Increase in tax rates for individuals

Starting from Year of Assessment 2017, Singapore’s personal income tax rates for resident taxpayers starts from lowest rate of 2% (for chargeable income $20,001 – $30,000, first $20,000 at 0%) to the highest personal income tax rate at 22% (for chargeable income $320,001 onward). The changes also means that the tax rate for non-resident directors will also increase from… Continue reading Increase in tax rates for individuals

Blocked GST input tax claims

Contrary to popular belief, not all GST input tax incurred can be claim. The following are the expenses that are specifically disallowed to be claimed as input tax: Benefits provided to the family members or relatives of your staff; Costs and running expenses incurred on private motor cars Club subscription fees (including transfer fees) charged by sports… Continue reading Blocked GST input tax claims

Dividend payments made on preference shares

Unlike dividend payments made on ordinary shares,  whether the dividend payments made on preference shares are equity distribution or finance cost depends on the characterisation of the preference shares as a debt or equity instrument.  For this, we need to determine whether it is debt or equity based on its legal form, and not its… Continue reading Dividend payments made on preference shares

Audit exemption for small companies

A new small company concept was introduced in Singapore to exempt small companies from statutory audit requirement. It applies with respect to financial statements for a financial year commencing on or after 1 July 2015. The qualifying criteria are as follows: The entity is a private company The entity must meet at least 2 of 3 quantitative… Continue reading Audit exemption for small companies

Measuring Cost of Sales

Cost of sales refers to the direct costs attributable to the production of the goods or supply of services by an entity. It is also commonly known as the cost of goods sold (COGS) and is a key part of the performance metrics of a company. It is extremely important to determine the correct Cost of Sales. This is so… Continue reading Measuring Cost of Sales

Claiming Foreign Tax Credit for Foreign Income Received in Singapore

Generally, when a Singapore company received income from abroad, it is taxable in Singapore. In most cases, this same income may also be subjected to tax in the foreign country. This will result in double taxation where the same source of income is taxed twice. Fortunately, a Singapore tax resident are allowed to claim a… Continue reading Claiming Foreign Tax Credit for Foreign Income Received in Singapore

Paying GST for importing goods into Singapore

It is common nowadays for individual consumers to buy goods from overseas via their friends or internet websites such as Amazon. Therefore it is important for you to know that your purchases is also subject to GST when you import the goods into Singapore, whether through ordinary mail or courier. The GST amount that you… Continue reading Paying GST for importing goods into Singapore

Determining whether you are employed or self-employed

It is important for individuals to determine whether they are an employee or self-employed. This is because when it comes to taxes, there are significant distinctions between the two. An employed individual works under a contract of service for his employer. In return for his service, the employer will pay a salary to the employee. All… Continue reading Determining whether you are employed or self-employed

Filing XBRL financial statements with ACRA

Since 2007, Singapore incorporated companies are required to file a full set of their financial statements in XBRL format with ACRA.  XBRL (eXtensible Business Reporting Language) – also known as “interactive data” – is a standard used to define and exchange business and financial performance information.  It allows the creation, publication and exchange of entire financial statements.… Continue reading Filing XBRL financial statements with ACRA

Revenue in the profit and loss statement of a company

Revenue refers to the main income source of a business. Generally, it refers to income received or accrued from the provision of services and sale of goods. It is the “top line” figure from which costs of sales and operating expenses are deducted to determine the net profit/loss for a specific period – monthly/quarterly/annually. That said, it should exclude… Continue reading Revenue in the profit and loss statement of a company

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