Companies in Singapore must file their tax returns annually, and the process can be taxing and time-consuming
Singapore companies must file their corporate tax returns to fulfil their financial obligations. Furthermore, Singapore companies can tap on various government grants and incentives to lower corporate taxes to an even greater extent.
The Government provides tax incentives to companies in Singapore and the companies must ensure that they file their tax returns on time with all the necessary documentation. The company must file its estimated taxable income (ECI) within three months after the end of its financial year. Tax returns for the final year are due on 30 November. For businesses with limited resources, preparing tax-related documentation can be challenging.
Companies should outsource corporate tax filing to remain compliant with tax laws and focus on growing their business. Singapore tax service providers may assist businesses with their tax compliance requirements and allow them to focus on expanding their business.
The following are some of how Singapore businesses can benefit from outsourcing tax compliance:
Singapore tax agents assist in the collection of data for tax purposes
End-of-year is a busy time for the finance and accounting executives in-house.
Their responsibilities include the following:
(i) Compilation of financial information from the previous financial year;
(ii) Plan the budget for the following financial year;
(iii) Preparation of the Estimated Chargeable Income (ECI) filing; and
(iv) submitting corporate tax returns on time.
It may not be possible for the in-house finance team to collect the necessary data to maximize Singapore tax savings. Due to this, it may not be feasible to collect the necessary information before closing the books.
In Singapore, an accounting firm provides tax preparation services that include the compilation, organization, and sorting of data throughout the year. Thus, the in-house finance department can easily retrieve the information required for tax purposes.
Tax agents prepare tax returns in accordance with Singapore tax law
The tax laws in Singapore are constantly evolving to keep up with industry trends and national objectives. The finance team and the in-house accountants must remain current with Singapore tax legislation.
In addition, they are also responsible for fulfilling other financial responsibilities and obligations of their parent companies. Outsourced accounting firms provide accounting and tax services to a wide range of SME clients. In addition, updated information on corporate tax adjustments affecting businesses is available from them.
As well, Singapore accounting firms normally advise their clients regarding how new tax directives may affect them. Outsourced tax agents can provide finance departments with in-depth tax insight. Furthermore, they need not worry about taxes or compliance when outsourcing their tax preparation to a Singapore tax agent.
Singapore tax agent ensures the security of financial data regarding sensitive tax matters
Singapore companies must file their corporate tax returns promptly to IRAS. However, it may prove challenging for businesses in Singapore to strike a balance between data security and accessibility.
During peak seasons, accounting professionals may need to access data rapidly to meet tight deadlines. Unfortunately, these data remain vulnerable due to unencrypted networks and devices.
Singapore corporations must file their taxes annually; however, the process can be complex and time-consuming. By reducing their annual compliance burden, businesses can expand their business instead of complying with government regulations.
Singapore tax agents ensure that the data in the tax returns are accurate
It requires great attention to detail to file corporate tax returns with IRAS in Singapore.
Additionally, accountants should have a thorough understanding of tax laws to manage different situations during the course of the financial year.It may be difficult for businesses to achieve such thoroughness internally when they do their bookkeeping, administrative and financial tasks in-house.
Those companies that provide accounting services to external clients also provide regulatory filing services, thereby minimizing the possibility of errors. Outsourcing tax compliance services can also help Singapore businesses avoid repercussions and penalties.
Accounting firm provides tax compliance services to Singapore companies
Value creation is vital in markets like Singapore, where industry players strive to achieve excellence locally and regionally. A corporate tax return can also take a substantial amount of time to complete. A Singapore tax agent can handle this process more efficiently due to its time-saving nature.
For small and growing businesses, business development and value creation are critical. It is easier to locate necessary source documents when companies outsource their tax returns functions to a business outsourcing firm. Outsourcing corporate tax can increase your productivity and allow your finance executives to focus on other internal activities.
Our Company Tax team will contact you to discuss your enquiry in further detail after receiving your enquiry via Contact Us.