If there’s one thing that makes Singapore the perfect place to do business today is its friendly tax rates. In fact, this is one of the reasons why it was named the world’s best business location, next to London. The Lion City boasts low corporate income tax, well-structured tax incentives, and transparent tax policies that make it the best environment for any startup or multinational company to operate a business. If you’re one of those companies interested to take advantage of this opportunity, it will serve you well to have on your side the services of a company incorporation firm to assist in your taxation requirements.
While it is fairly simple to understand Singapore’s taxation requirements, the process and timing should be adhered to with strict compliance. Hiring a Singapore company formation services firm to undertake your company’s taxation requirements is your best bet towards easy and efficient compliance.
Of course, you’re wondering how a professional services provider involved in company incorporation can help handle your taxation needs. Before we get into that, let’s discuss the requirements that you should expect when filing for income taxes in Singapore.
Requirements When Filing For Corporate Taxes In Singapore
Businesses and companies in Singapore are required to file for income tax, Goods and Services tax (GST), customs and excise duties, property tax, and stamp duty. They aren’t required to file for capital gains tax nor inheritance tax.
Aside from low corporate taxes that are being imposed, Goods and Services taxes are relatively low in Singapore, which is pegged at 7%. This is one of the lowest tax rates worldwide.
On top of the low tax rates, Singapore also implements a single-tier corporate income taxation system. This ensures that businesses and companies are shielded from double taxation when the personal income of corporate shareholders is concerned.
Important documents that need to be filed for corporate tax purposes include the following:
- Annual Tax Returns – These are composed of personal and corporate tax documents as well as statutory tax filings that should be submitted to the Inland Revenue Authority of Singapore (IRAS) by November 30.
- Annual Returns – These contain pertinent information about your company, which includes your company registration number, shareholders’ information, registered activities, and financial statements. This information should be filed with the Accounting and Corporate Regulatory Authority (ACRA).
- Financial Accounts – These should include the Balance Sheet, Statement of Changes in Equity, Cash Flow Statement, Notes to Accounts, and Income Statement. These financial statements should adhere to the Financial Reporting Standards of Singapore as mandated by the Accounting Standards Council.
- Estimated Chargeable Income – Also called ECI, this is the income of the company that is taxable after deductions on tax-allowable expenses have been implemented.
- Annual General Meeting – This is composed of the minutes of the annual general meeting that every company should hold to discuss its financial status.
These documents are crucial to ensure that every company legally complies with Singapore’s taxation requirements. Proper preparation of these documents is important, that’s why businesses and companies are encouraged to hire a corporate services firm in Singapore to ensure accuracy and efficiency when preparing and filing these requirements.
How a Singapore company incorporation firm can help ensure efficient filing of corporate taxes
Singapore incorporation services companies are primarily involved in helping new businesses form their companies in the Lion City. These local firms assist in business registration as well as in filing of pertinent documents to comply with the legal requirements of incorporating a company.
These professional services providers, however, also offer business financial services that aim to meet the business needs of companies. Amongst the services they offer is the preparation and filing of taxation documents.
On top of ensuring efficiency when preparing and auditing your financial accounts, you can expect the following advantages when you outsource your taxation requirements to a reputable company incorporation services firm in Singapore.
- Timely compliance with tax filings
The Singaporean government is very strict when it comes to on-time filing of taxation documents. Hiring a company incorporation firm to handle your taxation documents ensures you meet all your tax obligations and file the necessary documents timely and in compliance with the rules and regulations. This lets you avoid the penalties that can be incurred due to late submission or non-compliance.
- You do away with training people
It is a common practice to handle taxation obligations in house, with qualified accounting people overseeing the task. However, outsourcing this function to a Singapore company formation services firm is more cost-efficient as you don’t have to train your staff in the ins and outs of tax filings in Singapore as well as eliminates errors and omissions during preparation and audit of your financial accounts.
- You save on resources
When you do away with training your in-house accounting people, you also do away with spending on making them well-equipped. Company incorporation firms boast taxation specialists who have years of experience in efficiently handling taxation requirements of various companies. Aside from that, they are updated with the latest rules and regulations on tax filings, so you don’t have to worry about late submissions of important tax documents.
- You benefit from a full range of taxation services
Hiring a company incorporation services firm in Singapore to handle your taxation needs allows you to take advantage of its comprehensive list of taxation services. Some of the Corporate Services Singapore, for instance, offers a full suite of taxation services that includes, amongst others, corporate tax compliance and return preparation, partnership and personal tax filing, withholding tax services, expatriate tax services, and GST filing and compliance.
On top of these services, a local firm can also represent you during taxation disputes, negotiate on your behalf for tax incentives, and help you implement the ideal tax planning strategies for your organisation so you can fully optimise your use of these tax incentives and exemptions that correspond to your business structure.
Engaging a an incorporation services firm is highly recommended if you’re looking to streamline your business operations. With a professional services provider handling your taxation requirements, you can focus your time and resources more on improving your business performance towards achieving your company’s goals and targets.