A company can return excess capital it might have to its shareholders through dividends, share capital reduction or share buybacks. In this article, we will be focusing on share buybacks, namely for private companies in Singapore. A share buyback is exactly what it says. A company is buying back its own shares. Instead of the [...]
Introduction A share split is also commonly referred to as a stock split. It is usually done for commercial reasons. Usually, when the price of a share is restrictively high, the company may decide to break up or split that share into multiple smaller shares. For example, instead of 1 share being priced at $100, [...]
Share Capital is the amount of money that the shareholders have committed to the company in exchange for shares. For example, if the shareholders have committed that they will invest $10,000 into the company in exchange for 10,000 ordinary shares, then the share capital of the company is $10,000 for 10,000 ordinary shares. Paid Up [...]
Brief introduction: To better understand the advantages and disadvantages, we will need to first understand what convertible notes really are and then we can better appreciate their usage. We have a previous article posted here: What is a convertible note?. This article spells out the usual steps a company may take to issue a convertible [...]
Do note that the information in this article is accurate as of the date of publishing. As a general guide, CPF contributions are required for full-time, part-time, casual and temporary employees who are: Singapore citizens or permanent residents Engaged under a contract of service (i.e. an employment contract as opposed to a contract for service) [...]
There are 4 main types of CPF contributions. Some are taxable and some are not. Compulsory CPF Contributions relating to employment in Singapore. [Not taxable] This refers to the CPF contributions that the employer will make to the employee's CPF account when typically issuing monthly salary. Example: Employee's salary: $3000 Employee's age: below 55 years [...]
As a starting point, in Singapore, investment gains are not taxable. Hence, if an individual or a business entity like a company sells a property, shares or other financial instruments, the possible profits that are received are not subject to tax. According to IRAS, the following gains are generally not taxable: Gains that are [...]
The SGD$500 million Jobs and Business Support Package announced during Budget 2022 consists of two schemes, namely the Small Business Recovery Grant and the Jobs Growth Incentive. These schemes provide targeted help for workers and businesses in segments of the economy that are facing slower recoveries. In this article, we will be focusing on the [...]
Every year, the finance minister will lay out plans to help businesses during his budget speech. As Singapore moves out of the pandemic phase of dealing with Covid-19 to treating the virus as endemic, businesses should start to pick up. However, there will still be some segments of the economy that are still reeling from [...]
The Skills Development Levy (SDL) is a mandatory levy that all employers will have to pay to their employees working in Singapore. The SDL is paid to the CPF Board who will then place the monies into the Skills Development Fund. This fund is managed by SkillsFuture Singapore (SSG). The monies are used to support [...]