Important things to look out for during Tax Compliance

As per the company acts 175,197 and 201 for companies in Singapore, all companies operating in Singapore need to have AGMs (Annual General Meeting). There are several rules and taxes which one needs to be aware of, while running a business. Though many owners try to get an insight about the procedures on their own, it is advised to hire a tax consultant in Singapore to help. There are certain rules and regulations set by IRAS and ACRA which are required to be fulfilled by every company, thus hiring professional help is recommended.

There are a few firms working in Singapore providing tax consultation and accounting services. They are experts in managing accounting, payroll, taxation as well as bookkeeping records. Main services provided in this category are covered individual and corporate headings:

Individual Level Services

  1. Tax Filing Services:

    With Singapore becoming the hub of tourism, many people are finding it a great place to play, live and work. The economy of Singapore is emerging among other economies like Indonesia, Malaysia, Vietnam, Thailand and Cambodia. The friendly and people-based tax filing system prevailing in Singapore allows people to relocate to this city. All who are not living in Singapore as well as foreigners, are foreigners as far as tax payment is concerned. The tax payment depends purely upon the status of residency, total service period which is minimum of 60 days. In case any individual has a work permit or pass, he/she is liable to pay upfront tax.

It is always advised to hire a tax consultant who is an expert in compliance with extensive advisory services when filing tax for any individual. In the case where you forget to mention any relevant and important information, it will be quite the sticky situation.

Corporate Level Services

  1. Accounting and Bookkeeping:

    for submitting yearly account information to IRAS and ACRA in Singapore, compilation of account information is needed by all companies. Thus, as per the regulations of the Singapore Companies Act, all companies are required to keep account books intact for better maintenance of financial statements and day to day account information.

  2. Keeping estimated chargeable income: for the year of assessment, an estimated chargeable income also needs to be kept for new companies. At the end of the financial year, an ECI is needed to be submitted by each company. In case any company has zero income, then NIL ECI is even required to be submitted. It is the record of a company’s overall revenues, and estimated disposal of their fixed assets.
  3. Filing of GST: For all companies operating in Singapore with annual income more than $1 million, filing of GST is essential. There are, however, certain services like sale or purchase of residential property, transportation as well as import of precious metals and their local supply are exempted from the tax. The tax collection in Singapore is a multi-layered process. It is done at every step and at every distribution and production level. It is also paid in case of any business transaction of services and goods is being done.
  4. Management of Payroll: For any company, preparing payroll and salary of employees is an important part of business operations. In Singapore especially, some small enterprises outsource their payrolls to accounting services firms. Thus, sources need to be well trained and experts in managing payroll in the most effective manner. The payroll confidentiality level is also kept.

Thus, for all types of tax services and other related services, it is better to hire a corporate service provider to ensure it is done accurately and executed well for your company.