The Guide Of Business Expansion For Singapore Market

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-Introduction of Singapore Taxation System

-Introduction of Singapore Goods & Services Tax (GST)

Singapore Company Management

	When to hold AGM and AR Filing	Required Timeframe	Required Documents	Corresponding Government Authority	Non-compliance
Annual General Meeting / Annual Return	Holding the general shareholders’ meeting (AGM) •Within 6 months (4 months for listed company) from the end of each fiscal year Filing of Annual Return (AR) •Within 7 months (6 months for listed company) from the end of each fiscal year	•Preparation of AGM documents take about 1~2 business days (from the day Financial Statement received) •Within the day for annual return submission	•Audit/Unaudited Financial statements •AGM documents	Accounting and Corporate Regulatory Authority (ACRA) •	•Composition Fines of SGD 300 for each offense under Article 175, 201 & 197 •Court Prosecution •Disqualification of directors •Striking off companies.

	When to file	Required Timeframe	Required Documents	Corresponding Government Authority	Non-compliance
GST (For GST registered companies)	Reporting period •Monthly / quarterly / semi-annually (Generally quarterly report) Deadline •Within one month from the end of the reporting period •Compulsory e-Filing	•5 to 10 business days (from the day documents received)	•GST F5 (periodic filing) •GST F7 (errors filing) •GST F8 (final filing before deregistration)	Inland Revenue Authority of Singapore (IRAS) •	•SGD 200 imposed immediately and continuously for every completed month (max. SGD 10,000) •Issue estimated Notice of Assessment and imposed 5% penalty on estimated tax •Summon the business or person responsible to Court

	When to file	Required Timeframe	Required Documents	Corresponding Government Authority	Non-compliance
Corporate Income Tax Return	Taxable period: preceding financial year (i.e. income earned in financial year 2020 will be taxed in 2021) Estimated Chargeable Income (ECI) •e-File within three months from the end of financial year (except company qualifies for the administrative concession) – Annual revenue less than SGD 5 million; and – ECI is NIL. Corporate tax return •e-File by 15 December every year	•2 weeks to 1 month (timeframe may vary depending on size of company, complexity of tax structure and business activities)	•Audit/Unaudited Financial Statements •Tax computation and relevant tax schedule •Form C-S (Lite)/Form C-S/Form C	Inland Revenue Authority of Singapore (IRAS) •	•Issue estimated Notice of Assessment (Company required to pay within one month) •Offer to compound the offence (not exceeding SGD 1,000) •Summon the company or person responsible to Court

	When to file	Required Timeframe	Required Documents	Corresponding Government Authority	Non-compliance
Employment Income Reporting	Employers are required by law (S68(2) of the Income Tax Act) to prepare annual report for employees who are employed in Singapore by 1 March each year. Deadline •Employer: Distribute IR8A to employee by 1 March •Employee: Submit income tax returns to IRAS a)Paper Filing: 15 April each calendar year b)e-Filing: 18 April each calendar year	May vary depending on the number of employees Schedule according to case by case basis	•Form IR8A, Appendix 8A, Appendix 8B, •Form IR8S (excess CPF contribution) •Auto-Inclusion Scheme (AIS)* * From Year of Assessment (YA) 2021, participation in AIS is compulsory for employers with 6 or more employees or who have received the “Notice to File Employment Income Of Employees Electronically under the Auto-Inclusion Scheme (AIS)”	Inland Revenue Authority of Singapore (IRAS) •	•Issue estimated Notice of Assessment (Individual required to pay within one month) •Offer to compound the offence (not exceeding SGD 1,000) •Summon to Court

Introduction of Singapore Taxation System

There are several reasons for investors turn to Singapore for establishing their operations and one of the determinant is Singapore’s tax regime – well-known for its attractive corporate and personal tax rates, tax relief measures, non-taxable capital gains, one tier tax system and extensive double tax treaties.

Persons, including corporations, partnerships, trustees and bodies of persons carrying on any trade, profession or business in Singapore are chargeable to tax on all profits that “accrued in” or “derived from” Singapore as well as income received from outside Singapore.

Type of Taxes in Singapore

Income Tax
Property Tax
Motor Vehicle Taxes
Customs & Excise Duties
Goods & Services Tax (GST)
Withholding Tax
Betting Taxes
Stamp Duty
Others

Introduction of Singapore Goods & Services Tax (GST)

Goods and Services Tax (GST) was implemented on 1st April 1994 in Singapore. The Inland Revenue Authority of Singapore (IRAS) acts as the agent of the Singapore government and administers, assesses, collects and enforces payment of GST. Introduction of GST is seen as a means to lower personal and corporate income tax rates while maintaining a steady revenue base for the government. GST is an indirect tax as it taxes expenditure. The current rate of GST is 7%.

Goods and Services Tax or GST is a broad-based consumption tax levied on the import of goods (collected by Singapore Customs), as well as nearly all supplies of goods and services in Singapore. In other countries, GST is known as the Value-Added Tax or VAT.

GST exemptions apply to the provision of most financial services, the supply of digital payment tokens, the sale and lease of residential properties, and the importation and local supply of investment precious metals. Goods that are exported and international services are zero-rated.

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