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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.

January 27, 2022

Hiring a Corporate Service Provider in Singapore Vs. Doing it Yourself

It is easy for any business to lose footing in a saturated market like Singapore. That is why it is crucial to establish a rigid foundation from the get-go. But how do companies maintain their momentum in an ever-changing industry filled with determined competitors?

There are many ways to help with business success, including a detailed business plan, clear market perception, strategic marketing, and efficient budget planning. Moreover, another highly recommended business support is hiring a corporate service provider in Singapore.

Many corporate solutions providers in the country follow specialised methods that help unleash a business’s fullest potential. However, the best service provider still depends on your business needs and structure. With that being said, it is vital to heartily understand your business, its operations, and other factors contributing to its continued survival before hiring a corporate service provider in Singapore.

Corporate services are designed to eliminate the strain of forming, growing, and maintaining a business. Despite all this, it remains a questionable approach for some business owners. And the one question that most of them consider is whether it is more practical to outsource corporate tasks to a third-party service provider or go the extra mile and take matters into their hands.

 

Why Is Engaging in a Corporate Service Provider Worth It

If you plan to hire a corporate service provider in Singapore, you must weigh your options first and not make haste decisions. The benefits of outsourcing a company to support your business venture comes in many forms. Sometimes, it depends on the provider’s package, but mainly on the joint dedication of the business owner and the provider.

In a hustling business landscape like Singapore, many service providers claim to be the best and vie for new clients. It can be challenging to choose the right provider for your business amidst many choices.

To help you decide, below are six services a provider can do for your company and their respective benefits. Let us take a closer look.

 

Corporate Service Provider in Singapore

 

Things a Corporate Service Provider Can Do for Your Business

A registered company in Singapore needs business support of some sort. Doing so does not only aid a company’s formation, operation, and growth, but it also complies with the requirements of the Singapore Companies Act.

Here are the six things a corporate service provider can do for your business:

  • Incorporation Services
  • Human Resource Services
  • Accounting and Tax Services
  • Business Advisory and Licensing Services
  • Finance and Banking Services
  • Immigration and Relocation Services

Under Singapore’s business laws, every company can opt to hire in-house staff to handle each service. They can also outsource a corporate service provider to do their work. Below are the benefits of engaging in a corporate service provider in Singapore.

1. It Saves Time and Resources

Managing a business in a bustling Singaporean business hub involves a lot of paperwork, and it can take up more resources than expected, including time, space, and many more. Although the work is essential, it is not productive. Channelling all your energy into it will be challenging as you can no longer focus on other essential tasks. If you want to give the key elements of your business more time, you should consider a corporate service provider specialising in a specific line of services.

2. It Provides Timely Compliance Knowledge

Business laws in Singapore are ever-changing, and keeping up with these changes can be difficult, especially with other things on your plate. More than that, regulating bodies are strict when it comes to compliance with the laws, and they expect every business to follow the standards they set. But compliance is not a problem if you hire a corporate service provider in Singapore because they have up-to-date compliance knowledge. With them at the helm, you can focus on handling profitable business activities.

3. It Is Cost-Efficient

Given that a corporate service provider offers various services from human resources to immigration, you can think of how much money you can save by not hiring in-house professionals to handle support services. Indeed, it is cheaper to outsource a corporate service provider. Having that extra money means you can dedicate this fund to other business ventures that you think are beneficial to your company.

Service providers can offer affordable services because they specialise in doing what they do best: support form, operate, and grow a business. With several experiences in the industry, they know the way around distributing resources effectively. If you are lucky, you may encounter one provider who provides all services. Cost efficiency is one of the main reasons most businesses hire a corporate service provider in Singapore.

 

Factors to Consider Before Hiring a Corporate Service Provider

Choosing the right corporate service provider that can match your effort to get things done plays a critical role in achieving business success. Although having a lot to choose from is not bad, it makes selecting one corporate service difficult.

Do not fret because the list below will help you factor out the providers within your radar. Here are the things to consider before hiring a corporate service provider in Singapore:

1. Speciality

A corporate service provider focusing on one support service is more productive because they focus on specific aspects of a business. This factor is one of the things that you should take a closer look at before hiring a service provider.

2. Organisation

A good organisation should seal the deal. As there is much paperwork involved in managing a business, a corporate service provider with a good organisation can easily deliver tasks on time. If you hire a service provider, keep this in mind all the time.

3. Communication

Managing a business in Singapore mainly involves a lot of liaising tasks and exchanging different information. All this is only possible with good communication. Hire a corporate service provider in Singapore that you can easily communicate with to ensure smooth workflow.

4. Reputation

Customer experience is an important part of hiring a corporate service provider in Singapore. If you work with a provider, what their previous and current clients have to say tells a lot about that provider. Make sure to read reviews and assess the service provider.

5. Assurance

Mistakes happen sometimes. Though it is inevitable, being accountable for shortcomings is the foundation of a strong customer relationship. Look for a corporate service provider that is not afraid to be liable for consequences.

Why Doing Corporate Services Yourself Is Not a Practical Move

Although outsourcing tasks to a corporate service provider in Singapore costs extra money, it will double compensate your business in the long run. Hiring a corporate service provider can save you time and money, and it also ensures that everything related to your business is taken care of. For business support services, turn to ContactOne. 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.