Singapore Corporate Tax System
Singapore - a global city popular for its traits of trust, knowledge, advanced
technology, established economy and competitive tax rates. It is also a world-class
city, where entrepreneurs prefer to conduct business or invest.
Rikvin, leading corporate solutions provider in Singapore discusses one of the traits
of Singapore, its reasonable, competitive and business-friendly tax rates.
“There are favorable tax benefits to be considered a tax resident by the Inland
Revenue Authority of Singapore (IRAS),” Rikvin said.
“A company is considered as resident in Singapore if the control and management of
the business is exercised in Singapore. Although the term "control and management"
is not defined explicitly by authorities, a generally accepted consensus is that it
refers to the policy level decision making at the level of Board of Directors and not
the day-to-day decision making and operations,” Rikvin continues.
Rikvin also highlighted that the Singapore government has declared a full tax
exemption for newly incorporated companies in order to encourage local
entrepreneurship provided they qualify for the following conditions: it is
incorporated in Singapore, it is a tax resident of Singapore, it has no more than 20
shareholders throughout the basis period relating to that year of assessment, and all
its shareholders are individuals.
Finally, Rikvin also discussed the common mistakes made by corporate taxpayers
including: understatement of income - Businesses should properly account for all the
earnings and invoices issued for goods sold or services rendered. Omission of
particular receipts or invoices issued amounts to an understatement of income,
which is an offence; and claiming deductions for non-deductible expenses - Expenses
not incurred for the business such as directors’ private expenses on entertainment,
vacation and personal purposes. Businesses should segregate private expenses and
exclude them from their claims.
About the Publisher:
Rikvin services team consists of a group of professionals who have in depth
knowledge and extensive experience in incorporation, legal, financial, Singapore GST
service, Singapore subsidiary registration, Singapore payroll service, Singapore
corporate tax and corporate and regulatory frameworks. They guide you through
every step, respond promptly, and closely follow your application progress to ensure
that your case is presented in the best possible manner that it deserves.
We have been assisting clients from all over the globe incorporate a Singapore
company. Our success rate is phenomenal, and almost all of our enterprise clients
have entrusted us, with the routine management tasks such as bookkeeping and
secretarial services and we continue to impress them beyond our promise.
Rikvin PTE LTD
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Main Lines: (65) 6438 8887
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