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Accounting for IT Companies in Singapore

Accounting for IT Companies in Singapore

Out of the many industries that thrive in Singapore, IT is for sure one of the most powerful. With a good internet connection and infrastructure, the city-state provides numerous development possibilities as it is also one of the most technologically advanced cities in the world.

Setting up an IT business in Singapore is a great idea, and after registration, there are various tax and accounting matters to consider, followed by respecting all the regulations imposed under the law. If you are an IT business, the accounting services described below are for you and they are professionally provided by our accounting firm in Singapore.

Accounting services for your Singapore IT business

The IT sector is quite vast, and businesses operating in it can range from small to large ones, including branches or subsidiaries of foreign companies that have their regional headquarters in Singapore which entails they service clients from several countries right from here. Also, their operations can be quite different, as this is one of the industries with many subdivisions. This is also why such companies can benefit from tailored accounting services in Singapore, and among these, we mention the following:

  1. tax and GST registration is the first to consider when setting up such a company;
  2. payroll and HR services for businesses that have many employees;
  3. bookkeeping and monthly financial statement preparation services;
  4. audit and annual financial statement filing services also enter our attention;
  5. guidance in obtaining tax rebates, deductions and exemptions in accordance with industry-related incentives;
  6. specialized assistance in double taxation matters for foreign business owners.

The appointment of auditors in Singapore is required unless specifically exempted by another law that is currently in effect. A company must adhere to the standards established by the Accounting and Corporate Regulatory Authority. An entity that conducts statutory audits is subject to ACRA compliance. We offer various types of audits to all types of companies. If you need assistance in other taxation matters, our accountants and auditors in Singapore are at your service.

Tax aspects to consider when opening an IT company in Singapore

The taxation of an IT company is no different from that of companies in other fields, such as tourism, however, because it is expected to generate good profits from the first year of activity, GST registration is recommended alongside tax registration in this case.

From a corporate tax of view, IT enterprises are subject to the corporate tax of 17%, however, they can obtain important deductions when created as a startup (many IT companies are launched this way in Singapore and all over the world). If such a company is linked to the financial sector, which is often the case of fintech and cryptocurrency businesses, it must also comply with other requirements imposed in this industry.

This is one of the main reasons to choose specialized accounting services for an IT company in Singapore. Our firm is at the service of entrepreneurs who choose to operate in this sector and want to take advantage of what the city-state has to offer. Our audit firm in Singapore is also at your service.

Bookkeeping services for IT companies in Singapore

Bookkeeping is one of the most important parts of running a business in Singapore. Day-to-day invoices and other financial documents that need to be kept in order can be handled by our accountants in Singapore who can provide tailored services to small and large IT businesses, in accordance with their size, but also with their divisions, which is often the case of such companies in this state.

Payroll also enters the attention of our accountants who can prepare all the papers related to employee salaries and handle all the monthly burdens of an HR department without you having to create one in your company.

Why choose an outside accounting firm in Singapore?

Many companies in various fields, including shipping, choose to outsource their accounting to specialized firms to avoid complications and time. Working with an experienced accountant is the easiest choice and enables business owners to focus on the actual operations of the enterprise without having to worry about finding the right employee for such a task.

 Often, accounting implies more than one person which is why a specialized firm is the go-to solution and has a minimum financial impact on the company’s expenses.

All our accountants are accredited by the Institute of Chartered Accountants in Singapore.

There are many businesses with offices in Singapore that employ both residents and non-residents. Depending on the employee’s residency status, there are different considerations to make, such as CPF payments, maternity pay, leave, income tax, and the foreign worker’s levy. Therefore, managing your payroll can take a lot of time and be challenging, which is why you can use the services of a payroll company in Singapore.

Tax rates applicable to Singapore IT companies

Here is what you need to know about the taxation of newly registered IT businesses in Singapore:

  • in the first year of activity, such a business benefits from a reduced rate of 4.25% on corporate income for the first 100,000 SGD;
  • in the second year, the effective tax rate is 8.25% on income ranging between 100,001 and 200,000 SGD;
  • in the third year, the standard rate of 17% applies on income ranging between 200,001 and 2 million SGD.

For tailored accounting for an IT company, please contact our Singapore accountants.