If you pay taxes in Singapore, you deal with the Inland Revenue Authority of Singapore (IRAS). They collect taxes, make tax laws, and help the government with tax matters.
Here's what you should know about IRAS and when you might need to contact them.
IRAS, or the Inland Revenue Authority of Singapore, started in 1947 as the Singapore Income Tax Department. Its main job is to collect taxes from people and businesses. Additionally, it has departments dedicated to investigations, enforcement, and international taxation.IRAS collects about 70% of the government's money, which is used for Singapore's economy and social programs.
The IRAS collects various types of taxes, including income tax, goods and services tax, property tax, stamp duty, casino tax and taxes for charities.
It advises the government on tax matters. Furthermore, it includes helping to make tax policies and laws, as well as creating tax treaties.
IRAS asks companies to maintain accurate records and accounts of their business operations. This involves documenting financial transactions, maintaining accounting records, and storing bank statements.
Using IRAS-approved accounting software is recommended for businesses to ensure their records are well-maintained. Failure to keep proper accounts can result in penalties and fines from enforcement authorities.
In Singapore, companies are taxed based on their profits, not where they are registered. For example, if a company is registered in Singapore but does most of its business in another country, it may only need to pay tax on the money it makes there.
Companies in Singapore pay corporate income tax from 0 to 17%. After paying taxes, they can share profits with shareholders through dividends without extra taxes. Moreover, companies also get tax rebates and incentives to lower their tax bills.
As of 2021, Singapore has made 26 free trade agreements (FTAs). These agreements are meant to remove obstacles to trade and encourage investments among countries. Businesses in Singapore can use these FTAs to get advantages like lower tariffs, quicker access to new markets, and better protection for their inventions and ideas.
These are the key points to remember about IRAS. It's important to follow tax rules by understanding them. Tax matters can be intricate, so consider hiring a qualified tax agent like Clooud Consulting for guidance. We're here to assist you with any tax-related inquiries you may have!
In Singapore, non-profit organizations can operate as Companies Limited by Guarantee (CLGs), charitable trusts, or societies. Setting up a CLG offers several benefits, such as limited liability for members, no need for share capital, and eligibility for tax exemptions. This article explains the main features of a CLG and the […]
As businesses in Singapore grow, handling payroll in-house can become complicated and take up a lot of time. Payroll isn't just about paying employees; it also involves accurately calculating salaries, deductions, taxes, and contributions to the Central Provident Fund Board (CPF). For business owners, deciding to outsource payroll is an […]
Bookkeeping for Building and Construction Companies Bookkeeping is important for all businesses, but building and construction companies face specific challenges. They handle different revenue streams, complex project budgets, and changing costs, which makes accurate bookkeeping vital for their financial health and success. This article explores the basics of bookkeeping for […]
InvoiceNow is a national e-invoicing system that helps businesses of all sizes process invoices more efficiently, lowering costs and speeding up payments. It uses the Peppol framework, which allows e-invoices to be sent in a standard digital format between different finance systems. InvoiceNow was launched by the Infocomm Media Development […]
In recent years, the accounting industry in Singapore and worldwide has undergone major changes, mainly due to advancements in artificial intelligence (AI) and automation technologies. As these tools become more common in accounting, they promise to significantly change how accountants do their work and provide value. While businesses are slowly […]
From crafting engaging new-hire orientations and continuous learning programs to setting specific performance goals for employees, payroll is a crucial part of any HR department’s success. For many companies, payroll is a recurring task that needs to be handled with complete accuracy, timeliness, and detailed reporting every month or week. […]
In today’s fast-changing business world, flexibility and innovation are key to success and growth. Employment Hero is leading this change, offering complete HR and payroll solutions designed specifically for Southeast Asian businesses. As the Head of Sales & Partnerships for Southeast Asia at Employment Hero, I’m excited to share how […]
Small and Medium Enterprises (SMEs) account for 99% of all businesses in Singapore, and these companies, founded by hardworking entrepreneurs, are essential to the country's economy. To succeed, it's important for them to focus on running their business effectively. One of the first steps to success is keeping business finances […]
Do you need to register for GST if your business is in Singapore? What are the advantages of being GST-registered? Our easy-to-understand guide covers the basics of GST registration, including the S$1 million taxable turnover threshold and the benefits of being a GST-registered business. This will help you make informed […]
Singapore is well-known as a top business destination, thanks to its strong economy and attractive tax benefits. Because of this, many business owners and investors see it as a great place to set up a business. If you’re thinking about starting a physical or online business in Singapore, you’ll need […]
