Contract of Service A Contract of Service, as defined by the Ministry of Manpower (MOM), is a formal agreement between an employer and an employee. It provides a crucial foundation for both parties, offering security and protection. Essentially, it functions as an employment contract. For employees, this contract ensures a sense of security as it [...]
Variable Components Monthly Variable Component (MVC) MVC acts as an “emergency lever” component to help employers bring down wage costs in the case of sudden and severe business or economic setbacks to survive and save jobs. MVC forms part of the monthly basic salary and it shall be included in computing overtime payment and CPF [...]
Salary payments are governed by the Employment Act (EA). Hence, an employer may only deduct an employee's salary for reasons allowed under the act. Alternatively, he may also do so if there is a court order. According to the act, authorised deductions can be made for the following reasons: For absence from work (without valid [...]
Payroll-related matters in Singapore are regulated by the Employment Act (EA). The EA is applicable to all employees, regardless of nationality, who work under a contract of service. However, it excludes seamen, domestic workers, and individuals employed by statutory boards and the government. All employees under a contract of service with an employer are covered [...]
In the realm of business, a parent company refers to a corporate entity that possesses or exercises control over one or more other companies, typically by owning more than 50% of their voting rights. A subsidiary, on the other hand, denotes a company that is controlled by another company, usually through ownership of over 50% [...]
A holding company is a legal entity that owns and controls other companies, with the primary operational activities carried out by its subsidiary companies. It is established to mitigate risks for the owners, as their liabilities are limited to the shares or assets associated with the subsidiary held by the holding company. The use of [...]
Base erosion and profit shifting (BEPS) is a term used to describe tax planning strategies employed by multinational enterprises (MNEs) that take advantage of gaps and inconsistencies in tax regulations to avoid paying taxes. Developing countries, which heavily rely on corporate income tax, are disproportionately affected by BEPS. These practices result in annual revenue losses [...]
In general, there are two accounting methods commonly used in business. Cash basis accounting: The first method is cash-based accounting, which is a relatively straightforward approach where transactions are recorded at the time when cash is received or paid. In this method, income is recognized when cash is received, and expenses are recognized when [...]
An Employee Stock Option Plan (ESOP) is an excellent way of letting employees have a share in the company. This will help to give employees a sense of ownership to the company which they are working for. This is also a way to attract and retain talent. These are the main reasons for a company [...]
In accordance with Singapore legislation, every incorporated company must have at least one shareholder. A shareholder is an individual or legal entity that holds an ownership stake in the company. It is not mandatory for a shareholder to be a natural person; it can also be a legal entity. The fundamental requirement is that the [...]