Goods and Service Tax (GST), similar to the Value Added Tax (VAT) in many countries, is a consumption tax on most domestic goods and services. Singapore’s GST is currently at 7%.
GST is exempted for the sale and lease of residential properties and most financial services. Export of goods and international services are not subject to GST. GST is collected by suppliers of domestic goods and services who are registered with the Comptroller of GST. For the import of goods, GST is collected by Singapore Customs at the point of importation into Singapore.
A supplier of goods and/or services, whose annual revenue exceeds or is likely to exceed S$1 million, is required to register with the Comptroller of GST. A supplier, whose revenue does not exceed S$1 million may voluntarily register with the Comptroller if it is beneficial to the business. The approval of such registrations is at the discretion of the Comptroller. Once voluntarily registered, the supplier must comply with the regulatory requirements and stay registered for a minimum of 2 years.
- ECI is an estimate of the company’s taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA).
- All companies including new companies are required to file ECI within three months from the end of their financial year except for companies that qualify for the administrative concession and those that are specifically not required to file.
It depends. It is always good advice to come and meet your professional consultants.
- Singapore’s personal income tax rates for resident taxpayers are progressive. This means higher income earners pay a proportionately higher tax.
- For YA 2012 to 2016, you are required to pay tax at rate of 20% if your personal taxable income is above S$320,000. For taxation income below S$20,000, you are not required to pay tax.
- Unless you exercise short term employment for less than 60 days, then you are exempt from paying tax. However, this rule does not apply if you are a director of a company, a public entertainer or a professional in Singapore.
Come talk to us on legitimate tax planning for individuals as well as corporate.
COMPANY INCORPORATION SERVICES
- must have at least one director who is ordinarily resident in Singapore who is either a Singapore citizen, or Singapore Permanent Resident, or a foreigner holding a EntrePass
- Must have at least two directors if the one setting up the Company is a foreigner director residing overseas and he/she must have one local resident director
- With effect from 1 March 2009, any person aged 18 years and above may be appointed as a director.
- Every company must appoint a secretary within 6 months of the date of its incorporation.
- The company secretary must be residing locally in Singapore.
- The company secretary must not be the sole director of the company.
- A company shall appoint an auditor within 3 months from the date of its incorporation, unless it is exempted from audit requirements under Section 205B, or 205C, of the Companies Act.
- The proposed new company name is available and the new company name must meet certain criteria set out by ACRA
- You need to identify a business address in Singapore.
- If you wish to use home address as business address, you are advised to check with respective authority.
- P.O. Box address can not be used as business address
- For a company, the registered office in Singapore must be operational and accessible to the public during normal office hours.
- You will need to access to SingPass to incorporate a company in Singapore IF you are setting it up on your own.
- A foreign must engage a professional corporate service provider to assist them to incorporate their new company. They may or may not need to be present for the incorporation process.
A company may be 100% owned subject to the following:
- A foreigner owner who is residing outside of Singapore must appoint a locally resident manager to manage the business whilst he continues to reside outside Singapore.
- A foreigner who hold valid EntrePass
The incorporation process could takes from 1 days to 2 months. It is advisable to approach a professional corporate service provider like us to assist you to incorporate a new company.
CORPORATE SECRETARIAL SERVICES
the secretary must be an individual whose principal place of residence is in Singapore.
All companies must have at least one secretary (but there can be more) and the office of secretary cannot be left vacant for more than 6 months at any one time.
The directors must reasonably ensure that the secretary is a person who appears to them “to have the requisite knowledge and experience to discharge the functions of secretary of a company”.
Firstly, the Companies Act requires that every company shall keep such accounting and other records as will sufficiently explain the transactions and financial position of the company and enable true and fair financial statements and any documents required to be attached thereto to be prepared from time to time, and shall cause those records to be kept in such manner as to enable them to be conveniently and properly audited.
Secondly, the Companies Act requires that If accounting and other records are kept by the company at a place outside Singapore there shall be sent to and kept at a place in Singapore and be at all times open to inspection by the directors such statements and returns with respect to the business dealt with in the records so kept as will enable to be prepared true and fair financial statements and any documents required to be attached thereto.
Come meet us to discuss the above issue further.
Unless the company is exempted from audit requirements under the Companies Act to be exempted from the requirement to appoint an auditor of the company, then the Company must appoint a company auditor.
For companies for financial years commencing before 1 Jul 2015, only exempt private companies are exempt from audit requirements if the following criteria are met:
i) the starting date of its financial year is between 15 May 2003 and 31 May 2004 and its turnover for that financial year does not exceed $2.5 million.
ii) For financial years starting 1 Jun 2004, the turnover is $5 million.
If your company’s financial year commencing on and after 1 Jul 2015, and if it complies with the definition of a small company and a small group.
A small company is defined as follows:
(1) it is a private company in the financial year in question; and
(2) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:
(a) total annual revenue less than or equal to $10m;
(b) total assets less than or equal to $10m;
(c) no. of employees less than or equal to 50.
A small group is defined as follows:
For a company which is part of a group:
(1) the company must qualify as a small company; and
(2) entire group must be a “small group”
to qualify to the audit exemption.
For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.
Overtime is not compulsory. But if you have shift workers, they may need to work overtime.
A worker shall not work more than 12 hours in a day unless it is due to certain circumstances.
No CPF contributions are required for such notice pay.
The worker must work for at least 3 months to be qualified for annual leave.
Overtime is not compulsory, employee should not be compelled to work overtime unless it meet the definition of an emergency under the Employment Act.