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5 Keys Areas Impacted by Singapore Budget 2021

As much as the GDP of Singapore shrank to 5.4% in 2020; the government has taken a bold approach and put measures in place that are meant to spur growth and cushion businesses and workers from the impact of the prevailing economic changes. Here are some of the five key areas impacted by budget 2021;

The Funding of Large Local Businesses for Global Scaling

Singapore government has talked of helping the large local enterprises to scale globally by providing S$500 as growth capital. The funding capital is to be co-invested by Temasek Holdings which will then be matched by the government’s funds on a one-to-one basis. An amount of S$1 billion has been made available for investing in the large businesses.

The new platform for funding comes as the changes taking place in the global economic space have made it harder for the large local enterprises to attract private equity players. The government previously was focusing on aiding small and medium sized enterprises (SMEs) that have annual revenues of up to S$100 million.

New Launchpad Innovation

In order to encourage companies and drive innovative ideas, the government of Singapore announced of investing in a corporate venture launch pad which will be useful for the larger businesses that intend to stir up start-up mindset within their organizations. The minister of finance also added that a cloud based digital bench will be created to for its open innovation platform to help businesses further in gaining access to digital solutions alongside funding for prototype and the deployment of the innovative ideas.

With businesses innovating, the minister foresaw a rise of intellectual property and the intangible assets that businesses may need to commercialize and also protect their businesses. The government in response plans to unveil the Singapore Intellectual Property Strategy 2030 which is aimed at not only supporting businesses towards supporting such properties but also is aimed at training skilled professionals in the respective fields.

Extension of GST to Imported Low-Value Goods

While the minister of finance said that goods and service tax will not increase from 7% to 9% in the year 2021 due to the prevailing economic situation; he added that the tax will be extended to the low value goods especially the items that are valued at up to S$400 on goods imported via air or post.  GST tax is designed to take effect from January 2023 onwards and is more likely to affect international purchases form eCommerce platforms.

GST will also affect the non-digital services for consumers such as counseling, fitness training and the tele-medicine services offered by overseas parties.

Adoption of Emerging Technologies

Singapore government is set to inject S$1 billion in the various sectors to help mature enterprises adapt well to the emerging technologies such as artificial intelligence, trust tech, and 5G. During the announcement for budget 2021, it was announced that the government will be launching a CTO-as-a-service initiative which is meant to provide businesses with access to digital solutions such as IT consultancies.

Support to sectors that are hardly hit

The government has taken drastic measures to support the sectors that have been badly hit by the covid-19 pandemics such as aviation, tourism, and aerospace in 2021. The government through budget 2021 is also committed to helping businesses in Singapore digitalize and also innovate as a way of building the country’s reputation as the global-Asia node.

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corporate service provider in Singapore

Why you should Engage Onestop Assurance in Singapore

When engaging a corporate service provider in Singapore, it’s advisable that you work with a reputable firm that not only understands your industry but also capable of delivering professional services that impact business growth and success. Onestop CA Singapore is a reputable corporate service provider in Singapore that’s well known for helping clients solve a range of professional tasks such as accounting, auditing, business advisory, taxation, incorporation of the company, and more.

At Onestop, every member of the firm is a team player with a strong belief in being customer centric. Apart from demonstrating industry expertise with regard to delivery of top-notch services, the professional proactive approach is one key thing that stands out. When you engage Onestop Assurance for any professional task, you can be assured of a personalized attention and delivery of practical solutions that effectively address the unique company needs.

Depending on your company needs you can be assured of expert service delivery as offered by a team of CA professionals. The highly reliable and scalable services are well designed to not only help in streamlining the business processes for better results but also has the potential of moving the business forward. Onestop is cognizant of the fact that companies value their time and money and it’s for that reason that they outsource corporate services to those well versed with all of the statutory regulations, and tax requirements so that compliance is observed and unnecessary penalties and errors in financial statements are avoided.

Here are some of the key areas that Onestop will ensure high level of accuracy and compliance is observed;

Audit and Assurance

When you engage Onestop CA Singapore as your preferred audit firm in Singapore; the team involved takes their time to understand your company’s business operations so as to identify the effective methodologies that can be used to examine the financial records. The team is well known to provide a good blend of the latest technologies and innovative solutions that helps with the provision of customized auditing. All this is undertaken with the intention of ensuring an authentic assessment of financial records and fairness reporting.

Apart from delivering accurate reporting of the financial reports, the team working on the company records also provides advisory and suggestions on how weaker areas can be improved. Onestop believes in fairness when it comes to financial reporting and will always commit to loyalty with regard to revealing any sort of fraud, and financial irregularities that’s captured in the company’s financial records.

The strength of the CA professionals that handle auditing, accounting, tax filing, assurance and other corporate tasks is based on their level of knowledge, skills and expertise that have been demonstrated through the years.

Income Tax Filing

Onestop is committed to offering income tax filing services that enable businesses to be 100% tax compliant. Tax deductions and tax exemptions are well executed through the firm’s optimized tax planning strategies. When you engage Onestop firm for tax planning and filing of tax returns, you can be assured of enjoying tax benefits that your company is considered eligible for, and such can have a huge impact on your company finances.

Originally published by onestop-audit.com

Income tax filing

Basic Taxation Tips in Singapore|Income Tax Filing

Singapore is considered a tax haven due to the tax incentives given to foreign investors who decide to invest in the country. Taxation is a key requirement by every government as it’s what is used to develop a specific country, create a better community, environment, and a more vibrant economy. Singapore follows a territorial type of taxation where individuals and companies are mainly taxed on the income sourced in Singapore. Having knowledge of the basic taxation tips can be of great help when considering income tax filing.

Working with a reputable corporate service provider in Singapore can be quite beneficial as they are well versed with all tax related matters in Singapore. The corporate tax rate is at a flat rate of 17% and top tax marginal rate is 22% with the highest tax bracket defined as income that’s above $320,000. The fact that it doesn’t tax capital gains is another key factor that makes investing in the country to be considered as appealing to foreigners. Working with a tax expert for income tax filing makes it possible for one to benefit from eligible tax reliefs.

In Singapore foreign income is not generally taxed even if it’s remitted in Singapore for example, rent income earned from a property that’s not in Singapore is not viable for tax. However, if you have a registered company in Singapore it’s important to note that all of your trade income will be subject to tax in Singapore. Working with a reputable firm for tax filing services can greatly help with ensuring compliance. The Inland Authority of Singapore (IRAS) uses the below Singapore tax system;

Tax Residency and Tax Rates

It’s advisable that one gets to determine the status of their tax residency in Singapore as this has the potential of affecting not just the amount of tax that one gets to pay but also the types of tax exemptions and reliefs that one can claim. When working with a tax expert in Singapore to help with tax filing, you will be well versed with the various deductions that can help with lowering the tax amount that you’re likely to pay.

Tax residency is normally determined by both quantitative test which refers to one’s physical presence in Singapore and qualitative test which implies to the social and economic ties that one might be having in Singapore such as social and economic ties, permanent of stay, family ties and employment. One can either be a resident or nonresident of Singapore based on a number of issues.

One is considered a resident in Singapore if they have either stayed or worked in the country for at least 183 days within a calendar year. One is also considered a resident if they have either stayed or worked in Singapore for two continuous years or for three consecutive years continuously.

Tax Planning Tips

To effectively have a clear tax planning in place, it’s advisable that you engage a corporate service provider in Singapore. With a reputable tax expert in place, you will be able to gain from this basic taxation tips;

  • You will be able to maximize the use of available tax reliefs.
  • You will easily know whether you qualify for not ordinarily resident scheme and other tax benefits.
  • If you’re a foreigner, you will get to know how to review your country’s double tax agreement with Singapore so as to check what income might be exempt in Singapore.
  • You will also be able to know whether you qualify for the area representative scheme.

Originally published by onestop-audit.com