Singapore Tax Planning: How to Implement It in Your Business
Despite the fact that Singapore taxation is well regulated, competitive and comes with a slew of tax incentives, it is imperative to make tax planning in Singapore for business and investment planning. Tax is an ever present cost of the businesses that needs to be minimized in order to maximize the level of business profits. Nevertheless, Singapore tax planning must not be seen as an attempt towards tax evasion.
A proper tax planning helps businesses reduce its tax obligation and enjoy maximum business profits. The professional firms offering compliant tax services in Singapore can help the businesses with their length and breadth of taxation expertise to minimize tax obligations. The objective of this blog is to provide an overview of Singapore tax planning.
Following are the certain things you need to consider while doing tax planning in Singapore:
- Tax Authority of Singapore: Inland Revenue Authority of Singapore (IRAS) is the concern tax authority of the country that administers and manages the tax laws in Singapore. This authority is responsible to run, manage, assess and collect taxes from all Singapore sourced income. Before embarking on the Singapore taxation planning, it is important to understand the rules and regulations of IRAS in order to avoid a situation where your business is found guilty of tax evasion.
- Singapore Tax Rates: Singapore tax rates are known for its competitiveness. The current headline tax rate of corporate income tax Singapore in 17% which is deemed as one of the lowest in the world. Before any tax planning process commence, it is important for your business to get an in-depth idea of the applicable tax rates for various taxable income levels and find out the actual tax rates for your annual taxable income. This will help you get the most effective tax planning in Singapore.
- Tax Reliefs: Tax reliefs or tax saving plans are the most important aspects of Singapore tax planning that you should not miss out to get the detail information about it. As a part of this initiative, you must try to find out the best tax saving plans such as tax deduction plan for employment expenses, charitable donations and so forth.
- An Experienced Tax Consultant: The best way to do tax planning for tax saving is to hire an experienced tax consultant either through a firm or independent one. A professional tax consultant will ensure you get the best plan for tax minimization through its innovative approach. The consultant will help you avoid tax evasion while doing effective planning for tax saving. They are well conversant with the regulations of IRAS, tax rates, tax relief plans and can execute the best tax saving plan for you.
SBS Consulting ensures an effective Singapore tax compliance advisory service to its wide-ranging clients. The firm uses proactive and innovative approach to reduce tax burdens of their clients. To know more information about tax planning in Singapore, you can call on +65 6536 0036 or mail on info@sbsgroup.com.sg
