Tax filing in Singapore: Leave it to the Professionals
With Businesses flocking to Singapore, it’s no surprise that there are a lot of Corporate Service Providers in Singapore. But are they worth it? And why should you hire one maybe for tax filing services?
Let’s find out!
For more than a Decade Singapore has been a top choice for businesses. This is because the government has shown a commitment to taking action. They have digitized almost all of the processes which businesses have to deal with. From Company incorporation to Employment Pass Visa. Each process that requires the government’s approval or support runs like a well-oiled machine. Seamlessly working together, all of the government departments ensure the businesses do not have to waste time in bureaucracy. This is the hallmark of the efficient Singaporean government. Hence they are renowned for their business-friendly policies worldwide.
This is a big part of why Singapore is a hub for businesses. Furthermore, businesses require specialized service providers. This is the icing on the cake in Singapore. The Corporate Service Provider (CSP) market in Singapore is very well established. They cater to companies of many sizes and types. You can easily get office relocation services, accounting services, legal services, employment services, and company incorporation services to name a few. Because of stiff competition, the CSPs have to maintain a very high level of professionalism. On top of this, they also offer the best customer service as they want to see return customers. This results in a culture where businesses have no trouble finding the right man for the job, at the right price!
Now let’s figure out Tax filing in Singapore.
It doesn’t matter what country your business is in. Each country has a rather detailed set of instructions for tax filing. And almost always each country has a very different set of rules and methods of evaluations. This means that businesses always need to hire local talent to get the job done. But what if you are a small business and do not want to spend the extra amount on an accountant that you don’t need?
Well, then Singapore is the best place you could be!
The Inland Revenue Authority of Singapore (IRAS) has all the details which you need to study before you can file taxes. Here is a summary:
Companies need to report tax details of their employees as well as themselves. Self-employed business owners also have their separate category and rules. Companies have to file their income tax annually while considering any rebates they may receive
Companies may even pay their taxes in installments if they have been approved and are on GIRO. Companies may also be eligible for partial or complete tax exemption based on their Financial status at the end of the year. Companies submit their Estimated Chargeable Income (ECI). The Revenue Authority of Singapore (IRAS) calculates their payable taxes. This process is completely online and convenient. Now the company receives a Notice of Assessment (NOA). This document mentions the amount of tax to be paid. Companies have exactly one month to pay the amount mentioned on the NOA.
As a lot of businesses use CSPs for this so there are two types of users on the online tax portal. “Preparer” can fill the document however cannot submit the returns to IRAS. This power lies with the “Approver” only. There may be a claim for relief under different policies, so the ECI mentioned in the form by the business owner must be adjusted accordingly.
Companies are liable to pay their taxes within 3 months of closing their accounts for the first time. TO be able to start filling in the information you will need the company’s tax reference number along with the login details of CorpPass. Comprehensive guides are available on CorpPass for business owners and tax filing agents.
To provide support to businesses, any revenues expenses which were made at least a year before the date of commencement of business will be considered for tax purposes. IRAS also conducts seminars for helping and guiding tax filers about how to file taxes properly and the resources that are there on government websites for their guidance.
As with all governments, the tax laws are subject to change, and businesses are expected to stay up to date.
One very important aspect is that this entire summary is for income tax returns with IRAS. However, the Annual return with ACRA is a separate and independent return of financial statements. Unless your company has been granted a waiver for the corporate income tax return, you are liable to file the income tax with IRAS.
Filing with ACRA has its own rules, requirements, and deadline. Thus from the above discussion, it is very clear that any company must hire professionals to file their tax returns. And as we already know CSPs are there to help you out in every step!