Tax Compliance

2018-02-14
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GST Application Process

GST Application Process Scope of the GST As a basic principle, sales of goods or services made by a business in the course or furtherance of its business are subject to GST at the standard rate of 7% unless the sale qualifies for zero-rating or is exempt from tax. The main tax exemptions are for financial services and residential sales or leases. The zero-rating applies to the international supply of services and the export of goods. When is GST paid? GST is payable when you purchase goods and services, and import goods into Singapore from a company that is GST […]
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2018-03-01
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Taxable and Non-Taxable Income

Taxable and Non-Taxable Income Taxable and Non-Taxable Income All income earned in or derived from Singapore is chargeable to income tax. Generally, overseas income received in Singapore on or after 1 Jan 2004 is not taxable, except in some circumstances. Income earned may come from different sources such as: Employment Trade, Business, Profession or Vocation Property or Investments Other Sources (e.g. annuities, royalties, winnings or estate or trust income)   Income from Employment Salary, Bonus, Director’s Fee, Commission and Others Gains from the Exercise of Stock Options Income Received from Overseas Pension Retrenchment and Retirement Benefits   Income from Trade, Business, Profession […]
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2018-03-02
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GST Registered Company

GST Registered Company GST Registered Company With effect from 1 January 2019, your company should register for GST if its annual taxable turnover exceeds S $1 million during the 12-month period ending each calendar year. That is, your company must register for GST if it is determined that its taxable income will exceed S$1 million in the next 12 months. The projections must be supported by the following documents. Signed contracts or agreements Accepted quotations or confirmed purchase orders from customers Invoices to customers Past P&L statements showing annual turnover of nearly S $1 million for the past 12 months and […]
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2018-04-05
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Withholding Tax Filing

Withholding Tax Filing Extension of Withholding Tax Filing and Payment Due Date  New! In light of the latest measures to manage the COVID-19 situation, the filing due date for all S45 Withholding Tax Forms due in Apr 2020 will be automatically extended to 15 May 2020. The payment due date will also be extended to 15 May 2020. For those on GIRO and who file by 15 April 2020, the deduction date remains as 25 Apr 2020. If GIRO deduction is unsuccessful, a second GIRO deduction will be automatically scheduled for 25 May 2020.  For those on GIRO and who file by […]
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2018-04-27
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Withholding Tax Requirements

Withholding Tax Requirements Who Are Non-Resident Companies or Individuals To determine whether withholding tax is applicable, the Payer has to ascertain that the payment was made to a company or an individual who is Non-Resident in Singapore. Non-Resident Company A company is either a tax resident or a non-resident of Singapore. In Singapore, the tax residency of a company is determined by the place in which the business is controlled and managed. “Control and management” is the making of decisions on strategic matters, such as those on company policy and strategy. Where the control and management of a company is […]
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2018-06-01
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What Is Withholding Tax

What Is Withholding Tax Withholding Tax Under Singapore law, a person (known as the Payer) who makes payment(s) of a specified nature (e.g. Royalty, Interest, Technical Service Fee, etc.) to a non-resident company or individual (known as Payee) is required to withhold a percentage of that payment and pay the amount withheld(called ‘Withholding Tax’) to IRAS. What Are The Payments to a Non-Resident that Require You to Withhold Tax Payments for Services, Interest, Royalty, Rental of Movable Properties, etc. Payments to Non-Resident Directors, Professionals, Public Entertainers & International Market Agents Foreigners/PRs Withdrawing from Supplementary Retirement Scheme (SRS) Account Distribution of […]
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2018-06-06
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Who Needs To Pay Income Tax

Who Needs To Pay Income Tax Essential information for individuals who are required to pay Income Tax.   Obligation to Pay Income Tax All individuals earning, deriving or receiving income in Singapore need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession. Individuals are taxed based on the income earned in the preceding calendar year. This means that income earned in the calendar year 2019 will be taxed in the Year of Assessment (YA) 2020.   Individuals Working in Singapore All individuals who receive payments (whether in the form of […]
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2019-04-26
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Loss Carry-Back Relief

Loss Carry-Back Relief Companies may carry-back unutilised capital allowances (CAs) and trade losses arising in a Year of Assessment (YA) to reduce the amount of taxes payable in an immediately preceding YA. Background of the scheme To help small businesses cope with cash-flow problems especially in cyclical downturns, a one-year carry-back of current year unutilised CAs and trade losses was introduced effective YA 2006. The Loss Carry-Back Relief complements the existing policy of companies being able to carry forward their unutilised CAs and trade losses to setoff future incomes (i.e. loss carry-forward) or transfer unutilised CAs and trade losses to related […]
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2019-06-18
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Partial Tax Exemption

Partial Tax Exemption Partial Income tax Exemptions Year of Assessment (YA) Tax rate Tax exemption/ rebate 2013 and subsequent YAs 17% Partial tax exemption and tax exemption scheme for new start-up companies Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Partial tax exemption for companies (from YA 2020) Chargeable income % exempted from Tax Amount exempted from Tax First $10,000 @75% =$7,500 Next $190,000 @50% =$95,000 Total $200,000 =$102,500 Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020) Chargeable […]
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