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May 16, 2022

The Convenience of Online Accounting & Bookkeeping Services Especially in the COVID-19 Pandemic

Companies have relied on manual records, spreadsheets, and accounting software to manage and monitor their financial resources for several years. However, the business industry is an ever-changing place. Thus, small- and medium-sized enterprises’ accounting and bookkeeping needs, too, are evolving.

With this change at the forefront of every company in Singapore, innovative and more agile business support solutions must be in place. As COVID-19 remains a threat to everyone, how do online accounting and bookkeeping services fill the gap between business needs?

Whether it is a small or a large business, employees are bombarded with work to meet daily expectations in terms of productivity and goals. All this is no joke to handle, from marketing to customer relationship management and everything in between. While you try to keep up with these activities, you unintentionally ignore your core business and administrative functions.

Although managing your own accounts might have made more sense when you started your enterprise because it saves money, outsourcing from another company to get things done could be more beneficial, especially as the economy is experiencing several challenges brought by a health crisis.

But why not rely on dependable online accounting and bookkeeping services? It will not only take some weight off your shoulders by reducing tasks on your plate but also keeps you away from the risk of COVID-19. If you hire a provider to handle your finances, you hit two birds with one stone.

Typically, businesses employ in-house accountants and bookkeepers to take care of their income and expenditure. But this setup is not for all as it is expensive and a long process. Because of that, it is practical to work with a service provider to perform accounting and bookkeeping activities.

Because the Traditional Approach to Accounting and Bookkeeping Is Changing, You Should Keep Up!

Because of the changes in the traditional approach to accounting and bookkeeping, it is even more challenging to keep up in a competitive market. There were manual records, ledgers, accounting books, and spreadsheets to cater to accounting needs before. Accountants also needed to keep up with the evolving bookkeeping and accounting requirements of small- and medium-sized businesses.

The ongoing coronavirus crisis forced many business owners to work remotely. But more than that, it also changed how many industries work in many significant ways. Therefore, having flexible access to your financial resources should not be an option but a must.

Additionally, the increasing pressure on small businesses to adapt digitised accounting and tax reporting is not helping any company owner grow their businesses. Instead, it forces them to engage in a whole new level of function they are unfamiliar with.

4 Advantage of Online Accounting and Bookkeeping Services in the Middle of a Pandemic

The list below will tell you more about the benefits of online accounting services. Let us get in-depth with each one of them.

  1. CSpecialised Business Solution

  2. Managing a business is not an easy task, as it requires several years of experience and a skilled workforce to achieve short- and long-term business goals. Sometimes, mistakes are even part of the process that leads to growth. But if you ask a successful business owner, success does not happen overnight—it takes time and constant learning. There is no shortcut to everything related to starting, managing, and growing a business. Thus, every step should be taken to ensure no stone is left unturned.

    Business is a challenging venture, so it is safe to say that it requires specialists. The ever-changing business laws and regulations in Singapore should be handled by someone who has a specialised set of skills. Getting online accounting and bookkeeping services ensures your business will get to experience the following:

    • Financial planning
    • Financial assistance
    • Forensic accounting
    • Managerial accounting
    • IT auditing
    • Non-profit accounting
    • Tax preparation
  3. Cost-Effectiveness

  4. The average salary of a full-time CPA is more than $100,000 annually, based on the Journal of Accountancy. Meanwhile, an in-house full-time bookkeeper is cheaper which you only need to pay over $40,000 every year. But it is vital to note that this range is only starting salaries. Employing an in-house talent also demands employment benefits. On top of that, you have to increase their pay every year depending on the arrangement.

    But it does not end there. You also need to hire a recruitment team that will hire your employees. You don’t need to get through all this, though. With reliable online accounting and bookkeeping services in Singapore, you can save money.

  5. On-Time Reporting

  6. Staying on top of your business functions is one way to ensure that you are on track to achieve your goals. However, you do not always have to manage and monitor your financial resources all by yourself. When you hire a service provider to manage your accounts, it ensures that you will easily access the following:

    • Losses
    • Profits
    • Tax Information
    • Personnel information
    • Payroll data
    • Insurance payment
    • Procurement

    Knowing this information, you can have an idea of what areas of your business need the utmost attention. You and your team can improve these areas with that knowledge. Also, with comprehensive account reporting, you will make educated decisions. It would be better to work with a professional team to look after your monetary resources. With them taking care of accounting and taxation functions, you can focus more on growing your enterprise as much as possible.

  7. Personalised Business Support

  8. Every business has different accounting and bookkeeping needs. In order to meet these expectations, service providers offer personalised services made specifically for clients. Doing this ensures that the desired results are met efficiently and within the target timeframe. That said, selecting the right online accounting and bookkeeping services provider is essential, especially in an uncertain time. The pandemic is an anxiety-laden period, and it is when you need trustworthy people more than ever working for your business.

    No Need to Look Far Because ContactOne Has the Experience and Expertise to Help Manage and Monitor Your Financial Resources

    The pressure of adapting to businesses’ digitised accounting and bookkeeping functions forces them to engage with the unfamiliar. The result is they don’t get it right on their first attempt. Only a strategic approach and personalised services will free enterprises from this burden.

    ContactOne provides innovative online accounting and booking services designed to help businesses stay on top of their expenses and income. Want to learn more? Call us on +65 6333 0633 or +65 8666 3633.

April 22, 2022

A Comprehensive Guide to Corporate Tax in Singapore

One of the reasons that keep Singapore on top of the most business-friendly countries’ list is its continuous dedication to reducing corporate tax and introducing various tax incentives that attract and retain global investments. At present, the country follows a single-tier corporate tax system, in which company-paid taxes are not chalked up to the investors. That is why it is important to understand the way around corporate tax in Singapore if you plan to start a company in the country.

Learning the corporate tax system of a hustling business hub like Singapore is not an easy task. It is challenging, especially for a startup owner who is a novice in the business industry. Although Singapore’s government and other qualified organisations regulating businesses in the country are stringent when it comes to compliance, they keep companies in the know about their status.

If you want to know more about the corporate tax system, you can check out the Inland Revenue Authority of Singapore’s (IRAS) website. This article is also a comprehensive guide to Singapore’s corporate tax, providing an overview of Singapore’s tax rate, tax system, and tax incentives. Continue reading below.

  1. Getting In-Depth with the Single-Tier Tax System
  2. Singapore started using a single-tier corporate income tax system on the first day of January 2003. Since then, the country has implemented no double-taxation for stakeholders. The single-tier taxation also entails that all stakeholder dividends paid by a company are free from further taxation. Moreover, capital gains in Singapore have no tax, including gains from fixed assets and foreign exchange transactions, and more.

  3. Singapore’s Headline Tax Rate
  4. Singapore has a current headline tax rate of flat 17%. This is to make the country an attractive destination for investors. Singapore’s income tax rates have consistently declined from 26% between 1997 and 2000 and went down to 25.5% in 2001 and 24.5% in 2004. From 2003 to 2004, Singapore’s income tax rate was 22%, while in 2005 to 2007 and 2007 to 2009, tax rates were 20% and 18%, respectively.

    However, having a headline income tax rate does not guarantee an effective corporate tax rate in Singapore and other jurisdictions. To make a tax rate effective, it has to be lower than the headline tax rate because of factors like applicable tax exemptions, tax incentives, and depreciation rules, among others.

  5. General Tax Incentives in Singapore
  6. Other parts of the corporate tax in Singapore are tax exemption and incentives. There are various tax incentives/exemptions tax resident companies in Singapore can avail of. The effective tax rate for small- to medium-sized enterprises in Singapore will be significantly reduced if tax incentives are applied to their taxable income.

    Starting the Year of Assessment (YA) 2020, the tax incentives of startups are 75% on the first S$100,000 normal chargeable income in the first three consecutive YA, only if they meet the following conditions:

    • The company is incorporated in Singapore.
    • The company is a tax resident in the country.
    • The company has no more than 20 shareholders. There should be at least one who is an individual shareholder holding a minimum of 10% shares.

    There is another 50% tax exemption of up to S$100,000 on taxable income. Newly registered companies are eligible for a partial exemption, up to S$100,000 per annum, from taxable income’s 8.5% tax rate. If the taxable income exceeds S$100,000, it will be charged with the 17% normal headline corporate tax rate.

  7. Is Singapore an Ideal Place to Start a Business?
  8. On a recently conducted survey of more than 100 startup owners in five territories, including India, Poland, the UK, the USA, and Ukraine, it was found that Singapore is one of the most highly-chosen places to start a business. Many factors were looked into, like business policies, startup resources, access to a skilled workforce, the rule of law, taxation, protection of intellectual property (IP), ease of global expansion, and quality of life.

    Despite the limited resources, Singapore became a world-class economy by strengthening its core proficiencies. Today, the country’s bloodlines are impressive infrastructure, advanced industrial sector, business-friendly policies, reputable global image, and flexible economic policies.

    Amidst the strain of setting up a business, Singapore is an excellent choice because it is easier to establish a business in the country and grow it. Apart from this, Singapore is a very diverse country, full of rich culture and has a world-class economy that creates more opportunities for innovative and creative people. All this contributes to achieving business success. Singapore is fast becoming a home for entrepreneurs worldwide, with many programs dedicated to helping foreign investors.

  9. The Bottom Line Is
  10. As a startup owner vying for a breakthrough in the business industry, you should utilise all available resources to achieve your goals. One of the many factors contributing to a successful business is the corporate tax system. There is no place like Singapore in terms of favourable tax jurisdiction in the world.

    The process of corporate tax in Singapore is fairly straightforward, and it is easy for companies incorporated in the country to reduce tax expenses significantly because of the low headline tax rates and generous tax exemption and incentives. Other than that, the exemption on capital gains and dividends increases the benefits of shareholders from their investments.

    Lastly, Singapore’s government effort to implement the Avoidance of Double Taxation Agreements helps businesses to thrive in the business landscape. It also allows them to expand their scopes internationally with no extra taxes to pay on foreign-generated income.

Looking for a Corporate Service Provider in Singapore to Help Sort Out Taxes?

A business owner’s worst nightmare is to be charged with a tax evasion case. Prevent this from happening by hiring a reliable corporate service provider in Singapore like ContactOne. We offer business support services, including secretarial and accounting services. The best thing about outsourcing a business support provider is that you know everything is taken care of. With that, you can focus more on other critical business elements that are profitable to grow your company.

Taking things into your hands is not the most practical way to go. Haphazardly managing tasks is likely to happen if you do not hire a corporate service provider. Call us now on +65 6333 0633 or +65 8666 3633 now. We will be glad to work with you!

April 22, 2022

How Accounting and Tax Services Help Avoid the Consequences of Late Payment and Non-Payment of Corporate Tax

Business-friendly, flourishing economy, and impressive developments, all this come to mind when somebody mentions Singapore. These things are also the reasons the country is considered one of the most picked places by tourists and expatriates, especially entrepreneurs. But beyond Singapore’s booming business landscape, there is one thing every business owner should take a closer look at. And that is tax.

Consider Accounting and Tax Services to Avoid Tax Penalties in Singapore

The Inland Revenue Authority of Singapore (IRAS) will impose penalties if a business fails to file its taxes on time, including issuing a Travel Restriction Order (TRO) and other legal actions. This is the last thing many business owners want to happen. That is why a professional must take care of taxation and other functions related to a company’s compulsory contribution to the state revenue.

Whether a startup or an established enterprise needs a corporate solutions’ provider to help them form, manage, and grow, an expert by their side makes sure their business would not suffer from the consequences of late payment or non-payment of corporate tax in Singapore. Business owners can spend more time on income-generating activities that contribute to business growth if they entrust an expert to manage accounting and tax services.

In a saturated business hub like Singapore, a business losing its footing is bad news. That is why establishing a rigid business foundation from the start is essential, especially amidst tight competition. What better way to cement a successful future and multiple breakthroughs than having a long-term partner who can manage tax and accounting services single-handedly? So, choose a reliable business solutions’ provider now and witness better changes in your business.

What Are the Different Taxes in Singapore?

The fact that Singapore is a small island nation with world-class infrastructures and luxury destinations and entertainment already speak of success. But if you look past the expansive business skyline, the country in itself is a self-made business and finance giant. Without a doubt, foreign investors are lured into doing business here because it is on top of the list for the most business-friendly and tax-friendly business hubs.

If you are looking into business opportunities in Singapore, tax is something you should learn and understand heartily. Tax is a contribution mandated by the laws, and the government levies it either from workers’ income, business profit, or costs of some goods, services, and transactions.

Below are the different taxes in Singapore:

  1. Corporate Tax
  2. Corporate tax in Singapore is only applicable to companies with incomes sourced from the country. Both resident and non-resident companies are responsible for contributing to the state’s revenue. The government requires these companies to file for income tax, whether received or derived within Singapore’s territory.

    On the other hand, it is essential to note that no tax is required on any person or company’s income from other territories. However, a 17% flat tax rate is chargeable to a company’s taxable income, such as capital gains, sale of fixed assets, and gains on foreign exchange on capital transactions, among others.

  3. Goods and Services Tax (GST)
  4. Both goods and services that are made and imported to Singapore are subject to a 7% tax. GST is exclusive to goods and services, and it does not cover other services related to finance, sales, and lease. GST is comparable to the Value Added Tax or VAT in other countries, like Hungary, the Philippines, Puerto Rico, and Russia, to name a few.

    The most enticing part of starting a business in Singapore is its income tax rate between 0% and 22%, depending on an individual’s earnings made in the country exclusive of capital gain and inheritance tax, according to the World Economic Forum.

  5. Income Tax for Limited Liability Partnership (LLP)
  6. In Singapore, LLP is a business structure with two or more partners, who must be at least 18 years old and living in the country. Partners can also be a body corporate of another business or LLP. Although a company is an LLP, it is not taxed as an entity. Rather, incomes from LLP’s profits are categorised as a partner’s personal income, in which the personal income tax rate is applied. Therefore, it is not the partnership liable to tax, but the partners.

  7. Income Tax for Sole Proprietors and Partnerships
  8. A sole proprietorship or a partnership’s business income is part of an owner’s personal income. The personal income tax rate is applicable in this situation, too. This happens when customers pay for goods produced in Singapore, or you make money through overseas sales and receive it in Singapore. Remember that a business or an individual that makes income in Singapore is under the country income tax policies. Taxable incomes include salary, interests from deposits, and other chargeable income sources.

    Other than that, sole proprietors and business partners can avail of tax incentives or exemptions to reduce their taxes. It helps keep their business running in Singapore. Tax deductions, rebates, and tax relief are also available to keep their business afloat in the country.

  9. With Holding Tax and Property Tax
  10. A business incorporated in Singapore, but its employed staff, agents, and partners are non-residents, is subject to withholding tax. The IRAS will collect the withholding tax from these companies. Tax withheld from them comes from overseas commissions and fees and offshore non-resident partners and employees.

    Meanwhile, property tax covers all properties in Singapore, like Housing and Development Board (HDB) flats, offices, factories, warehouses, and even vacant lots. Property owners may pay a 10% taxation rate before the 31st day of January every year. There is a deduction to this rate depending on certain conditions set up by the appropriate regulating bodies.

ContactOne Is Your Partner in Handling Corporate Accounting and Tax Services

If your business’s taxes and accounting tasks left you scratching your head, then you need a provider who can deliver productivity like Xero Accounting Singapore or better. ContactOne is ready to take on financial jobs. Call us now on +65 6333 0633 or +65 8666 3633, and we will walk you through options and ideas to make your business its best version.

April 22, 2022

5 Benefits of Tax and Accounting Services

Even if starting a company in a business hub like Singapore is easy, challenges do not end at business formation. A business that wants to succeed in a saturated and competitive market has more work than registration. Do not fret, though, because a corporate service provider can help with anything business-related. Tax and accounting services are some of the services they offer, essential to startups in Singapore. Continue reading this article to learn more.

Why Are Tax and Accounting Services Essential for Businesses in Singapore?

A business is not easy to set up. From developing a compelling business plan to implementing efficient marketing strategies, a business owner has to go through all this to ensure success from the get-go. Because of this, many business owners want to get involved in all activities related to their business. However, haphazardly handling things does not guarantee business success. If you think nothing gets done effectively without your intervention, think twice. And ask yourself if you are acting as a business owner or a business manager?

Many startup owners made the same mistake when they started doing business in Singapore. Most of them feel the need to be involved in everything. But, doing so does not result in excellence. The worse thing is that their business suffers, and the consequences of their actions are starting to show. This only shows that being too involved in daily business operations leads to unawareness of actual business health.

In a situation like this, business performance is the most affected area. Not just that, it also leads to a domino effect, resulting in stagnant growth and significantly impacting the business’s financial health. More than that, this problem could get out of hand if you do not take preventive actions. If you are too consumed with doing everyone else’s job, you might not know that the solution to your difficulty is just around the corner.

With many things happening in an office setup, you need someone else to look after your business’s finances. You need to find a professional who can handle this essential task. When you find one, you can expect them to report back to you about what needs to be done to improve business finances and other things, directly and indirectly, related to it.

When it comes to your business finances, it is crucial to understand the benefits of outsourcing tax and accounting services. Finances are the driving force of your business, and that is why they should be taken care of by someone who puts your financial health a top priority. Although it costs more to hire bookkeeping services, it will compensate you as time goes by. And do not even think about doing accounting and taxation services yourself because it will never work while you are too distracted by the ever-changing industry.

Below are five benefits of tax and accounting services. Read on to know more about why you should let an expert manage your business’s finances.

  1. It Lets You Spend More Time on Your Business
  2. As a business owner, you should know your priorities in running a business, and the one on top of your priority list should be business growth. Believe it or not, it is challenging to hit two birds with one stone. You can’t juggle business income-generating activities and manage your finances at once. It is easy to understand that you want to know how much money goes in and out of your business; however, this is very complex amidst its various flowing areas. With a professional accountant at the helm, you can focus on your business, knowing an expert is handling everything.

  3. It Helps You Save Money
  4. Every small business should only allocate its payroll to employees who bring in money, like sales and marketing professionals. Although an accountant plays a vital role in monitoring monetary resources and complying with tax laws and regulations, they are not a source of income. That being said, doing accounting and tax services in-house is not a practical move, and outsourcing a corporate service provider becomes more beneficial than ever.

    Hiring another company to support your business ensures that you only pay for what is being performed. No one should sit on your payroll waiting for work assigned to them. When your business starts to expand, you can bring in accountants and bookkeepers.

  5. It Offers Expert Consultations
  6. A qualified tax and accounting service provider focuses on providing expert advice on financial needs and nothing else. You cannot expect them to engage in sales, marketing, and customer service because finance is what they do best. As much as you want to secure your business’s future, you must trust an expert to manage your financial information.

    Choosing the right tax and accounting service provider is essential for your company. Hire a reliable provider who can properly deliver the effort you need to get things done on time. Working with them will help you stay up-to-date with new knowledge, follow the best practices, and look out for beneficial innovations within the industry you operate.

  7. It Provides Professional Accountants
  8. Finance is considered one of the most complex business aspects because of its moving parts. Because of this, it is only right to outsource this part of your business to an expert. Working with a solutions business provider that specialises in accounting will ensure high-quality services, including accounting, taxation, and bookkeeping. Moreover, you can also designate business functions effectively and align them all together for a more productive and cohesive business unit. Therefore, when tapping a company that offers tax and accounting services, you will be provided with a professional team that can accurately take on the job.

  9. It Gives Advice on How to Grow Your Business
  10. Whether you are a startup or an established business in Singapore, your main goal is to succeed in the industry, achieve short- and long-term goals, and continue growing amidst challenges and determined competitors. But there is no such thing as a formula to success. Successful businesses acquired advice from other companies they worked with. Hiring a tax and accounting service provider now means collaborating with another business with the same goal.

Having a Reliable Team Working on Your Tax and Accounting Tasks Will Greatly Help Your Business

Are you looking for a reliable tax and accounting service provider? Turn to ContactOne now. We know the importance of proper accounting. With this knowledge, we are able to provide strategic solutions to our client’s needs. Call us on +65 6333 0633 or +65 8666 3633.

November 29, 2017

ContactOne Receives Recognition From IRAS For The THIRD Straight Year

ContactOne has been recognized by IRAS, the Inland Revenue Authority of Singapore, as one of the top 15 tax agents with the most number of Form CS e-filing done for our accounting and tax clients for the Year of Assessment YA2014, YA2015 and YA2016. We are happy to have achieved this accolade for 3 consecutive years since the inaugural recognition 3 years ago.

We would like to thank IRAS for this recognition which represents a significant milestone achieved by the entire ContactOne Family. The online filing platform for Form CS has many advantages ranging from better accuracy, reduced errors and wastage. We are glad that the online filing platform will be extended for Form C filing for the coming YA and we definitely will be looking forward to its implementation this year.

The management would like to take this opportunity to thank all of the lovely and dedicated staff of ContactOne for this would not have been possible without your dedication and hard work. We are extremely grateful to have all of you here with us.

Lastly, the ContactOne Family would like to promise our clients that we will continue to uphold our level of commitment towards assisting you to meet your compliance deadlines on time. Process tweaks and improvements are currently underway to enhance your experience with us. We target to continually improve on our service delivery (as well as continue with our multi-pronged reminder system to enable you to remember and meet your deadlines :).

To find out more about our Accounting and Tax services, click HERE.
To visit the IRAS source page, click HERE.