Viewpoints
2019-10-05
In general, a company’s taxable income is not the same as net income (accounting income). The calculation of taxable income for a company begins with net profit/loss in the company’s accounts and then making various adjustments to arrive at the chargeable income subjected to tax during the accounting period. Adjustments are made because some of the expenses incurred by your company may not be deductible for tax purposes. Similarly, some of the income received by your company may not be taxable or it may be taxed separately as a non-trade source income. From net income to taxable income A Singapore company is taxed on its income accruing in or derived from Singapore and income received in Singapore from outside Singapore subject to applicable exemptions and tax reliefs. Income includes: gains or profits from any trade or business income from investment e.g. interest and rental royalties, premiums and any other […]
2019-10-05
Stamp Duty for Sale of Property I’m referring to the IRAS website on Stamp Duty and you’re supposed to pay this tax if: You have purchased an HDB Flat You have purchased a completed property issued with Temporary Occupation Permit You have purchased a property under construction You have purchased a property by way of a sub-sale You have acquired properties an enbloc purchase The Formula Quick Calculation Formula: Stamp Duty = Sale Price x 3% – SGD5,400 However, if the price of the property falls below SGD360,000, this would be inaccurate. Remember we also have to round up to the nearest hundred dollars before calculating. Example: Peter bought a walk up apartment at the price of SGD500,000.00, his stamp duty fees will be [(SGD500,000 x 3%) – $5400] = SGD9,600 The real formula would be, 1% of the first SGD180,000, 2% of the next SGD180,000 and 3% of […]
2019-10-05
General Overview Singapore corporate tax rate is one of the lowest in the Asia Pacific Region. With effect from Year of Assessment 2010 (Basic period ending 2009), the Singapore corporate tax rate will be 17% (prior to YA2010, it was 18%). Singapore tax system is territorial in nature. I.e. Income tax is levied on the net income of companies from sources within Singapore and on foreign source income if remitted into Singapore. Non-resident Singapore companies and businesses are taxed on the same basis. When deriving chargeable income, expenses incurred wholly and exclusively for the generation of the income are deductible against the incomes. Generally, an expense will not be deductible if it is: prohibited under the Income Tax Act; capital in nature; or a contingent liability. There is no capital gain tax in Singapore. With effect from 2002, Singapore has implemented a one-tier corporate tax system. Under this system, the […]
2019-10-05
The establishment of a branch office or a subsidiary company in Singapore are two common options available for foreign companies wishing to establish a business presence here. A Singapore branch office is considered an extension of the foreign company and is not a separate legal entity of its own. This means that the foreign company is responsible for the liability of its Singapore branch office. Additionally, the foreign company can also be sued in Singapore in the case of any dispute. A branch office is also subject to certain compliance requirements, such as the preparation of financial statements and hiring auditors in Singapore to audit its financial statements. In accordance with the Companies Act, the audited financial statements of both the branch and the foreign company must be filed with ACRA. In the case of a local limited liability company, when the company satisfies certain criteria, it can be exempted […]
2019-10-05
Both local and foreign companies (an incorporated subsidiary or registered branch) in Singapore are subject to annual filing requirements from Inland Revenue Authority of Singapore (IRAS) and Accounting and Corporate Regulatory Authority of Singapore (ACRA). ACRA Annual Filing Requirements Each private limited Singapore company must file an annual return with ACRA signed by a director or secretary within one month of its annual general meeting (AGM). The AGM must be held within 18 months from the date of incorporation; subsequent AGMs must be held every calendar year, with interval between each AGM not exceeding 15 months. The directors must table the company’s financial accounts in compliance with Singapore’s Financial Reporting Standards (FRS) framework. Financial accounts consist of Profit and Loss Account and Balance Sheet. Annual Return is separate from a company’s financial accounts. It includes key information about the company’s legal status such as information about directors, secretary, […]
2019-10-05
State and Mandatory Benefits The mandatory Central Provident Fund (CPF) provides a lump sum benefit on death, incapacity, emigration, or at age 55, plus a range of other benefits including house purchase and private medical care. On retirement, a minimum amount of SGD 99,600 (2008) must be used to provide an income (increasing to SGD 120,000 by 2013). The state also provides medical care for residents. Typical New Private Plan Employers can make additional voluntary contributions to the CPF or to an approved savings plan. Employers and employees can also make additional voluntary contributions to a Supplementary Retirement Scheme (SRS), up to a maximum of 11,476 SGD a year. Employers typically provide lump sum death benefits of two to three times earnings, personal accident benefits, disability pensions and private medical insurance. Different levels of benefit may be provided for different categories of employees. Typical Costs Contributions to the Central Provident […]
2019-10-05
A company is a business entity registered under the Singapore Companies Act, Chapter 50. Unlike a business firm such as a sole proprietorship or partnership, it has a legal personality i.e. it has rights to own properties, can sue or be sued. It usually has the words ‘Pte Ltd’ or ‘Ltd’ as part of its name. In many European or the USA, it is commonly known as a Corporation. A private limited company has its own legal identity, separate from its shareholders (who own the company) and its directors (who manage the company). Companies pay corporation tax on their profits; Shareholders receive dividends which are tax free under the Singapore new one tier tax system and directors pay income tax as employee’s officers on any remuneration paid. One of the major advantages of a limited company is that the shareholders are not liable for the company’s debts beyond the amount […]
2019-10-05
Types of Taiwan Visas In terms of Taiwan Statute Governing Issuance of ROC Visas in Foreign Passports, there are four types of visa that may be issued in foreign passports, namely: 1. Visitor’s Visa There are four main types of visitor visa, namely: 1. two weeks – intended for short stays only, no extension allowed; 2. one month – intended for short stays only, no extension allowed; 3. sixty-days – can be extended for legitimate reasons unless bear the words “No extension will be granted” and 4. ninety-days – can be extended for legitimate reasons. A maximum of two extensions for 90 and 120 days may be obtained from any city/county police headquarters in Taiwan. 2. Landing VISA May be issued to the holders of USA passport, Hungary, Poland and Slovak, which the duration is for 30 days starting from the day after arrival and is not extendable nor be […]
2019-10-05
1. Report to Department of Commerce, MOEA of registration particulars of foreign head office and establishment of representative office Documents required: (1) Application form (2) Certificate of incorporation issued by the government authority (authenticated by the representative of the Taiwan government in the country where the foreign head office is resident) and Chinese translation (3) Business registration certificate (for Hong Kong companies only) (authenticated by the representative of the Taiwan government in the country where the foreign head office is resident) and Chinese translation (4) Power of attorney appointing the legal representative in Taiwan (authenticated by the representative of the Taiwan government in Hong Kong) and Chinese translation (5) Photocopy of the ID card of the litigation / non-litigation agent in Taiwan (if a Taiwan national) (6) Photocopy of the passport of the litigation / non-litigation agent in Taiwan (if a foreign national) (7) Photocopy of Hong Kong permanent ID […]
2019-10-05
1. Application to Department of Commerce, MOEA to reserve a Chinese company name General information required: Application for Reservation of Corporate Name and Business Scope (Chinese name of the proposed company and type of organization, applicant’s name, chop, passport or ID card number and residence address) Note: The applicant should be one of the incorporators 2. Application to Investment Commission of MOEA, SPA or EPZA (based on location of the invested company) for approval of foreign investors General information required: (1) Application form (2) Amount of foreign investment to be contributed in cash (3) Composition of total capital investment (4) Documents required from the foreign investor: (a) Photocopy of Certificate of Incorporation or passport (authenticated by the representative of the Taiwan government in the country where the foreign company is resident) (b) Power of Attorney appointing an ROC individual as attorney-in-fact to file the application (authenticated by the representative […]