Conditions for Singapore GST Registration You Need to Know

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GST refers to the tax levied on the importation of goods and is collected by a country’s customs authority. In some countries, GST is referred to as VAT which stands for value-added tax. The following is a discussion of the various registration conditions.

For Compulsory Registration

How liable you are for GST registration in Singapore is solely dependent on the value of your taxable turnover. It basically means the value of goods and services that the GST terms as taxable for you. Registration is a must under the following conditions.

A Retrospective View

In case your taxable turnover is $1 million or more at the end of the calendar quarter. You have to monitor your taxable turnover at the end of every twelve months to determine if it exceeds one million dollars and if so go ahead and register for GST. A GST registration calculator can help you greatly in monitoring your registration liability.

A Prospective View

In case that your taxable turnover is expected to exceed one million dollars, you need to have all the right documentation to support your forecast value. The documents include signed contracts or agreements, quotations accepted by customers, confirmed purchase orders received by customers, invoices of customers with fixed monthly charges and income statements showing that the taxable turnover tax of the past 12 months is close to $1 million and is still increasing. However, you are not entitled to make GST registration if your forecast for the next 12 months shows that your taxable turnover will not exceed one million dollars. You could make an assessment based on the market conditions or business targets.

Exceptions for GST registration

You are not required by the law to do GST registration in the following situations when your taxable turnover is mainly from zero-rated supplies. You can also choose to apply for an exemption from the registration. It should be noted that you are liable for GST registration under the retrospective view but not under the perspective view but only if the following conditions have been met. If you are sure that your taxable turnover will not exceed one million dollars for the next 12 months, if the taxable turnover is projected to be lower due to unavoidable circumstances such as large-scale downsizing of business and if you have all the right documents to back up your claims.

If you are not liable for GST registration you may also choose voluntarily to register, but only after you have considered the issue very carefully.

Notification Period and the Right Time for Registration

It is a requirement for you to make GST registration in Singapore within 30 days from the time that you become liable to make a registration. The effective day for registration is highlighted below.

For a retrospective view, you will be liable to make a registration on the first day of the third month following the end of the calendar quarter. On the other hand, for a perspective view, you will be liable for a registration on the 31st day from the forecast day. Late registration has very serious consequences including backdating and heavy fines.

Surprising Benefits of Incorporating Your Company in Singapore

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When you decide to register your company in Singapore, you are implying that you are ready to make this a serious business. Getting your company incorporated here complete with the best corporate secretarial services Singapore is already enough to attract the attention of potential investors because they know how serious you are about making your company succeed. Read more

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

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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.

Media Advisory: Public Alert on Scam IRAS Email

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IRAS would like to alert the public that a scam email titled “Inland Revenue Authority of Singapore-Refund-Online-Confirmation” has been circulating. The email carries a message that the recipients are eligible to receive a tax refund and that they are to click on the link provided in the email to download and fill out the tax refund form.

Members of the public should not respond to this email or click on the link from the email. They are advised to delete it as soon as they have seen it and refrain from opening it. They should also scan their computers/mobile devices with anti-virus programmes.

This is a screenshot of the scam email for reference:

To protect themselves from scams, phishing and other online frauds, members of the public are advised to refer to IRAS’s advisory on scam & fraudulent activities.

Sourced:  Published by IRAS website on 12 Sep 2017

Singapore online grocery to triple by 2020

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IGD forecasts that Singapore’s online grocery market will triple in growth over the next three years, from US$91 million to US$350 million by 2020.


At the end of 2016, IGD valued online grocery to have a 1.2% share of the Singaporean grocery market. Reflecting rapidly changing shopper habits in the region and increased investment in the online channel from retailers and suppliers, IGD is further forecasting online to take a 4% share of Singapore’s grocery market by 2020, with a compound annual growth rate of 39%.

“Shopper habits are changing rapidly in South East Asia and in a compact city such as Singapore, with its relatively affluent population, big expat community and high penetration of internet and smartphone usage, there are huge opportunities for online grocery to meet these evolving needs. To make the most of this opportunity, retailers and suppliers must work together to ensure they really understand online shoppers and can tailor experiences and products to suit their personal preferences,” said Nick Miles, IGD’s Head of Asia-Pacific.

He noted that retailers are looking to improve the overall online experience, by getting the basics of search functions, favorites, images and information right for shoppers. At the same time, they’ll be aiming to make delivery options as convenient as possible, whether that’s through shorter timespan delivery slots or greater choice of click and collect points throughout the region.



According to IGD 80% of shoppers cite convenience as their number-one reason for shopping online. He expects Singaporean shoppers to have very similar preference when heading online for their groceries.

“We also expect online grocery retailers in the region to encourage shopper loyalty through personalized offers and products, plus subscription models and delivery saver passes. On top of that, shoppers in the region are increasingly connected via mobile, so ensuring a seamless shopping experience no matter what device they are using will be critical. Coupled with an increased focus on using innovations such as voice-activated technology, virtual reality and robotics, we predict huge opportunities for those retailers and suppliers who really invest in making the online grocery channel work for them in Singapore,” he added.

Sourced:  Published by Questex Asia on 28 Aug 2017

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