Income Tax Services Singapore
Overview Of Income Tax Services Singapore For New Companies
You have just incorporated your company in Singapore, which means you probably have an idea how the bureaucracy works. For business-related matters, you head to the Accounting and Corporate Regulatory Authority or ACRA. What about taxation matters? You do realise that you have tax obligations to fulfill too along with your other business duties, right? For income tax services Singapore, you head to IRAS.
Income Tax Services Singapore: The IRAS And YAs
The IRAS or Inland Revenue Authority of Singapore is the agency in charge of stipulating taxes applicable to individuals and businesses deriving their income in Singapore. It is important for new businessmen and entrepreneurs like you to familiarise with the tax rules of IRAS, including the tax rates, reliefs, and other obligations and privileges available for your business type. This is to avoid incurring penalties as well as to fully enjoy the benefits given by Singapore to the business community.
The most basic concept you need to know is the YA or Year of Assessment. Your company income is assessed by the IRAS-based on the preceding year. If, for instance, your financial year end is every December 31, the inclusive period for your YA 2012 is January 1, 2011 to December 31, 2011. Likewise, January 1, 2012 to December 1, 2012 will cover YA 2013.
Income Tax Services Singapore: Tax Rates And Exemptions
Companies in Singapore are taxed a flat rate on their chargeable income. This applies to both foreign and local companies. A tax rate of 17% is currently in effect (and this has been the case since 2010).
Along with this are tax exemptions that companies must also avail of, including the partial tax exemption as well as tax exemption scheme for new startups as well as companies limited by guarantee. The IRAS also grants a one-time five-percent SME Cash Grant for YA 2012 as well as a 20% CIT Rebate or five-percent SME Cash Grant (whichever is higher) for YA 2011.