How to file GST in Singapore? – A quick insight into the importance of getting incorporated
The Goods and Services
Tax or GST is an indirect tax and all the companies are aware of it. The Inland
Revenue Authority of Singapore or IRAS manages all the payments and collects
related to GST.
There are two types of
GST registration process,
- Compulsory registration
- Voluntary registration
Compulsory registration
The compulsory
registration may apply in two cases,
- If the revenue of your company has
exceeded to S$ 1 million in the span of last one year
- You are certain that the revenue
will exceed S$ 1 million in the next 12 months
No matter if you are
eligible for the first or second one, you will have to submit your application
to the IRAS within 30days.If you fail to submit it within the given period, it
will be considered as a legal offense, which is liable for penalties.
Voluntary registration
If you are in a business
where you sell the taxable supplies, you may choose to register for GST filing
voluntarily. After that, you will have to deal with quarterly GST filing for
the next two years and keep the data safe with you for the next 5 years.
Both of these things
could get extremely confusing sometimes, so it would be better if you hire
the tax and accounting services in Singapore.
Benefits of being an incorporated company in Singapore
Singapore has received
several recognition at a global scale for introducing some of the most
business-friendly policies.
Some of the achievements
are,
- In 2016, Singapore was considered
as the best country to start a business among 189 countries
- In 2014, Singapore was
acknowledged for the highest number of efficient workforce
- According to a report of 2014-15,
Singapore is the 2nd best country for intellectual property protection
- According to a survey conducted in
2014, Singapore is the best nation in Asia based on the quality of living
These are only a few
acknowledgments of a long list that Singapore has. Several other things make
Singapore so attractive, such as
- Robust economy
- Simpler tax system with low tax
rates
- Easy incorporation process
- Favorable geographical location
- Infrastructure
- Productive workforce
- Developed the capital market and
financial system
- One of the lowest crime rates
- Well-functioned government
- The amazing quality of life
Company incorporation in Singapore: Advantages
Attractive tax system
Singapore has one of the
simplest and rational tax systems all over the world. The nation hasn’t imposed
any taxes on capital gains or the dividend gained from other business sources.
This attracts new thinks or entrepreneurs from all over the world to come and
set up a new incorporate business.
According to the tax laws
of the country, the new company will get significant tax benefits for the next
3 years. Similarly, the personal tax rates start from 0% and go up to 20%, if
the income of the individual is above S$ 320,000.
No double taxation
Singapore has a broad
network of avoidance of double taxation agreements with more than 50 countries
worldwide. These agreements are designed in such a way that any company or
individual doesn’t have to suffer from double taxation.
Complete foreign ownership with no currency control
Singapore allows a
foreigner to claim the right to 100% of the stock of their incorporated
companies in Singapore. You won’t need any local partners or shareholders,
which will allow a foreigner to start a company with customized capital
structure and distribute the ownership accordingly.
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