How Small Businesses Get Impacted by the Corporate Tax Singapore?
The pro-business environment of Singapore has highlighted the importance and vitality of Singapore taxation. In fact, foreign entrepreneurs and professionals are choosing to relocate to Singapore not just due to the business-friendly policies of the Singapore regime but also as a result of the beneficial tax system of the country.
Of all taxes, the corporate tax Singapore is the one which garners a lot of attention. The range of benefits that you can fetch by becoming a part of the business community of Singapore is unparallel. The small businesses in particular are the ones who benefit the most by the taxation Singapore. There are certain schemes & policies introduced by the government which positively impact the small business entities and enable them to flourish and compete with the established firms.
The PIC (Productivity and Innovation Credit) Scheme
As part of the corporate income tax Singapore, if you are engaging in innovative ideas or enhancing the productivity of your company by creative means, then you qualify for the Singapore PIC scheme. Under this scheme, you can avail astonishing benefits such as upto 400% tax deductions or upto S$60,000 in the form of cash payouts on the qualified expenditure of your company. This scheme has been aimed at encouraging the cash-strapped small businesses to come out with innovative business ideas and creative means to increase productivity.
The Singapore Corporate Income Tax (CIT) Rebate
The company tax in Singapore further boosts the morale of small enterprises with the help of the CIT rebate policy. According to this, all companies in Singapore can avail 30% CIT rebate which is subject to a cap of S$30,000. This move has been initiated in order to assist the small companies to deal with the rising costs of doing business.
SME (Small & Medium Sized Enterprise) Cash Grant
And lastly, in order to provide encouragement and financial assistance to the small & medium sized firms which do not get taxed under the Singapore company tax, the government has introduced a one-off SME cash grant of 5% on the total revenue of the firm in a given Year of Assessment (YA), which is subject to a cap of S$5,000.
In order to guide you through the process of deriving full benefits of the corporate income tax Singapore, a number of reliable corporate tax services providers have come about in Singapore, who with their tons of experience and expertise are well equipped to not only let the small companies comply with the due dates of Singapore taxation matters but also to make them reap the advantages of the progressive tax system of Singapore.
If you are keen to know more about company tax Singapore and want to avail our services pertaining to the same, then do mail us at info@sbsgroup.com.sg or call us on: +65 6536 0036.
