Comprehensive Taxation Services in Singapore

Navigating the intricate landscape of taxation requires expertise, precision, and a proactive approach. At Koh & Lim Audit PAC, we offer a comprehensive range of taxation services designed to meet the diverse needs of businesses and individuals alike. Our dedicated team of tax professionals is committed to providing exceptional service, ensuring compliance, and maximizing tax efficiency.

Our Singapore Taxation Services

1. Tax Planning and Strategy: Effective tax planning is essential for minimizing tax liabilities and optimizing financial outcomes. We work closely with you to develop strategic tax plans tailored to your specific circumstances. Our proactive approach helps you take advantage of available tax benefits, deductions, and credits, ensuring you pay no more than necessary.
2. Tax Compliance and Filing: Staying compliant with ever-changing tax laws and regulations can be challenging. Our tax compliance services ensure that your tax returns are prepared accurately and filed on time. We handle all aspects of tax compliance, including corporate tax, personal income tax, Goods and Services Tax (GST), and other statutory filings.
3. Corporate Tax Services: Managing corporate taxes effectively is crucial for business success. Our corporate tax services include tax planning, compliance, and advisory services for businesses of all sizes. We help you navigate complex tax regulations, optimize tax positions, and ensure compliance with statutory requirements.
4. Personal Tax Services: We offer comprehensive personal tax services to individuals, including tax planning, preparation, and filing. Whether you are a salaried employee, self-employed, or have complex investment portfolios, we ensure that your personal taxes are managed efficiently and accurately.
5. GST Advisory and Compliance: Goods and Services Tax (GST) compliance is a critical aspect of business operations. Our GST services include advisory, compliance, and audit support to ensure that your business meets all GST requirements. We help you understand GST implications, manage filings, and address any compliance issues.
6. International Taxation: Operating across borders presents unique tax challenges. Our international taxation services help businesses and individuals navigate the complexities of cross-border tax regulations. We provide guidance on transfer pricing, tax treaties, expatriate tax planning, and global tax compliance.
7. Tax Audit Support: Facing a tax audit can be daunting. Our tax audit support services provide you with expert assistance throughout the audit process. We help you prepare documentation, respond to queries from tax authorities, and ensure that the audit is conducted smoothly and efficiently.
8. Estate and Trust Taxation: Proper estate and trust planning can significantly impact your financial legacy. Our estate and trust taxation services include planning, compliance, and advisory services to help you manage and transfer wealth efficiently while minimizing tax liabilities.

Why Choose Koh & Lim Audit PAC?

1. Expertise and Experience: Our team of tax professionals brings extensive knowledge and experience to every engagement. We stay abreast of the latest tax laws and regulations to provide accurate and up-to-date advice.
2. Customized Solutions: We understand that every client has unique tax needs. Our services are tailored to meet your specific requirements, ensuring that you receive personalized and relevant tax solutions.
3. Commitment to Compliance: Compliance is at the heart of our tax services. We ensure that your tax affairs are managed in accordance with all applicable laws and regulations, reducing the risk of penalties and legal issues.
4. Proactive Approach: We adopt a proactive approach to tax planning and compliance, identifying opportunities and potential issues before they arise. This allows us to provide timely advice and implement effective tax strategies.
5. Confidentiality and Integrity: We uphold the highest standards of confidentiality and integrity in all our engagements. You can trust us to handle your tax matters with the utmost care and professionalism.

Benefits of Our Taxation Services

• Tax Efficiency: Optimize your tax positions and minimize liabilities through effective tax planning and strategy.
• Regulatory Compliance: Ensure compliance with all relevant tax laws and regulations, avoiding potential penalties and legal issues.
• Time and Cost Savings: Save time and resources by outsourcing your tax tasks to our experienced professionals, allowing you to focus on your core activities.
• Informed Decision-Making: Access expert tax advice and insights to make informed decisions that enhance your financial outcomes.

At Koh & Lim Audit PAC, we are dedicated to providing top-notch taxation services that support your financial health and success. Contact us today to learn more about how we can help manage your tax needs with precision and professionalism.

 

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Corporate Tax Filing in Singapore

Corporate tax filing in Singapore is a mandatory requirement for all companies operating in the country. It involves the preparation, declaration, and submission of corporate income tax returns to the Inland Revenue Authority of Singapore (IRAS). The process ensures that companies pay taxes on their profits in accordance with Singapore’s Income Tax Act.

1. Understanding Corporate Tax in Singapore

Singapore follows a territorial tax system, meaning companies are taxed on income earned in or derived from Singapore. Foreign-sourced income is generally not taxed unless it is remitted into Singapore.

The corporate tax rate in Singapore is 17%, which is relatively low compared to other jurisdictions, making it an attractive business hub. Additionally, various tax incentives, exemptions, and rebates further reduce the effective tax rate for companies.

2. Key Corporate Tax Filing Requirements

a) Filing of Estimated Chargeable Income (ECI)

All companies (except exempted ones) must file an Estimated Chargeable Income (ECI) within three months after the end of the financial year. The ECI is an estimate of a company’s taxable income before finalizing its tax computation.

b) Filing of Corporate Income Tax Returns

Companies must file their annual Form C-S, Form C-S (Lite), or Form C with IRAS by 30 November of each year.

• Form C-S: For companies with annual revenue of $5 million or below and meeting certain qualifying conditions.
• Form C-S (Lite): A simplified version for companies with revenue $200,000 or below.
• Form C: For companies that do not qualify for Form C-S or Form C-S (Lite).

The corporate tax return provides IRAS with details about a company’s income, deductions, tax exemptions, and credits.

c) Tax Payment Deadline

The corporate tax is due one month after the issuance of the Notice of Assessment (NOA) by IRAS. Companies can choose to pay in GIRO installments if they have enrolled in the scheme.

3. Common Tax Deductions and Exemptions

Singapore offers various tax benefits to reduce the tax burden on businesses, such as:

• Start-Up Tax Exemption (SUTE): Newly incorporated companies enjoy 75% tax exemption on the first $100,000 of chargeable income and 50% on the next $100,000 for the first three years.
• Partial Tax Exemption (PTE): Companies receive 75% exemption on the first $10,000 and 50% on the next $190,000 of chargeable income.
• Corporate Income Tax Rebate: IRAS may provide rebates or reliefs, depending on the government’s budget announcements.

4. Consequences of Late Filing or Non-Compliance

Failure to comply with corporate tax filing obligations can lead to penalties, fines, and even court summons. Common penalties include:

• Late submission of ECI or Form C-S/C: IRAS may issue estimated tax assessments based on prior years’ income.
• Late tax payment: 5% late payment penalty, with an additional 1% per month if unpaid after 60 days.
• Persistent non-compliance: IRAS may take legal action or issue court summons.

5. E-Filing Requirement

Since 2020, all corporate tax submissions must be done electronically through the myTax Portal on the IRAS website. Paper filing is no longer accepted.

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Personal Tax Filing in Singapore

Personal tax filing in Singapore is the process where individuals declare their income and assess their tax obligations with the Inland Revenue Authority of Singapore (IRAS). All individuals earning income in Singapore must determine their tax residency status, file their income tax returns on time, and pay their taxes accordingly.

1. Understanding Personal Income Tax in Singapore

Singapore follows a progressive tax system for individuals, meaning that tax rates increase as income levels rise. The personal income tax rates range from 0% to 24% for tax residents, depending on chargeable income.

Unlike corporate tax, Singapore only taxes income earned in or derived from Singapore. Foreign-sourced income is not taxable unless it is received in Singapore (except in certain cases, such as income received through partnerships).

2. Who Needs to File Personal Tax in Singapore?

a) Tax Residents

An individual is considered a tax resident if they:

• Are a Singapore Citizen or Permanent Resident (PR) residing in Singapore; or
• Are a foreign individual who has stayed or worked in Singapore for at least 183 days in a calendar year.

Tax residents enjoy progressive tax rates and may qualify for various tax reliefs and deductions.

b) Non-Tax Residents

If a foreigner works in Singapore for less than 183 days in a year, they are considered a non-tax resident and are taxed at a flat rate of 15% or the resident tax rate, whichever is higher. Tax reliefs and deductions are generally not applicable to non-residents.

3. Key Steps in Personal Tax Filing

a) Receiving an Income Tax Notice

Every year, IRAS sends a Tax Return or Notice of Filing via email or post to eligible taxpayers between March and April. Some individuals may be under the No-Filing Service (NFS) scheme, where their taxes are automatically assessed based on employer-provided data.

b) Filing Personal Income Tax Returns

Taxpayers must file their Income Tax Return (Form B1 for tax residents, Form M for non-residents) via the IRAS myTax Portal by April 15 (paper filing) or April 18 (e-filing) each year.

Income Sources to Declare Include:

• Employment income (salary, bonuses, allowances, etc.)
• Rental income from properties
• Business or freelance income
• Investment income (certain exemptions apply)

c) Claiming Tax Reliefs and Deductions

Singapore provides numerous tax reliefs that can significantly reduce taxable income. Some common reliefs include:

• Earned Income Relief (for employed individuals)
• CPF Relief (for CPF contributions)
• Parent Relief (for supporting parents)
• Course Fees Relief (for self-improvement courses)
• NSman Relief (for National Service personnel)

Taxpayers should ensure they meet eligibility criteria before claiming these reliefs.

d) Tax Assessment and Payment

After filing, IRAS will issue a Notice of Assessment (NOA) around May to September, indicating the tax payable. The deadline for tax payment is usually one month from the NOA date. Payment can be made via:

• GIRO (installments available)
• Bank transfer, credit card, or PayNow

4. Consequences of Late Filing or Non-Compliance

Failing to file taxes on time can lead to penalties such as:

• Late filing penalty of up to $1,000
• Estimated tax assessments if no return is filed
• Legal action or court summons for repeated non-compliance

5. E-Filing and Simplified Tax Filing

E-filing is mandatory for all individuals from 2023 onwards via the myTax Portal. IRAS also provides a pre-filled tax return option for salaried employees to ease the filing process.

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GST Tax Filing in Singapore: A Complete Guide

Goods and Services Tax (GST) filing in Singapore is a process where GST-registered businesses declare and submit their tax returns to the Inland Revenue Authority of Singapore (IRAS). GST is a value-added tax (VAT) imposed on the supply of goods and services in Singapore and the import of goods into Singapore.

1. Understanding GST in Singapore

a) What is GST?

GST is a consumption tax charged on taxable goods and services supplied in Singapore. It is currently 9% as of 2024 and applies to most transactions, except those that are zero-rated (0%) or exempted.

b) GST-Registered Businesses

A business must register for GST if:

1. Its taxable turnover exceeds S$1 million in the past 12 months (retrospective basis), or
2. It expects its taxable turnover to exceed S$1 million in the next 12 months (prospective basis).

Voluntary registration is also possible for businesses that do not meet the threshold but wish to claim input tax credits.

2. Key GST Filing Requirements

a) Filing GST Returns (Form F5)

GST-registered businesses must file GST returns (Form F5) every quarter or monthly (if approved by IRAS). The filing deadline is one month after the end of each accounting period.

b) Charging and Collecting GST

Businesses must charge 9% GST on taxable supplies and issue GST-compliant invoices to customers.

c) Claiming Input Tax

GST-registered businesses can claim back GST (input tax) on business expenses, provided they meet IRAS’ conditions, such as:

• The expenses were incurred for business purposes.
• The supplier was GST-registered.
• Proper tax invoices were issued.

3. Types of GST Supplies

1. Standard-Rated (9%) – Most goods and services in Singapore.
2. Zero-Rated (0%) – Exported goods and international services.
3. Exempted Supplies – Financial services, residential property leases, and local sales of investment precious metals.
4. Out-of-Scope – Transactions that occur outside Singapore’s jurisdiction.

4. GST Filing Process

Step 1: Prepare GST Return

• Calculate output tax (GST collected from customers).
• Calculate input tax (GST paid on business expenses).
• Determine the net GST payable or GST refund (Output Tax – Input Tax).

Step 2: Submit GST Return (Form F5)

• Businesses must file electronically via the myTax Portal.
• The due date is one month after the end of the GST period.

Step 3: Pay GST or Receive a Refund

• If output tax > input tax, the business pays the balance to IRAS.
• If input tax > output tax, IRAS refunds the difference.

5. Penalties for Late GST Filing

Failure to file GST returns or late payment may result in:

• Late submission penalties of up to S$5,000.
• 5% late payment penalty, increasing by 1% per month if unpaid.
• Prosecution for repeated offenses.