Our accounting firm in Singapore is at the service of bar and restaurant owners who need tailored accounting and auditing services. Other services provided by our auditors in Singapore include counseling and guidance on regulations companies must follow. Consulting services are advisory in nature. Consulting services are intended to bring value to the creation or adjustment of processes, procedures, and controls to reduce risk and accomplish goals.
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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:
- GST registration which in the case of these businesses is recommended upon registration;
- assistance in respecting the tax regulations applicable when selling and serving food and beverages;
- guidance in meeting the tax rules applicable to importing and selling alcohol (Singapore has a special law in this sense);
- audit and financial statements preparation services are also available;
- 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 subject to 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.
If you have opened a restaurant or bar in Singapore that can be categorized as a start-up, you can benefit from a corporate tax exemption on the first 3 consecutive years of assessment. This tax benefit applies to new small businesses, including those operating in the food and beverage industry. So, if you need assistance in preparing the documents to file for it, you can rely on our accounting firm in Singapore.
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 9% 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. You can also rely on us for tailored audits in Singapore.
Payroll services for restaurants and bars in Singapore
Human resource is one of the key components when having a restaurant or bar in the City-State. For this purpose, we offer tailored payroll solutions in Singapore. Among the services you can obtain are:
- employment registration;
- social security registration for employees;
- salary computation and payment;
- tax calculation and imposition;
- payslip generation;
- personal relief computation;
- sick leave registration and payment;
- overtime payment;
- completing termination procedures.
All these aspects require attention to avoid penalties. Moreover, you can acquire the package you need based on the size of your company and number of employees.
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.
The service charge in Singapore
Tipping is quite common in the food and beverage sector, especially when it comes to bar and restaurants in Singapore. However, here, companies impose a 10% service charge that is included in clients’ bills.
This charge is separate from the GST, and it can be levied or not at the discretion of the establishment. So, if you decide to apply such a charge, you must add it to the receipt issued to the client. Also, when adding it, the total cost paid by the client will include the GST on the total amount with the service fee.
Our accountants in Singapore can offer more information on this charge.
Tax assessment requirements for restaurants and bars in Singapore
The taxation of enterprises in Singapore implies computing their profits for the year of assessment. At the same time, there is also the notion of calendar year, which is the period during which a business generates income. The year of assessment refers to the tax year for which the income tax is computed and imposed. This happens because the Inland Revenue Authority will issue the tax obligation documents in the following year for the previous one.
It is important to make this distinction because Singapore businesses are required to file and pay their taxes in different periods. So, if your restaurant or bar runs as a private limited liability company, your tax assessment year will be 1st of January – 31st of December of the previous year. If you run your business as a sole trader, the assessment year starts on April 1st and ends on March 31st of the following year.
If you need guidance in ensuring tax compliance, our Singapore accountants can help you compute and file your tax returns in accordance with the tax assessment year.
Incentives for the food and beverages industry 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 integral 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.
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 they complete;
- the Productivity Solution Grant ,which is available for bars and restaurants with a 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.