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New Singapore Company Incorporation Guide to Save on Taxes is Published by SBS Consulting
New Singapore Company Incorporation Guide to Save on Taxes is Published by SBS Consulting
SBS Consulting has come up with a new guide for newbie owners on Singapore company registration. SBS is a trusted firm for Singapore company incorporation services. The guide details on how, the underlying business structure can undermine or elevate the chances of making it big for a business owner.
Singapore,
Singapore,
Singapore
(pr4links.com)
18/11/2014
"In their hurry, newbie entrepreneurs do not realize that businesses need to pay taxes on their generated income. And one must plan for it, even before filling up an application to set up a company in Singapore. "
“The business structure chosen for Singapore company incorporation may have an adverse impact on a business’s future growth, if it cannot keep up with the growth of business,” said Ms. Meena, the business head of SBS Consulting.
Difference in Taxation for Sole Proprietorships, Limited liability Partnerships and Companies Limited by Shares:
1) Taxation for Sole Proprietorships and Limited liability Partnerships
The entrepreneurs failing to choose a proper business structure are asking for a big headache. They may have to close it in the future and restart it using a more flexible and suitable business structure. Generally, self-employed individuals opt to form their own sole proprietorship or a partnership, when they can find other persons on the wavelength, matching their own.
Sole proprietorships and partnerships do not have legal existence and their income is considered as the personal income of their owners. They have to pay personal income tax on it, which max out at 20% of the taxable income. The properties purchased for the business are in the name of the owner. The owner is also liable to pay the debts of the business. The owner’s personal property is pledged for it. These firms are not eligible for the tax benefits, exemptions and schemes available for the Singapore resident companies.
2) Taxation for Private Limited Companies and Exempt Private Companies
An entrepreneur opting for the Singapore company registration, from the view of long term planning, can use business structure that supports Private Limited Companies (PLC) and Exempt Private Companies (EPC). Both of these companies are limited by shares and they are owned by their shareholders. These companies have their own legal existence, separate from their owners. They can act as natural persons and buy properties in their own name. They have to pay corporate income tax, which max out at 17% of taxable income. Only Singapore resident companies qualify for incentive, tax rebates and exemptions that are offered by the Singapore authorities in various situations.
There is a Tax Exemption Scheme for Start-up Singapore companies. Under this scheme, initial amount of S$100,000 of their taxable income is charged at 0% and the next, S$200,000 are charged at 8.5%. The taxable income more than S$300,000 is charged at 17%. In addition, there is Corporate Income Tax (CIT) Rebate scheme that offers 30% tax rebate. For existing companies, benefits are offered under the Partial Tax Exemption for Companies scheme. Foreign tax credit, unilateral tax credit, double tax relief are a few other tax benefits that a Singapore resident company qualifies for,” said a knowledgeable tax accountant at SBS Consulting.
Singapore tax services help their Singapore clients to accurately calculate and pay their taxes. The tax accountants working for these firms try to cash on all the benefits that their client can claim, to minimize the tax amount that their client must pay at the time of Singapore tax filing. The effective tax paid by the resident Singapore companies is close to 9%.
The Singapore tax services also help their client with the Singapore GST registration, if the client meets certain conditions. After the GST registration, the firm or the business has to collect 7% of GST (Goods and Service Tax) from its customers and remit it to the Inland Revenue Authority of Singapore (IRAS) at the time of GST filing. The benefit to the GST registered companies is that they can claim a refund on their own input tax and can further reduce their tax amount.
About SBS Consulting:
SBS Consulting offers business services to Singaporean as well as multinational businesses. This Singapore based firm, established in 2010, in addition to incorporation services, also offers corporate secretarial, bookkeeping, accounting, auditing, payroll processing, GST filing, XBRL filing, and immigration visas and passes related services to its clients.
About
SBS Consulting offers leading company registration and corporate services in Singapore. The business offerings include accounting services, taxation, auditing, payroll, corporate secretarial services and Singapore work visa services. Our full ranges of innovative corporate solutions let you stay ahead of the competitors.
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