s total functions is handed to the outsourced accounting services for some benefits. Though they are considered as back-office services, they still induce impact to the company when they…
Read more
Businesses in Singapore similar to yours might decide to take care of their own payroll functions in-house as it appears to be more economical to do so initially. Often this is the case for smaller companies as they tend to have a minimal workforce and therefore, less complexity in their payroll activities. They eventually discover…
Read more
When in business, it is of vital importance to have an eye on how your money is going out to something. Let’s have a look at how the concept works. While starting a new business, like a company, small or new, the whole concept of its working does overwhelm a person from time to…
Read more
