Every
company and individual in a country are responsible to do certain duties to the
nation. One of them is to pay taxes on time. The main revenue for any country
comes from taxes. Unless the citizens pay their taxes, it will be impossible
for the government to provide the facilities that people enjoy.
There are various kinds of taxes a
company has to pay. They will have to take care of the taxes of the company as
well as its employees. A good tax consultant is essential for the companies to
correctly compute the tax and file the returns on time. This will save them a
lot of time and keep them legally compliant.
Different Types of Taxes a Company
Must Pay
The
Singapore corporate tax structure is
simple and very low. The tax rates in Singapore are some of the lowest in the
world. This is another advantage that companies see when they set up operations
here. There is a one-tier corporate tax system in Singapore. The stakeholders
are not separately taxed. The tax paid by the company on the taxable income is
the only tax to be paid. This is the final tax.
The tax is calculated on the
taxable income. This income is the total income of the company for the
financial year less the expenses that are permitted to be reduced. Companies
can also reduce other permitted allowances from the income to calculate the
taxable income. Singapore doesn't tax its residents for capital gains like
proceeds from the sale of assets, foreign exchange on the sale of capital
goods, etc.
There are tax exemptions allowed
for startups. A new company with 20 or fewer shareholders qualifies for this.
Each shareholder must hold at least 10% of the issued shares. This tax
exemption is not allowed for property or investment holding companies. For
other companies too, there are partial tax exemptions.
Tax Services
Offered By Corporate Consultants
Every the company must pay income tax in Singapore.
The corporate consultants can help you in computing and planning the tax. The
amount of tax to be paid has a great implication on your financial planning.
So, it is essential to get an expert to plan the taxes properly. They will help
you with understanding your tax burden and also the rebates which are available
to you.
Individuals must pay their taxes
too. The personal income tax rate in
Singapore is low. The tax rate will depend on your income. There are no capital
gains or inheritance tax in Singapore. Those citizens of Singapore employed
abroad will not have to pay any income tax.
Singapore income tax
In
the world of business, now people have more options for single products and
now people are more aware of the products and their company and industry has
become a place of competition where companies have to think about new ideas and
new execution plans to run the business as competition has become the cutthroat
competition and if the company would not run in a pace of their competitor
companies they would have to get out of the market as now people want more
efficient and affordable items and that is why it is important to have a proper team who can manage all these things and that is why running a successful
business is not a child's play and the companies owners and management of the
companies have to think about how to capture more number of customers so that
they can have more customers and they can become one of the best company in the
industry. many of the people who start their business or about to start their
business don't have many ideas about how would they run a successful company
like there are many who starts doing the business without registering their
business with the government and when that happens the government impose heavy fine
on it and due to the lack of the knowledge of business acts companies have to
suffer the loss. The one thing which many companies does not follow properly is
the filling of Singapore income tax and because of this they have to face loses in the
market and we understand that many of you would think that how can a business
would be in loss if they don’t file income tax and we would make you understand
how this works in the below paragraph.
How can filling income tax make a
company successful?
Penalties
- as we have discussed in the above
articles that there are many companies who do not file up their income tax in the correct manner or sometimes they don't even file the income tax become
sometimes they don't have the proper knowledge or sometimes people don't want to
give the part of the money to the government and tax is the right of every
government and when the government officials find out that any company is not
filling up their income taxes properly they penalize that company or
organization and impose a heavy fine on that company and because of this the company have to bear the loss which becomes an obstacle for the company to
become successful.
Clients
- there are many times that some
companies take a good start in the market and they work hard to make more and
more clients so that the clients would invest in the company and that is why
companies work hard but when the companies do not pay their taxes government
officials to impose a penalty as we have discussed earlier but one thing which
companies also have to bear and that is the ruining their image in the market
and their clients might lose their hand and don’t invest more in that company
and because of this companies would not become successful but if the companies
have filed all their taxes clients have more trust in them.
Singapore employment pass
This
is one of the permits which one has to take from the government of Singapore to
work in a company legally or otherwise Singapore government would deport that
one in their country back. You should be must Singapore employment pass it's very important to all perspectives.
