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.… Continue reading Determining whether you are employed or self-employed
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 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… Continue reading Revenue in the profit and loss statement of a company
Dividends are the share of a company’s available profits that shareholders may receive based on their shareholdings in a company. This can be paid out either in cash or in kind, for example in the form of a company’s shares. In Singapore, shareholders of private resident companies will not be taxed for dividends received on… Continue reading Dividends paid by a Singapore private resident company are tax-exempt
IRAS released this draft e-tax guide on 24 April 2017 which states that it will be implementing GST customer accounting in relation to transactions of prescribed goods that exceeds $5,000 from 1 Jan 2018. What is GST customer accounting? The responsibility for accounting for output tax on the sales of the prescribed goods will shift… Continue reading Customer accounting for GST for prescribed goods
Like businesses, individuals can claim deductions to reduce their taxes too, as follows: Employment expenses such as travel, entertainment, etc that you had incurred with your own money in earning the employment income. Business expense deductions for self-employed individuals, sole proprietors, and partners in a partnership. This group of individuals can deduct expenses such as capital… Continue reading Allowable tax deductions for individuals
With effect from 31 March 2017, a new law was introduced to require companies, foreign companies, and LLPs (unless exempted) in Singapore to maintain a Register of Registrable Controllers. The aim of this law is to make ownership and control of corporate entities more transparent and to reduce opportunities for the misuse of corporate entities… Continue reading Register of registrable controllers
The Account Payable Ageing report provides a quick snapshot of the amount that your business owes to other companies for the supplies of goods and services received. The report should reflect a relatively current amount if the business has been paying its creditors promptly. This means the business is in a healthy cash flow situation… Continue reading Account payable ageing report
The most important document in the GST system is the tax invoice. A correctly issued tax invoice will contain certain information such as details of the registered person and supply, the GST rate, and the amount of GST payable. A tax invoice is essential evidence to: (a) determine the period when a supplier should include his… Continue reading The importance of tax invoice in the GST system
It is important for individuals to know that all income earned in or derived from Singapore is chargeable to income tax in Singapore. As for overseas income received in Singapore on or after 1 Jan 2004, it is generally not taxable in Singapore, except in certain situations. Every Singapore individual resident has to file his tax returns for… Continue reading Taxable and non-taxable income for individuals
