How to avail company income tax services in Singapore and complete guidance on taxation?

The research study and global survey about the current market scenario of the business investors state that most of the investors around the globe are much interested to establish their business operations in Singapore and there are numerous reasons to do so. It is much easier to set up and operate a new business which is the prime motivator in the business sector. The most important strategy that attracts corporate business to Singapore is the regime of Singapore’s tax which is a well known central determinant. Singapore’s tax is well known for personal tax rates, corporate tax rates, tax relief measures, no capital gain tax, enlarged double tax treaties and one-tier tax system. You can also get overall guidance about the taxation process from professional and expert personnel from Company Income Tax Services in Singapore.

Who are the eligible personnel for charging tax including as well as excluding profit?

The business entrepreneurs including trustees, corporations, partnerships as well as a group of people working with trade, business or profession are eligible to get charged to tax on all kinds of profits in Singapore which excludes the profit that comes out of selling the capital assets. These gains should have been arrived in or taken from Singapore which also includes trade, business or profession that is mainly foreign-sourced. You must certainly understand the general overview of the taxation system and tax rates in Singapore to plan the business and trading accordingly. It is even better if you start estimating the Singapore taxes and compare it to the other country’s taxation and invest accordingly.

A short note on the PIC scheme

Many of the business individuals in Singapore are much aware of lapsing productivity and innovation credit which is generally known as PIC scheme. The scheme has lapsed after 2018, the assessment year, however, refers to the company’s financial year of 2017. The company which has its financial year ended in 2017 would qualify for the expenses within the PIC advantages. The financial year 2017 was the deadline period that was given to the company.

How to take up taxation services such as filing and planning?

The decision that you take up in any kind of business or corporate sector includes the implications of tax and it is essential to control the requirements of the income tax efficiently. You can also seek the assistance of a tax professional who is also a member of SIATP (Singapore Institute of Accredited Tax Professionals). They would certainly inform you about the current scenarios of market developments which can make a deep impact on your business. Besides business strategies, entrepreneurs should also concentrate on the identification and implementation of tax strategies of their organization.   

General tax services provided by the professionals and accountancy experts

There are a few sets of general tax services given by the professionals and accountancy experts of every Company Income Tax Services in Singapore include,

  • Structuring of Singapore tax
  • Planning of Singapore tax
  • Employment packages and its Tax-efficient structuring
  • Auditing GST
  • Providing advice GST
  • GST structural planning
  • Company Income Tax
  • Optimizing the usage of incentives upon tax
  • Optimizing the usage of exemptions on tax
  • Compliance Corporate tax
  • Filing the tax of personal criteria
  • Filing the tax of Partnership criteria
  • Addressing Tax disputes with better Representation
  • Individual Tax planning
  • Corporation Tax planning
  • Filing and calculating GST
  • Framing compliance on GST
  • Negotiating of tax incentives with the assistance of tax authorities

The details of the services provided in a wholesome package

The few professionals provide the services in the form of a complete package and the most common packages include,

  • Submission of Form C-S and also Form C and respective appendixes to IRAS. The detailing and analysis of the sample can be done with the overview of form C-S/ C.
  • Preparation of tax computation and the detailing and analysis of the sample can be done with the Tax Computation.
  • Planning of taxation which also includes personal income tax planning ( The charges can be levied based on the complexity of planning taxation which can be a little extra than normal charge)
  • Filing of ECI to IRAS annually. The detailing and analysis of the filing sample can be done with the basic definition of ECI (Estimated Chargeable Income)
  • Tax authorities would tend to raise any kind of tax inquiries and the professionals would assist you in attending the same.
  • The professionals would assist you in replying thereto (The charges can be levied based on the complexity of queries taxation which can be a little extra than normal charge)
  • Reminding about the timely by call as well as email
  • Processing the payment on behalf of customers and clients

How to pay the income tax?

There is a certain option that is available to process your payment levied on income taxation and you can also seek the assistance of professionals or tax experts to help you with these payment services.

  • Payment can be processed through cheque
  • Availing payment in the form of billing payment through Internet banking for POSB as well as DBS and OCBC customers
  • GIRO through AXS stations especially DBS or POSB customers
  • Payment through cash or nets at any form of SingPost Counter

What is meant by the FTC?

FTC is termed as Foreign tax credit and it refers to the foreign income earned by Singapore company. This company might get a subjection of taxation twice and that includes

  • One time in the foreign country
  • Another time while remitting foreign income into Singapore

FTC (Foreign tax credit) is conferred just by allowing the tax residence company in Singapore for claiming the credit for fulfilling the total tax payment in the foreign country against the Singapore tax which is payable on the same income.

The implementation of Corporate taxation in Singapore

The corporate tax of Singapore is capped at 17%. Singapore is gradually increasing its potential to attract a good share of foreign investment just by keeping the competition of foreign rates. The company or business sector pays the tax to the Singapore government based on its profit which is not imputed to the shareholders and hence making the dividends tax-free since Singapore is following a single-tier corporate type of tax system.

The personal taxes in Singapore start at 0% and are capped above S$320,000 which could be approximately 22% for residents. The flat rate of non-residents comes around 15% to 22%. To increase tax resilience as the main source of government revenue, the Singapore government introduced GST (Goods and Services Tax) in 1994 and the current rate of GST is nearly 7%. The vulnerability of revenue intake is a form of balanced mixing of consumption tax that can lead towards the adverse change of economic conditions and also brings up the resilience strength of fiscal’s position in Singapore.

The main key facts of the Singapore Income Tax System

The taxation in Singapore is mainly based on the territorial kind. You can also otherwise state it as the taxation levied to individuals and the company is mainly based on Singapore sourced income. The remitted or deemed remitted foreign source income such as dividends, branch profits, service income, etc.would be taxed in Singapore if the income was not subjected to taxes under jurisdiction previously along with headline tax rates of 15% to the least. The concept behind the location of the entire income source would be simple when you take an overall look but in real cases, the application of it would be often quite argumentative and complex. The rule is not applicable for every case and it differs slightly in all cases. The arise or derivation form of profits from Singapore is dependable on the profit nature and the transaction nature which also gives the rise of similar profits.

Availing the personal taxes

Few subjects withhold tax in Singapore such as rentals from movable properties, technical fees, royalties director’s fees paid to individual non-residents, management, Interest, and royalties director’s fees paid to companies non-residents. The tax year for personal taxes is the usual calendar that is January 1 – December 31. April 15 is the deadline to file a personal tax return. A company could make a free decision on its financial year to pay its corporate tax.  November 30 is the deadline to file a corporate tax return. The corporate taxes are paid based on the preceding year. Singapore has terminated more than 50 mutual comprehensive tax treaties for helping companies in Singapore to lessen their tax responsibility.