Some of the most frequently asked questions on accounting matters in Singapore that we have come across from our clients are as listed below.
1. Which are the tax authorities in Singapore?
The main tax authority in Singapore is the Inland Revenue Authority of Singapore (IRAS). It is responsible for collecting taxes which sum up for more than 70% of the Operating Revenue of the Government which sustains the economic and social programs of the Government to realize quality development and an inclusive society.
2. Is VAT registering compulsory in Singapore?
The European VAT is the equivalent of the GST (Goods and Services Tax) in Singapore. All companies which conduct business activities in Singapore have to register for GST with the IRAS.
3. What are the reporting requirements in Singapore?
All private limited companies in Singapore are requested to comply with the Accounting and Corporate Regulatory Authority (ACRA). Yearly reports are mandatory for active, as well as inactive companies.
4. Which companies need to perform an audit in Singapore?
Companies in Singapore which are corporate shareholdings or which have an yearly revenue in excess of SGD 5 million are required to have their accounts audited.
5. What are the yearly financial statements which have to be submitted?
The annual financial statements that have to be submitted by companies in Singapore include consolidated statements (balance sheets, cash flow and income statements and so on), statements of financial position (assets, current assets, equity, liabilities and others) and other relevant data. Our accountants in Singapore can provide more details on this matter.
6. What is the value of Goods and Services Tax (GST) in Singapore?
As of 1 July 2007, the GST rate in Singapore is 7%.
7. What are the corporate taxes in Singapore?
The corporate tax rate in Singapore is established at 17% since 2010, although certain exemptions can be granted.
8. What are the accounting standards in Singapore?
The accounting standards in Singapore are known as the Financial Reporting Standards, which are issued by the Accounting Standards Council (ASC).
9. Is there a social security tax in Singapore?
There is no social security tax in Singapore.
10. Is Singapore a tax haven?
Because of the low taxations applied to residents and nonresidents, Singapore is considered to be a low tax haven.
We invite you to watch the following video for more answers:
If you have more questions, please do not hesitate to contact our accounting firm in Singapore.