How to file GST in Singapore? – A quick insight into the importance of getting incorporated

by Ebos Singapore Cloud Accounting

The Goods and Services Tax or GST is an indirect tax and all the companies are aware of it. The Inland Revenue Authority of Singapore or IRAS manages all the payments and collects related to GST.

There are two types of GST registration process,

Compulsory registration
Voluntary registration

Compulsory registration

The compulsory registration may apply in two cases,

If the revenue of your company has exceeded to S$ 1 million in the span of last one year
You are certain that the revenue will exceed S$ 1 million in the next 12 months

No matter if you are eligible for the first or second one, you will have to submit your application to the IRAS within 30days.If you fail to submit it within the given period, it will be considered as a legal offense, which is liable for penalties.

Voluntary registration

If you are in a business where you sell the taxable supplies, you may choose to register for GST filing voluntarily. After that, you will have to deal with quarterly GST filing for the next two years and keep the data safe with you for the next 5 years.

Both of these things could get extremely confusing sometimes, so it would be better if you hire the tax and accounting services in Singapore.

Benefits of being an incorporated company in Singapore

Singapore has received several recognition at a global scale for introducing some of the most business-friendly policies.

Some of the achievements are,

In 2016, Singapore was considered as the best country to start a business among 189 countries
In 2014, Singapore was acknowledged for the highest number of efficient workforce
According to a report of 2014-15, Singapore is the 2nd best country for intellectual property protection
According to a survey conducted in 2014, Singapore is the best nation in Asia based on the quality of living

These are only a few acknowledgments of a long list that Singapore has. Several other things make Singapore so attractive, such as

Robust economy
Simpler tax system with low tax rates
Easy incorporation process
Favorable geographical location
Infrastructure
Productive workforce
Developed the capital market and financial system
One of the lowest crime rates
Well-functioned government
The amazing quality of life

Company incorporation in Singapore: Advantages

Attractive tax system

Singapore has one of the simplest and rational tax systems all over the world. The nation hasn’t imposed any taxes on capital gains or the dividend gained from other business sources. This attracts new thinks or entrepreneurs from all over the world to come and set up a new incorporate business.

According to the tax laws of the country, the new company will get significant tax benefits for the next 3 years. Similarly, the personal tax rates start from 0% and go up to 20%, if the income of the individual is above S$ 320,000.

No double taxation

Singapore has a broad network of avoidance of double taxation agreements with more than 50 countries worldwide. These agreements are designed in such a way that any company or individual doesn’t have to suffer from double taxation.

Complete foreign ownership with no currency control

Singapore allows a foreigner to claim the right to 100% of the stock of their incorporated companies in Singapore. You won’t need any local partners or shareholders, which will allow a foreigner to start a company with customized capital structure and distribute the ownership accordingly.