Month: February 2018

Six Things You Need to Know About Corporate Tax Filing In Singapore

by acefinancial acefinancial No Comments

Singapore is a strategically placed country in the Asian continent. This makes it an ideal place for businesses seeking to invest in Asia. Most companies are attracted to do business in this area because of the city-state’s quasi-territorial tax system. Hence, do not expect any withholding of tax on dividends or capital gaining of tax in this country.

The country promotes business by having no substantial constraints on foreign exchange transactions and the capital movements with flexible tax return Singapore. The SGD (Singapore Dollars) can furthermore be loaned to people and non-financial institutions, unlike the restrictions that are put in place to restrict lending to non-resident financial institutions.

Corporate Tax Rates

The corporate income tax is 17%, but it is reached after assessment of the chargeable income of the company. This can be termed to be among the lowest taxes in the world and can be even relatively lower if the company can take advantage government schemes, incentives, and other subsidies given.

Corporate Tax Residency

Furthermore, the Inland Revenue Authority of Singapore is the body that determines the corporate tax residency of the companies in the country. Control and Management is the process of making decisions on strategic matters like the policy and strategy of the company. The IRAS uses this Control and Management decision before giving any organization an exemption regarding its foreign-sourced amenity revenue.

Determining Fiscal Year

Singapore advises all companies to keep their financial end year within 365 days. This is the only way they can enjoy zero tax for the new companies that are just beginning their activities. The companies need to determine their FYE and submit them.

Annual Filling Requirements

The Accounting and Corporate Regulatory Authority requires annual returns from every company that is in Singapore. They have also provided a date, November 30th, which should not be exceeded by any company in providing tax returns. Companies are also allowed to carry forward the unabsorbed trade losses and allowances to the following years. This is to counterbalance the future years until when the loss will be totally exploited.

Form C-S

This is an important form that companies must fill in their returns regardless of whether they are making profits or losses. There is, however, some conditions those companies should meet before filling this form. These are the conditions that should be met by these companies before filling in the form — have an annual revenue equating 5 million dollars or below and lastly get income taxable at the ongoing rate of 17% per annum.

The Process of Taxable Income Calculation in Singapore

Knowing this process is crucial for any company as there are various conditions involved. The conditions include:

Expenses are considered as revenue and not as assets in some countries

The Income Tax Act of the state does not prohibit expenses from being deducted from taxable income calculation

Expenses should be sustained especially in income production of the company

You cannot assume expenses to be a contingent liability

If you want to know more about tax return Singapore, you can consult a reputable tax services company like Ace Financial Accounting Pte Ltd.

7 Reasons Why Register Company in Singapore

by acefinancial acefinancial No Comments

7 Reasons Why Register Company in Singapore

Over the years Singapore has provided a proper and conducive environment for doing business both for international and local businesses. The business laws are in place, there is adequate workforce, and the market is ever growing. Opening business in Singapore is a plus with high chances of success.

We are addressing reasons why register business Singapore is the best choice you can ever make.

Here are seven reasons:

Number one Place for Doing Business

Prominent reports like that of the World Bank group classify Singapore at the top two under the category of “Ease of doing business.” This means that the business environment of Singapore is the most conducive.

Tax rates are Affordable

The tax rates affect business. In Singapore, these taxes are comparably low. The corporate tax is at 17%, and the Goods and Service tax is at 7%. These taxes rank Singapore among the top 10 in the world by the economic forum report. Shareholders are not taxed after the tax is deducted at the corporate level.

Availability of Telecom and Internet Facilities

The Internet is a necessity for companies that require international transactions. Not just that. It is also paramount that communication is in place for access to material, to keep in touch with clients and so on.
Singapore provides very high speeds of the internet all over the country with telecommunication infrastructure. There are internet companies that have launched up to 2Gbits high-speed fiber internet connections.

Skilled Labor

For any profitable venture, you need to get a workforce that is efficient, skilled and affordable. Singapore is the right place to get that. More than 54% of Singapore workers are highly skilled based on research by World Economic Forum. In the entire Asian continent, the workforce in Singapore stands out as the best and most motivated.

Affordable and wide transportation network

Singapore has a great internal road network that allows movement of vehicles to the interior parts of the country. Besides, Singapore has the best airport in the world and the busiest seaport. The airport has direct connections to the developed countries and developing economies like America, Europe, the Middle East, China, India and Southeast Asia.

Flexible Immigration Policies

If you are planning to move permanently to the place you want to build your business, then Singapore is the best option. For value adding individuals, the government has made a provision for work permits that can be accessed easily. In addition to that, the procedure of processing Permanent Residence (PR) is really flexible.

Incorporation Process is Easy

To successfully register business Singapore, you must contact a professional firm from Singapore to register the company. Foreigners cannot directly register their companies. This can take three days in three steps according to the provisions of the law, and this will cost you less if you compare this with other countries.

Now you know Singapore is very open for business opportunity and not just that it is a vibrant economy that is ever evolving at the same time.