How Effective Networking Is Essential For Businesses

As the financial hub of Asia, Singapore offers various incentives and opportunities for startups and small businesses. Many businesses have often consider setting up in the country, having gained a reputable business destination. The process (company incorporation) in Singapore is relatively simple, and most of the activities are automated.

However, to deal with tax (corporate norms), many companies face difficulties to handle the situation. Corporate tax is a mandatory part of your business, but it may get challenging to deal with compliance issues. Outsourcing to an accounting firm in Singapore that provides tax services can help you to analyse your business, manage your reporting obligations, and support your compliance requirements.

Here are some important issues why you need to look for corporate tax advisory services for your business:

Why outsource?

There are different types of tax challenges and the corporate tax advisory services efficiently deal with it. Outsourced accounting firms have extensive experience and knowing in handling various portfolios from different industries and find the best possible solution.

Your tax consultant will handle all the tax related issues, mitigate any compliance issues and this can help to reduce your tax burden. You’ve to keep in mind that corporate tax is a vital segment (specialized), so the experience, professionalism and expertise are quite essential.

Corporate tax advisory services can help you understand the implications of taxes as it is directly related business, investment and expansion matters. At the same time, they’ll suggest you how reduce your corporate tax legally. Accounting firms not only provide outsourced accounting services, but also corporate tax advisory services to give you a better idea on the tax structure and suggest the best options for you.

Local corporate tax system

Singapore is one of the leading countries for corporate tax where the country also offers various incentives in the form of tax for attracting foreign investments. It introduces a territorial (single-tier) based flat-rate income tax system. The country’s friendliness for business and low tax rates are two major factors for global investment and steady economic growth. You can get a comprehensive overview for tax system, tax rates and incentives from them.

Income tax (single-tier) system

Single-tier income tax (corporate) has been adopted by Singapore from 1st January, 2003. That means, for the stakeholders; the double-taxation will not be applicable. So, final tax is paid by a business based on its chargeable income and the shareholders are fully exempted from taxation for all dividends that are paid by a company. Moreover, tax is not imposed on capital gains in Singapore. For instance, capitals gains can include gains on capital transactions (foreign exchange), fixed assets sale, etc.

What to expect

It’s important to know that corporate tax services differ based on the portfolios of the business. However, outsourcing to the right accounting company can help you to understand the tax calculations and offer related services for regulations of local tax. At the same time, the offshore investors can understand the implications of regulatory framework and tax calculations. So, if you think about advantages and disadvantages of corporate tax issues for your decision making, you can certainly consider a reliable corporate tax advisory service.

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