The income tax systems in the UK and Singapore differ significantly in structure, rates, and philosophy. Here is a detailed comparison of the resident income tax rates between the two countries: United Kingdom The UK uses a progressive income tax system, where tax rates increase with higher income levels. For the tax year 2023/24, the [...]
Incorporating a company in Singapore offers several benefits over registering a sole proprietorship: Limited Liability: One of the primary advantages of incorporating a company is limited liability protection. Shareholders of a company are typically not personally liable for the company's debts and liabilities beyond their investment in the company. This means that personal assets are [...]
Determining the "best" place in Southeast Asia to do business depends on various factors including the nature of the business, industry specifics, target markets, and the preferences of the business owners. However, several Southeast Asian countries stand out as particularly attractive destinations for business: Singapore: Singapore is often considered one of the best places to [...]
Determining whether Singapore or Dubai is a better place to do business depends on various factors, including the nature of the business, industry specifics, target markets, and the preferences of the business owners. Both Singapore and Dubai have their unique advantages and considerations: Singapore: Strategic Location: Singapore is situated in the heart of Southeast Asia, [...]
Setting up a Special Purpose Vehicle (SPV) in Singapore can offer several benefits: Tax Efficiency: Singapore has a favourable tax regime for businesses. Income generated by an SPV may be subject to lower tax rates or may even be exempt from certain taxes, especially if the SPV is used for specific purposes like holding investments [...]
In Singapore, companies are afforded the flexibility to designate their fiscal year-end according to their specific business requirements. This can involve aligning it with various factors such as the calendar year, financial quarter-end dates, the anniversary of incorporation, seasonal patterns, or specific business cycles. Understanding the Fiscal Year The fiscal year, also referred to as [...]
Section 2 of the Income Tax Act defines "person" as a company and body of persons. It further states that body of persons does not include partnerships. For simplicity's sake, you can treat a person in the act as a natural person as it would help make understanding easier but remember that a person under [...]
Statutory, assessable and chargeable income are 3 different definitions. Taxpayers need to know the difference between the 3 of them. Tax payable is only calculated on chargeable income. Statutory Income refers to all income (net of deductible expenses) less capital allowances. Statutory income = All income (net deductible expenses) - capital allowances Assessable [...]
The powers of the Comptroller of Income Tax are stated in the Income Tax Act 1947. These are some of the powers that are stated in the Income Tax Act: Requiring taxpayers to file taxes (section 62 of the Income Tax Act) Requiring any person to furnish further returns (section 64 of the Income [...]
In Singapore, companies are allowed to carry forward Unutilised Items subject to conditions being met. What are Unutilised Items? A company may utilise capital allowances, tax deductions or donations to offset against its income. For example, donations to an Institute of Public Character (IPC) will attract 250% allowable tax deductions. Therefore, if a company [...]