Singapore attracts a lot of businesses from all over the world. All these companies flourish in the island nation thanks to the ease of doing business in Singapore. The government has made doing business very easy in Singapore. With the most modern systems that have been set up in the government agencies, it is very easy to fulfill the mandatory requirements and ensuring that your business is within the legal framework.
The nation provides excellent infrastructure facilities. The communication facilities are very nice that many online startups are able to function very well in the country. Easy finance is another big advantage of doing business in Singapore. With such excellent facilities, there are no difficulties in conducting your business in the nation.
Paying Your Taxes and Being within the Legal Framework
All these facilities were possible because of the revenue earned by the government. The government needs money to improve the facilities and enabling the smooth function of your company. Tax is the main revenue for governments. Using this tax money, the government makes lives for the citizens comfortable. Though the tax rate in Singapore is very low compared to other countries, the prompt collection has helped to earn good revenue.
The present rate of corporate tax in Singapore is 17 percent. However, the government offers tax exemption to new companies. This exemption is effective for three years from the date of incorporation. There are certain conditions the company must fulfill to avail of this privilege. The company should be incorporated in Singapore and be a resident of the nation. The number of shareholders must not exceed twenty. One of the shareholders must hold a minimum of ten percent of the total shares.
Using Tax Experts to Compile Your Tax
Tax experts are the best people to help you with calculating the tax and advising you about the tax structure and the benefits given by the Singapore government. These tax consultants are helping a lot of companies in Singapore stay within the law and help the government collect the taxes efficiently. These consultants will help you in preparing your tax estimates. They can also help you in understanding what impact the taxes will have on your financial position.
These tax professionals help you in paying Singapore income taxon time and filing the returns for the same. Apart from the company income tax, there is also personal tax to take care of. There are some exemptions allowed in the personal income tax also. You can reduce the amount you contribute to the CPF from tax calculation. This is possible when you draw a salary as a director.
The director can also get a fee for the services. These are calculated and paid in different ways depending on the decision by the board. Both the directors’ salaries and the fees are exempted from the company taxable income. This means that the more salaries you withdraw the lesser tax you will pay from the company.
Shareholders don’t have to pay taxes on their dividends. The reason is that profits are calculated after paying taxes and hence cannot be taxed again. Tax experts can advise you whether you should take a directors’ salary or fees or withdraw the amount as a dividend. The consultants will check various factors and give you the proper advice on the matter. This is the reason why most companies pay to keep these tax consultants by their side.
Helping Your Employees Secure Permits to Work in Singapore
Many foreigners like to come to Singapore for work. Most foreign companies like to post their persons as directors or in executive positions. Those who come to Singapore enjoy their stay here because Singapore has a multicultural society. There is a mix of people from all nations. This makes life in Singapore comfortable for most foreigners. The peaceful atmosphere is another attraction.
People who want to stay and work in Singapore must get the necessary work permits. Executives and managerial level employees working here can get the Singapore employment pass which gives a lot of privileges. The employees can freely work and travel in Singapore. They can go out and come into the nation without processing visas each time. They are also able to bring their spouses and unmarried children to live with them. You can take the help of consultants to process the employment pass.
