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 [...]
As a separate legal entity, a company can purchase and hold a property. This can be either a commercial or residential property. Due to the extremely high additional buyers' stamp duties levied on companies when they purchase residential properties, companies usually purchase commercial properties. Therefore, in this article, we will focus on a Singapore company [...]
Do note that this is about tax obligations. Namely, what needs to be filed to the Inland Revenue Authority of Singapore (IRAS). This is not the same as the filings that need to be made to the Accounting and Corporate Regulatory Authority (ACRA). There is still a requirement according to the Limited Liability Partnerships Act to [...]
The deadline to file personal income taxes is on the 18th of April 2024. This is, in most cases, for personal income that was earned during the calendar year 2023. Firstly, here are the Resident Income Tax rates for the Year of Assessment 2024 (YA2024). Chargeable Income Income Tax Rate (%) Gross Tax Payable [...]
The Auto-Inclusion Scheme (AIS) is a system where employers electronically submit their employees’ employment income details to the Inland Revenue Authority of Singapore (IRAS). Subsequently, IRAS automatically incorporates this information into the employees’ online tax returns and assessments. Here's how it works: Employers are required to compile all employment income information and submit it via [...]
We received this question from a prospective client. He is a foreigner and is considering shifting his business to Singapore. He is looking to incorporate a Singapore company and would be looking to apply for a valid work pass for him to live and work in Singapore. This article will be answering his question in [...]
As stated in section 68(2) of the Income Tax Act, every employer is required to report employee earnings to IRAS. Here is a reproduction of the statute: The Comptroller may, by notice in the Gazette, require every employer to prepare and deliver to the Comptroller or any person specified in the notice, for any year [...]
Section 10L of the Income Tax Act 1947 (ITA) takes effect from the 1st of January 2024. This section deals with the tax treatment for gains from the sale of foreign assets. In this article, I will provide a very brief explanation of the Here is a reproduction of sections 10L(1) and (2) of [...]
This question pertains to self-employed individuals and partnerships. So if you are a self-employed individual, sole proprietor or partnership, this question and its answer are relevant to you. All self-employed individuals, sole proprietors and partnerships have to prepare their statement of accounts. This is under the law. The statement of accounts reflects the business income [...]
There are 2 tax relief schemes that help companies reduce their tax bills. They are: The Tax Exemption Scheme for New Start-Up Companies The Partial Tax Exemption Scheme 1) The Tax Exemption Scheme for New Start-Up Companies The Tax Exemption Scheme for New Start-Up Companies will reduce a company's tax bill greater than the [...]