Accounting, Taxation & Filing

    Under the Companies Act, all Singapore-incorporated companies need to prepare and present financial statements that comply with the Singapore Financial Reporting Standards (SFRS). The SFRS, on the other hand, is based closely on the International Financial Reporting Standards (IFRS) that are issued by the International Accounting Standards Board (IASB). Find out more here.

    Under the Companies Act, a private limited company is required to appoint an auditor within 3 months from the date of incorporation, unless it is a Small Entity (SE). Your company qualifies as an SE if it meets at least 2 of the 3 following criteria: (i) total annual revenue ≤ SGD10m; (ii) total assets ≤ SGD10m; and/or (iii) no. of employees ≤ 50. Find out more here.

    If your company is an SE and exempted from audit requirements, it only needs to file unaudited financial statements in the form of Annual Return with ACRA. Find out more here.

    Singapore-incorporated companies need to prepare the following financial statements: Report of Director, Statement by Directors, Statement of Comprehensive Income, Statement of Financial Position, Statement of Change in Equity, Statement of Cash Flow, and Notes to the Financial Statements. Companies must also hold their Annual General Meeting (AGM), and the statements must be presented at the meeting. The Annual Return must be filed with the Registrar within 30 days after the AGM. Find out more here.

    Since 2010, Singapore's corporate income tax rate has been pegged at a flat rate of 17%. However, there are various tax incentives granted by the government for startups that lower the effective tax payable considerably. For instance, a Singapore-incorporated company does not have to pay any tax on the first SGD100,000 taxable income for the first 3 years if they meet certain criteria. Find out more here.

    Singapore adopts a progressive personal income tax system that ranges from 0% for the first SGD20,000 to 22% for income above SGD320,000. Capital gains, income earned overseas and dividends received from a Singapore company is not subject to personal tax in Singapore. Find out more here.

    Singapore companies are required to declare their revenue amount and Estimated Chargeable Income (ECI) by filing an ECI form with the Inland Revenue Authority of Singapore (IRAS) within 3 months of the Financial Year End for the company. Subsequent to the filing of ECI, they are also required to submit its annual Income Tax Return with IRAS by November 30. Find out more here.

    Absolutely! VOPlus offers an array of accounting, tax and annual filing services that are suited for SMEs. Find out more here.