So from our last blog post, you learnt why it is important to engage professional company secretarial services in Singapore after you have incorporated your company.
Moving forward, it is imperative that you understand the importance of taxes in Singapore and how it affects your business. Do you know that there are tax exemptions for newly incorporated companies in Singapore? Read on to find out more.
(If you have just chanced upon this post because you are looking for corporate secretarial services in Singapore, check out this link to help you out.)
WHAT YOU NEED TO KNOW ABOUT TAXES IN SINGAPORE
If you ever want to know all about taxes in Singapore, you can visit the IRAS (Inland Revenue Authority of Singapore) website and learn all about it.
But if you just wanna find out what you need to know to keep your business thriving, the most important tax you need to make an effort to know and understand is the Income Tax.
According to IRAS, “Income tax is chargeable on income of individuals and companies”. For each assessment year since 2010, companies are charged 17% for income tax on their annual income.
Afraid that the 17% is going to take a huge chunk of funds from your new company?
GREAT NEWS FOR START-UPS!
Jump for joy! In 2005, IRAS introduced the tax exemption scheme for new start-up companies “to support entrepreneurship and help local enterprises grow”.
Newly incorporated companies in Singapore “that meets the qualifying conditions” are able to “claim for full tax exemption on the first $100,000 of normal chargeable income* for each of its first three consecutive Year of Assessments”.
Want more? Here’s more from IRAS, “From YA 2008, a further 50% exemption is given on the next $200,000 of the normal chargeable income* for each of the first three consecutive YAs.”
*YAs mean Years of Assessment.
However, do take note of the latest update on this tax exemption scheme for new start-up companies. It “will not be extended will not be extended to investment holding companies and companies engaged in property development activities that are incorporated after 25 Feb 2013. These companies will still enjoy the partial tax exemption.”
If you want specific details on this tax exemption scheme for newly incorporated companies in Singapore, you can visit IRAS here.
WHAT YOU NEED TO KNOW ABOUT CORPORATE TAX
Do I enjoy tax deduction for my company’s motor vehicle expenses? Private hire? How about medical expenses? R&D? How about expenses incurred prior to the commencement of my business? Is my dividend income taxable?
If you have a million and one questions on tax rebates and taxable expenses, you can always turn to the handy IRAS website for help. For starters, you can get most of your answers at askIRAS. Simply select the second category – Corporate Tax, and you will see the Top 10 FAQs for Corporate Tax.
For a more detailed answer, you can always drop IRAS a question and know that they will respond.
LATEST UPDATES ON THE 2013 SINGAPORE BUDGET
It’s always great to know what’s the latest change at IRAS because a) it may directly impact you and your business, and b) it’s always good to know.
Find out the latest tax changes and, yes, grants that can aid you and your business here.
NOW I KNOW MY TAXES, BUT I DON’T KNOW HOW TO FILE THEM
Let me admit one thing. Learning about taxes is definitely way easier than filing them. There are just too much red tape and guidelines for you to comply.
To begin with, you are already so busy with your business, and now when you receive official letters from IRAS reminding you to do your annual filing, you need to race against time. From getting your accounts in place, to filling in forms, and applying for waivers, it can be overwhelming.
Which is why sometimes it is just more cost-effective and time-efficient to engage a professional to sort it all out for you while you continue to keep your business going.
GOING BONKERS WITH TAX FILING?
Don’t stress out. We’re here to help. For starters, have a look at the Tax Advisory Services we provide as well as the fee for our services for you to make a well-informed decision. If you’re still not too sure, fill in the form below with your enquiry and we will get back to you the soonest.