One of the main reasons many foreign investors come to Singapore is that they can set up businesses in numerous industries. Among these, there is also the consulting sector which in the city-state is far more developed compared to other countries around the world. This happens because Singapore is an oasis for all kinds of small and medium-sized enterprises that can thrive in this dynamic business environment.
Setting up a consulting business is not complicated and once established, its owners will need to consider its functionality in the best parameters. For this purpose, accounting is one of the main aspects to have in mind when running a consulting company in Singapore.
Below, our accountants in Singapore explain the main requirements consulting companies need to respect from an accounting point of view and the taxes they need to pay.
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What are the main types of consulting companies operating in Singapore?
Singapore is a magnet for investors in various fields who often require consultancy to make sure they obtain all the available benefits. This has led to the development of this field and now there are plenty of consulting companies operating in sectors like:
- the financial industry, as the investment funds sector is quite developed here;
- the IT industry – Singapore is a leading innovation sector in Southeast Asia;
- the digital marketing sectors, as Singapore is home to numerous e-commerce and other online businesses;
business management which is another developed economic sector in the city-state.
In the past few years, fintech has also become one of the leading innovative industries in Singapore and consultancy in this field is more and more sought by those interested in operating in it.
No matter the type of activity conducted, accounting is a mandatory part Singapore consulting companies must take care of in order to comply with the requirements imposed by the local legislation.
You can rely on us for tailored accounting services in Singapore in accordance with the size and particularities of your business, no matter its field of activity.
Taxation of consulting companies in Singapore
Consulting businesses are imposed the corporate tax just like other companies in Singapore. They are taxed at a flat rate of 17%, however, they can also benefit from various deductions when created as startups.
Consulting companies can operate as domestic companies or as branches of foreign companies, which implies the levy of the corporate income tax on the profits generated here only in the case of branches.
In order to determine the tax to pay, a consulting business must first file annual income statements, plus other financial documents depending on several aspects.
Our accounting firm in Singapore is at the service of consulting company owners with detailed information on the requirements these must comply with from a financial point of view. You can get assistance for payroll in Singapore in relation to calculating and filing payroll taxes, and generating tax statements. Our local accounting firm is at the service of foreign business owners who need support in computing employment-related impositions in accordance with the taxation system applied in the city-state.
Accounting services for consulting companies in Singapore
If you want to create or already have a consulting company in Singapore and need accounting services for it, here is how our specialists can help you:
- we can provide bookkeeping services so that you know how your day-to-day activities are accounted for;
- we can also offer assistance in all tax-related matters so that your company is always respecting the law;
- payroll is also among the services of your company, no matter the number of employees you have. Payroll in Singapore is the procedure used by businesses to pay their employees, typically on a predetermined date each month. Even though the processing of employment-related accounting matters is straightforward, it must be carefully managed because it is subject to a number of rules and regulations and must take into account the status of both resident and non-resident employees.
- assistance in obtaining all the tax incentives available your business qualifies for;
- audits are also in the attention of our specialists if your company meets the requirements that imposes a statutory audit;
- financial reporting and filing services, so that you don’t pay any penalty for late filings.
If there is any other service that you need and was not mentioned above, all you need to do is send an inquiry with our accounting firm in Singapore and we will get back to you as soon as possible.
We can also help you with audit services in Singapore. An audit in Singapore can be performed under several standards. These must adhere to ACRA’s regulations in most cases. However, auditors also have to abide by the standards of international Audits such as IFRS and GAAP. Apart from this, the auditors are also responsible for reviewing the financial statements.
Tax deductions available for companies in Singapore
Consulting companies can qualify for various tax deductions and exemptions, as provided by the Inland Revenue Authority. Among these:
- if the company operates as a startup, it can obtain partial tax exemptions ranging between 50% and 75% from the corporate tax for the first 3 years of activity;
- If the business does not qualify as a startup, it can still obtain a partial tax exemption of 50% or 75% for qualifying income;
- depreciation allowances on capital expenditure for equipment such as computers of up 100% can also be accessed.
If you need accounting services for your consulting company in Singapore, do not hesitate to get in touch with our specialists who can provide you with a customized offer.