Why You Should Observe Audit and Tax Filing in Singapore
It is a statutory requirement that companies incorporated in Singapore should comply with the applicable tax requirements. The majority of the investors are attracted to the country due to its attractive tax regime and competitive business environment and compliance to tax is a key thing that if not adhered to has the potential of attracting penalties. Engaging a corporate service provider for tax filing in Singapore can be of help especially if compliance is to be ensured.
In order to maintain a vibrant environment for business, certain businesses are required by the government to adhere to audit and compliance regulations. Failure to undertake auditing and file income tax Singapore normally attracts penalties and such can be costly for the companies. Working with a reputable firm that offers tax filing service Singapore can be of great help to a company. Apart from ensuring that the unaudited report is accurately worked on, they also ensure that tax compliance is observed.
The basis of corporate taxation in Singapore is determined by the aspect of residency. Companies are considered as resident entities and liable for corporate tax if they are formed and incorporated in Singapore. All of the income that is derived from Singapore is subject to taxation including foreign income that’s emitted in Singapore. To ensure that your company is observed tax compliance, consider engaging a professional firm that offers tax filing service in Singapore.
The standard rate for corporate tax in Singapore is 17% and there is a tax exemption that’s offered for the first income of S$10,000 AND 50% for S$290,000. The exemptions are subject to a number of conditions and that’s why you should consider engaging in tax filing service in Singapore if you are to maximize the tax benefits. Apart from observing tax compliance, working with experts for tax filing will also help you gain insight into how the percentages apply to your organization.
Companies in Singapore are required to file a given estimate of their income three months prior to the end of their financial year. The tax returns are normally due by November 30 and any form of delay is likely to attract penalties. After carrying out an assessment, the actual tax should be paid within a period of one month. With the help of a tax expert, you may get insight into how to reduce corporate tax in Singapore. The assessment should be done by a reputable audit professional as that helps with ensuring that the financial statements are accurate.
As much as auditing isn’t mandatory for all the businesses, it becomes a requirement when the annual turnover of the company reaches a given amount. Tax returns are normally submitted yearly for individuals; however, for businesses, it’s normally dependent on their accounting period. Failure to submit tax returns as required attracts penalty and such can be avoided if you choose to engage a corporate service provider in Singapore for such professional services. If you want to maximize the tax benefits that the government provides then working with a reputable firm that offers a range of corporate services is important.
Originally published by onestop-ca.com