As businesses expand their operations into new markets, the complexity of managing tax risks and compliance with reporting requirements multiply. Managing the business’ tax exposure in this dynamic business landscape require in-depth expert knowledge of all relevant taxes. To maximise economic returns, it is vital for a company to put in place an effective tax plan to make the most out of the applicable tax reliefs and incentives. This is especially important for companies undergoing restructuring or embarking on new business ventures.
We prepare Singapore tax returns for organisations ranging from corporate bodies to professional sole proprietorships and partnerships, as well as for expatriate employees, high-net-worth individuals, trusts and estates. We also handle negotiations and correspondence with the Inland Revenue Authority of Singapore (IRAS), including enquiries arising from IRAS audits or investigations.
Our professional team helps clients who set up businesses in Singapore to navigate the tax environment. We also offer guidance to investors venturing into the region, giving advice on how to structure their investments to achieve optimal after-tax returns.
Cross-Border Transactions Services
As part of an international network, FINOVA is well positioned to help clients understand tax ramifications at home and abroad and comply with the tax rules of the relevant countries.
With regards to corporate tax, our services cover the following:
- Corporate tax computation and filing
- Preparation of tax forms for corporate submission
- Preparing Director’s Report
- Preparation of forms C-S/ C for submission
- Corporate tax residency and reliefs
- Payment and refund of Corporate tax
- Employers and employees obligations
- Indirect tax service
- Tax compliance: IRAS enforcement actions on non-filing and late payments, penalties for negligence and evasion
Personal Income Tax Filing Services in Singapore
Singapore Tax adopts a progressive personal tax rates, relative to an individuals amount of income.
Singaporeans whose overseas employment is for a period of at least six months in any calendar year can choose to be treated as a non-resident for the year of assessment following the year of overseas employment. Foreign income received in Singapore is not subject to tax under certain conditions.
When is the personal tax filing due date in Singapore?
It is mandatory under law to file for your annual personal tax returns to IRAS by 15 April of every year. IRAS diligently enforces the requirements relating to the filing of the personal tax. Please comply to avoid paying fines and/or court prosecution.
Income is assessed on a preceding calendar year basis, ending 31 December. You must File Your Annual Tax Form by 15 April of the following year. If tax return is not filed by the 15 April deadline, IRAS may raise estimated assessment. You can usually expect to receive the income tax bills from May to August.
Goods and Services Tax
In a globalised business landscape with fast changing business model and new
international trend for indirect tax, it is vital for companies to be aware and stay on top of GST developments, coupled with foreseeable increase in the GST rate hike in the upcoming years, there is a need to minimise risks and avoid adverse impact on businesses. Risk of non-compliance may give rise to hefty penalties imposed by the tax authorities.
Our GST services include:
• Apply for GST registration/exemption from GST registration or de-registration
• Review and e-ﬁling of GST returns, and assist with the claiming of pre-registration input tax claims
• Assist with replies to GST queries raised by the Inland Revenue of Singapore
• Advice on GST treatment of day-to-day business transactions
• Perform due diligence reviews
• Review and improve GST compliance capabilities through: Assisted Self-Help Kit (ASK) review for voluntary disclosure of errors, Assisted Compliance Assurance Programme (ACAP), GST health check
• Evaluate and assist in the application/renewal for GST relief schemes (e.g. Major Exporter Scheme, Approved Contract Manufacturer & Trader Scheme etc) through ASK review
Property Tax Service in Singapore
Property tax is a kind of wealth tax imposed on property ownership in Singapore, irrespective of whether the property is occupied or vacant. It is applicable to Government-built HDBs and private homes. The government imposes progressive property tax rates in Singapore to encourage home-ownership in the country. These rates are different for owner-occupied and non-owner-occupied homes.
Singapore also enforces an income tax on investment homes – i.e., tax on the income earned from rentals. As such, any profit or the net amount left once you have added together your rental income and deducted any allowable expenses is taxable.
Foreigners in Singapore are also required to pay property tax and tax on rental income. Read our blog on what you should know about property taxes in Singapore for foreigners.
Rental income is taxable when it is due and payable to the landlord of the property (not on the date of actual receipt). Income generated from renting a Singapore property can be subjected to income tax. The property itself will be subjected to property tax. A Singapore tax resident pays resident tax rates on his or her rental income. The term “rental income” refers to the full amount of rent and related payments the property owner receives when they rent out the property. This amount is made up of the rent of the premises, maintenance, furniture, and fittings.
Withholding tax is widely known as tax deduction at source. In Singapore, it is applicable to certain types of payments to non-resident individuals and companies.
Generally, Singapore withholding tax is the tax charged to a non-resident company or individual that derives income from a Singapore source for providing services or carrying out work in Singapore. When payment is made by a Singapore company or individual to a non-resident for services, a certain percentage of that payment is required to be withheld. The withheld amount is to be reported and paid to the Inland Revenue Authority of Singapore (“IRAS”).
Do note that Singapore withholding tax is not applicable to Singapore resident individuals and Singapore resident companies.
Withholding Tax Overview
The applicability of Singapore withholding tax can be determined by the factors below:-
- Applicable only on income sourced in Singapore.
- Applicable to payments made only to non-residents (individuals, companies, professionals, overseas agents etc.)
- Applicable only if the non-resident works or carries out any services in Singapore.
- Only specific payment types (outlined in the Singapore Income Tax Act) are subject to withholding tax.
Withholding Tax for Non-Resident Companies
Specific types of payments that attract withholding tax for non-resident companies:
Interest, commission, fee in connection with any loan or indebtedness
Singapore withholding tax applies when interest is charged on overdue trade accounts and interest on credit terms paid to a non-resident supplier. Payment of withholding tax is also required for any fees as a result of a commission or loan that is paid to a non-resident. Withholding tax rate for such payments is 15%.
Royalty or other payments for the use of or the right to use any movable property
Royalties paid to a non-resident company is subject to withholding tax, either a certain percentage or at the prevailing corporate tax rate. It is also due on payments for exploiting commercial, scientific, technical or industrial knowledge for business activities or hiring a foreign expert to render these skills on your behalf. Withholding tax rate for this type of payment is 10%.
Under certain conditions, in view of the availability of Double Taxation Agreements and whether or not a foreign company has a permanent establishment in Singapore, withholding tax may apply for payments due to foreign entities that provide management services. Withholding tax rate for such payment is the prevailing corporate tax rate.
Singapore withholding tax may have to be charged for hiring a non-resident company to provide services such as installing equipment, technical support, training, consultancy and other work that takes place in Singapore. Payment of withholding tax is only applicable for services rendered physically in Singapore. If services are provided remotely, such as via the Internet, then you do not have to withhold payment for tax purposes as it is considered outside Singapore. Where withholding tax is applicable, the tax rate is the prevailing corporate tax rate.
The rent paid to a non-resident company that leases movable property in Singapore is subject to withholding tax. Withholding tax rate for this type of payment is 15%.
For tax withheld at the prevailing corporate tax rate, non-resident companies are allowed to claim a refund for any expenses incurred by providing certified accounts to the IRAS for consideration.
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