Tax Filing service in Singapore: 3 Things to be Aware of

Having knowledge of when to file your taxes is quite critical, whether you’re an individual or a corporate entity, especially if you want to avoid the pain that comes with paying penalties or dealing with a summons. Engaging a professional firm for tax filing service in Singapore can be of great help as experts are experts in accounting and tax services. They are capable of providing comprehensive insight into how corporate entities and individuals should file their taxes.

Here are some of the things to be aware of regarding tax filing service in Singapore;

Personal Tax

Personal tax in Singapore is a progressive one where the percentage of tax charged depends on the taxable income of the individual. So those with higher annual taxable income are supposed to pay a higher percentage of tax. Those who meet the following criteria are considered liable for tax filing by the Inland Revenue Authority of Singapore (IRAS). 

You are liable for tax filing if you are a citizen and resident of Singapore, apart from temporary absences. You are also liable for filing tax if you are a permanent resident with a permanent home in Singapore. You are also responsible for personal tax filing if you have stayed or worked in Singapore for about 183 days or more within the prior year. 

How to compute tax 

One of the challenges that many people have when it comes to filing tax is in regards to calculating the tax amount. When filing income tax Singapore, it’s important that one be well-versed with some of the available tax reliefs and can benefit from it. Different types of tax relief can be applied; however, knowing them is important. 

Corporate tax

Singapore has put in place a one-tier corporate tax system where a company gets to pay tax based on the chargeable income. Therefore, the corporate tax of a company is calculated based on the company’s net income earned by the company while exercising their business activities within one year. An understanding of the corporate tax process is vital, and that’s why working with experts for tax filing can be of help. 

Here are some of the tax obligations that companies should pay attention to as they plan for tax filing;

• Filing of estimated chargeable income (ECI)
• Filing of goods and services tax 
• Corporate income tax

For estimated chargeable income tax, goods, and services tax, the companies’ deadline depends on their financial end year or the accounting period. For companies to be safe from paying penalties that arise as a result of missed deadlines, they should consider engaging corporate service providers to file tax and other professional services. 

Once you have clarity of the tax filing service in Singapore process and requirements that you should adhere to, working with a tax expert can significantly help in ensuring that unnecessary mistakes are avoided. Different tax requirements are unique to both individual and corporate organizations, and knowing such can be of help.

Originally published by onestop-ca.com