If a Singapore company fails to file its corporate taxes on time, it may face a range of penalties imposed by the Inland Revenue Authority of Singapore (IRAS), including: Late Filing Fees: IRAS may impose a late filing fee for failing to file corporate tax returns by the due date (usually November 30 each year). [...]
Moving forward, GST-registered businesses will need to be on InvoiceNow solutions to send invoice data to IRAS for tax administration. The requirement will be rolled out progressively in phases. Here are the timeframes for the implementation. From 1 November 2025, newly incorporated companies that voluntarily register for GST will need to be on an InvoiceNow [...]
Recently we have had a few clients coming to us to tell us that since their company receives income from overseas and their goods do not come into Singapore, the income that the company earns does not attract income tax in Singapore. When I ask them for where they get this information, they bring me [...]
Foreign income refers to earnings generated from outside Singapore. Typically, this income is subject to taxation in Singapore when it is remitted and received in the country. If the foreign income is generated from a trade or business conducted in Singapore, it is taxable upon accrual, regardless of whether it is physically received in Singapore. [...]
Tax arbitrage involves exploiting discrepancies in the taxation of different types of income, capital gains, and transactions to generate profit. The intricacies of various countries' tax codes enable individuals and businesses to identify legal loopholes or restructure transactions to minimize tax liabilities. This in essence is tax planning to minimise the amount of tax an [...]
Reducing the amount of corporate taxes your company pays in Singapore can be achieved through various legitimate strategies and tax planning techniques. Here are some effective ways to optimize your tax liabilities: Utilize Tax Incentives and Exemptions: Singapore offers several tax incentives and exemptions to encourage business growth and investment. Take advantage of schemes such [...]
Section 2 of the Income Tax Act defines "person" as a company and body of persons. It further states that body of persons does not include partnerships. For simplicity's sake, you can treat a person in the act as a natural person as it would help make understanding easier but remember that a person under [...]
Statutory, assessable and chargeable income are 3 different definitions. Taxpayers need to know the difference between the 3 of them. Tax payable is only calculated on chargeable income. Statutory Income refers to all income (net of deductible expenses) less capital allowances. Statutory income = All income (net deductible expenses) - capital allowances Assessable [...]
The powers of the Comptroller of Income Tax are stated in the Income Tax Act 1947. These are some of the powers that are stated in the Income Tax Act: Requiring taxpayers to file taxes (section 62 of the Income Tax Act) Requiring any person to furnish further returns (section 64 of the Income [...]
In Singapore, companies are allowed to carry forward Unutilised Items subject to conditions being met. What are Unutilised Items? A company may utilise capital allowances, tax deductions or donations to offset against its income. For example, donations to an Institute of Public Character (IPC) will attract 250% allowable tax deductions. Therefore, if a company [...]