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Accounting for Restaurants and Bars in Singapore

Accounting for Restaurants and Bars in Singapore

The food and beverages industry in Singapore has registered substantial increases in the past few years, as it covers not only the needs of the city-state’s population, but it is also an integrating part of the tourism sector. There are numerous bars and restaurants that operate in Singapore, as thanks to the high living standards here and to the fact that the city is made in a large proportion of young people, eating out is quite common.

Singapore bars and restaurants imply various components when it comes to running a business and accounting is one of the most important, especially when considering that such businesses must also comply with certain specific regulations.

Our accounting firm in Singapore is at the service of bar and restaurant owners who need tailored accounting and auditing services. Below, we explain how we can help you.

The main accounting services we can provide to bars and hotels

Our accountants in Singapore have great experience in guiding and offering various services to companies operating in specific sectors that must meet special tax requirements, such as shipping companies.

When it comes to bars and restaurants, these must also comply with certain regulations applicable to the food and beverages industry, among which special GST requirements.

Here are the main services we can provide for restaurants and bars in Singapore:

  1. GST registration which in the case of these businesses is recommended upon registration;
  2. assistance in respecting the tax regulations applicable when selling and serving food and beverages;
  3. guidance in meeting the tax rules applicable to importing and selling alcohol (Singapore has a special law in this sense);
  4. audit and financial statements preparation services are also available;
  5. tailored assistance in obtaining the facilities applicable in this sector.

If you have any questions on a specific accounting service you need, our specialists are at your disposal with detailed answers.

How are bars and hotels taxed in Singapore?

Bars and hotels are imposed the corporate tax at the standard rate of 17, however, when created as a startup, a company can benefit from exemptions for the first three years, thus making this type of business quite appealing.

If from a corporate tax point of view, there are no differences between bars and restaurants and other Singapore companies, when it comes to other taxes, there are certain particularities that apply.

GST registration for food and beverages businesses in Singapore

When running a bar, a restaurant, or a hotel in Singapore, GST registration is mandatory when the business reaches 1 million SGD in turnover over the year. However, voluntary registration is also possible when the owner estimates the company will reach this amount.

The standard rate of the GST is 7% and it applies to most goods and services provided in Singapore, however, restaurants and bars have the possibility of obtaining refunds from the Inland Revenue Authority under certain circumstances.

Our accountant in Singapore is at your service if you want to apply for GST registration and obtain all the benefits when paying this tax.

The alcohol tax in Singapore

Selling and serving alcoholic drinks in Singapore is subject to very strict regulations that imply obtaining special permits, but that also extends to specific tax rules.

The import and sale of alcoholic drinks are subject to the GST, as well as to the excise duty. If the GST is levied at a standard rate, the excise duty is calculated based on per liter of alcohol.

If you need guidance on the duties that need to be paid when selling or serving alcoholic drinks and beer in Singapore, our accounting firm can help you.

Incentives for the food and beverages industry in Singapore

Bars and restaurants can obtain various incentives from the Singapore government in collaboration with other agencies. Among these, the most successful are:

  • food safety incentives under which companies can obtain funds for the implementation of food safety regulations ranging up to 50% of the projects;
  • workforce development incentives for companies investing in their employees’ training which can be subsidized through grants of 50% to 70% for the courses these complete;
  • the Productivity Solution Grant which is available for bars and restaurants with turnover of 100 million SGD or a maximum of 200 employees.

In addition to these, when created as startups, bars and restaurants can also benefit from tax exemptions ranging between 50% and 75% in the first 3 years of activity.

For detailed information on our accounting services for bars and restaurants in Singapore, please contact us.