5 Tips for small business taxes in Singapore

bookkeeping services in Singapore
Being a small business owner is not as easy as it may sound. You have to wear many hats and be responsible for every aspect of the business. This can be overwhelming and stressful at times.

There are several things that you need to get right in order to have a successful small business. Accounting and taxation are one of the most important aspects of running a small business. 

 

If you don’t have a handle on your finances, it can be very difficult to keep your business afloat. That’s why it’s so important to make sure that you hire a tax consultant in Singapore who can help you keep track of your finances and make sure that you’re paying your taxes on time.

In this blog post, however, we have shared 7 tips for small business taxes in Singapore.

#1 Keep proper records

Keeping proper records is the most effective way to manage small business taxes in Singapore. This is because good recordkeeping provides an up-to-date and accurate picture of a business’s financial transactions. 

 

This information is crucial when it comes time to file taxes, as it ensures that businesses only pay taxes on their actual income.

 

Additionally, good records can help businesses claim tax deductions and credits that they may be entitled to. Therefore, taking the time to keep good records throughout the year can save businesses a significant amount of money come tax time.

 

Consult a tax agent in Singapore to know more about how to keep records properly.

 

Recommended post: 6 Benefits of Hiring a Tax Advisor or Tax Agent in Singapore

#2 Keep business & personal expenses separate

One of the best taxation practices for small businesses in Singapore is to keep business and personal expenses separate. This ensures that all business expenses are properly accounted for and can be deducted from taxable income. 


Additionally, it provides clarity on how business funds are being used and can help to prevent personal funds from being used for business purposes.


Even when you hire an accountant or a tax agent in Singapore, they would also suggest you keep business & personal expenses separate.

#3 Manage payroll

Managing payroll is another important task to do for small business taxation. This includes ensuring that employees are paid correctly and on time, as well as keeping track of vacation and sick days. 


Payroll can be a complex and time-consuming process, so it’s important to have a system in place that works for your business.


If you don’t have time to manage the payroll of your company, you can consider hiring an accounting firm in Singapore that can provide you with reliable accounting & payroll services.

#4 Take advantage of rebates

There are many rebates and grants available to help reduce your tax liability in Singapore. Depending on your circumstances, you may be eligible for certain rebates and grants. 

 

For example, there is a CPF Housing Grant that helps with the purchase of an HDB flat, as well as a Foreign Maid Levy Rebate for families who employ foreign domestic workers.

 

There are also many other rebates and grants available, so it is worth doing some research to see if you are eligible for any of them.

 

If you are a small business owner in Singapore, you must hire a professional & experience accountant who can advise you to get appropriate grants and reduce your tax liability.

 

Recommended post: 10 Tax Deductions Every Singaporean Should Know About

Hire A Professional Tax Agent

The best way to do taxation for small businesses in Singapore is to hire a professional tax agent who can not only take care of your tax computing and filing but can also suggest how to get the maximum benefits for your business taxes. 


This will ensure that your business is getting the most out of its taxes, and will help to minimize any penalties or fees that may be incurred.

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ACRA Cancels Registration of Filing Agent and Qualified Individual for AML/CFT Breaches

The Accounting and Corporate Regulatory Authority (ACRA) had cancelled the registrations of filing agent (RFA) and qualified individual (RQI) on 18 January 2024. The registrations were cancelled in view of breaches of anti-money laundering and countering the financing of terrorism (AML/CFT) controls under the ACRA (Filing Agents and Qualified Individuals) Regulations 2015 (the “ACRA Regulations”).

Some of the basic AMT/CFT controls that a RFA and RQI are required to exercise are as follows:

(a) perform additional customer due diligence measures when a customer is not physically present during onboarding;

(b) inquiring if there exists any beneficial owner in relation to some of its customers; and

(c) perform risk assessments i

RQIs and RFAs provide corporate secretarial services for business entities, such as helping customers to incorporate companies, file annual returns and fulfil other filing requirements under the Companies Act 1967 or other Acts under ACRA’s purview. RQIs and RFAs are required to perform customer due diligence measures in accordance with the ACRA Regulations, and conduct their business in such a manner as to guard against the facilitation of money laundering and the financing of terrorism. RQIs and RFAs must also satisfy statutory requirements such as being fit and proper persons, to be registered or continue to be registered.

RQIs and RFAs who breach their statutory obligations may be subject to enforcement actions, such as financial penalties of up to $10,000 or $25,000 per breach respectively or have their registrations with ACRA suspended or cancelled.

Therefore, RQIs and RFAs play an important role in helping to detect and combat illicit activities.

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