Estate Planning

Tax Compliance

As a business owner, you should be on a constant lookout for ways to reduce your tax liability. Review your tax situation with us - we will advise you on the latest changes in tax laws and alert you to tax deductions or incentives that you may not be aware of.

Tax planning is a year-long activity. Understand what deductions are available to you and keep proper records to support them. This way, you will be able to reap tax savings and use them to successfully operate and grow your business.

Our corporate tax services include:

  • Preparation of the tax computation - calculate the tax liability of company or individual.
  • Filing of Form C/Form C-S for company, and filing of Form B/ Form P for business.
  • Submit the tax returns to IRAS (Inland Revenue Authority of Singapore).
  • Assist your company to verify the Notice of Assessment upon receipt of the Notice of Assessment (issued by the Comptroller of Income Tax).
  • Submission of Estimated Chargeable Income (“ECI”) within 3 months from financial year end.

GST is a tax charged on the supply of goods and services made in Singapore and on the import of goods into Singapore. The current standard rate is 7%.

Your business must be registered to collect GST if your annual turnover exceeds or is likely to exceed S$1 million from the sale of taxable goods and services. You can apply for exemption from GST registration if most of your goods or services are exported or supplied internationally (“zero-rated supplies”).

You may also apply to the comptroller of GST to collect GST voluntarily. Approval for voluntary registration is at the discretion of the comptroller. Once the approval is given, you must remain registered for at least 2 years.

If you are a GST registered trader, it is the director’s responsibility to comply with all the obligations of a GST-registered company, and the related administrative and book-keeping costs that may incur to comply with the GST Act. GST submission has to be submitted to IRAS (Inland Revenue Authority of Singapore) on a quarterly basis. As such, you will incur quarterly book-keeping and GST submission cost.

The Local Account provides both GST Registration Service and GST Book-keeping/Computation and Submission Service. We advise you on your optimal GST filing cycle, and will perform necessary quarterly GST filing as per statutory requirement.

If the GST returns is not submitted by due date (i.e. 1 month after the end of the prescribed accounting period), a penalty of $200 for each month that you continue not to submit the return will be imposed, up to a sum of $10,000. We ensures that you will have peace of mind to know that you will not miss your deadlines on filing your GST returns.

Non-Resident Companies

A Singapore business must withhold tax when certain types of payments (e.g. interest, royalty, services etc.) are made to non-resident companies. The e-filing of withholding tax and payment are due on 15th of the second month from the date of payment to the non-resident. Late penalty fees will be imposed when payment is not received by the due date.

Nature of Income

Tax Rate

Interest, commission, fee or other payment in connection with any loan or indebtedness

15%

Royalty or other lump sum payments for the use of moveable properties

10%

Payment for the use of or the right to use scientific, technical, industrial or commercial knowledge or information

10%

Rent or other payments for the use of moveable properties

15%

Technical assistance and service fees

17%

Management fees

17%

Proceeds from sale of any real property by a non-resident property trader

15%

Distribution of taxable income made by REIT to unitholder who is a non-resident (other than an individual)

10%

 

Non-Resident Professionals

The non-resident professional's income attributable to services rendered in Singapore is subject to withholding tax at:

      1). 15% of the gross income/fees payable to the non-resident professional; or

      2). 22% of net income (20% for period of engagement prior to 1 Jan 2016) if the non-resident professional has elected to be taxed on net income.

 

Non-Resident Employees

Employer must file Form IR21 at least one month before cessation of employment, and withhold all monies due to employee until tax clearance is given or expiry of 30 days after IRAS has been notified, whichever the earlier.

      1). Employment income exempt for short term employment of 60 days or less in a calendar year.

      2). Employment income taxed at non-resident rate of 15% or resident rate, whichever that gives rise to higher tax for employment exercised for 61 to 182 days in a calendar year.

 

Non-Resident Directors

Receive director's remuneration (excluding gains from stock option/other share ownership plans (ESOP/ESOW) in the capacity as a non-resident director  of a company which is a tax resident in Singapore.

      1). Withhold tax at 22% (20% for income due and payable prior to 1 Jan 2016) of director's remuneration;

      2). File Form IR37 and pay the withholding tax by the 15th of the second month from the date of payment of the director's remuneration. Confirmation of Payment letter will be issued to the employer.

It does not matter where the board meeting was held or that the individual was not physically working in Singapore. Such payments are taxable regardless of the physical presence in Singapore.

Singapore personal income tax structure is one of the friendliest and most competitive in the world. The tax year is from 1 January to 31 December in each calendar year and income is assessed on a preceding year basis. Singapore Tax adopts a progressive personal tax rates, relative to an individual’s amount of income.

  •  The amount of income tax that you have to pay depends on your tax residency in Singapore. The taxes for residents are different from non-residents.
  •  Top marginal resident tax rate of 22% kicks in at S$ 320,000 of taxable income.
  •  Non-residents are taxed at the flat rate of 15% or the resident rates whichever results in a higher tax amount.
  •  In general, all remuneration arising from an employment under which duties are performed in Singapore would be fully taxable irrespective of where the funds are made available to you
  •  Besides salaries and bonuses, perquisites such as housing and stock options will form part of your taxable employment income.