IN.CORP Communiqué Vol. 4 I April 2016 I Highlights Regulatory updates - Budget 2016 - An Overview - IRAS - Upcoming Due Dates Key filing reminders Solution Areas in focus - XBRL filing - Personal Tax filing In.Telligent Corporate Solutions IN.CORP GROUP OF COMPANIES One Raffles Place #41-01 Singapore 048616 www.indotcorp.com, www.rafflescorporate.com enquiry@indotcorp.com, singapore@rafflescorporate.com
OUR IDENTITY Singapore headquartered corporate solutions provider specializing in corporate compliance, accounting, taxation, incorporation and expansion advisory services. WHAT WE DO We are a Pan Asian, full-service professional services firm working with our corporate clients in connecting the Dots for their International expansion journey Solutions across the organizational lifecycle Before the Setup During the Setup Phase During the Steady State And Beyond Whether it is an organic expansion or an M&A driven growth, we assist our clients in providing customized solutions as they start their International expansion journey including due diligence, search packages, valuation and market advisory. Services Portfolio INCORPORATION We assist our clients in incorporating their businesses entities, setting up registered offices, providing qualified directors and establishing every aspect of local administration around payroll, tax registration, banking set up etc. Our clients also rely on us for all their Compliance needs ranging from Accounting & Reporting, Company secretarial requirements, Taxation, Legal administration etc. Business and Company formation services Advisory comprehensive market entry analysis We have a team of industry experts that can work with the clients connecting them with the opportunity: whether this opportunity is in the form of expansion capital or potential merger. COMPLIANCE Advisory comprehensive market entry analysis Nominee services ACCOUNTING Accounting and Finance oustsourcing Special projects Payroll TAXATION Tax planning and structuring Tax filing IMMIGRATION Immigration advisory EP Filings/renewals/cancellations Human capital expansion SOLUTIONS & ADVISORY Banking liaison Treasury advisory M&A & corporate consultancy Tax advisory IP/Trademark filing Compliance advisory International expansion advisory LEGAL & FIDUCIARY Connect clients with legal and fiduciary service providers Why Choose Us? Knowledge centric, One stop solution provider From incorporation to consulting Why Choose Us Professionally diverse management team. Deep knowledge of industry and compliance Value added services portfolio Regional service offering Excellent client relationships and successful track record Responsive, diligent and collaborative Write to us: enquiry@indotcorp.com singapore@rafflescorporate.com
1 IMPORTANT UPDATES BUDGET 2016 - OVERVIEW Budget 2016 has focused on addressing economic challenges amidst uncertainty in the global market and heightened market volatility; Recognizing the impact of these external developments on Singapore s open economy, Budget contains measures that address both the strong headwinds that are expected from the weakness in the global economy as well as the need for fundamental changes to transform the local economy in a step towards boosting economic expansion and innovation: Enhancing the Corporate Income Tax Rebate to help companies, especially the Small and Medium Enterprises ( SMEs ), the Corporate Income Tax rebate will be raised to 50% for YA 2016 and YA 2017, subject to a cap of $20,000 rebate per YA. Introducing a cap of $80,000 on personal income tax reliefs - the total amount of personal income tax reliefs that an individual can claim will be capped at $80,000 per Year of Assessment (YA), to be effective from YA 2018. SME Working Capital Loan Scheme for daily operations / automation and upgrading of factory and equipment up to $ 300,000 for local SMEs. Double Tax Deduction for Internationalisation (DTDi) o o The DTDi scheme introduced to encourage Singapore businesses to venture abroad while claiming 200% tax deduction on qualifying expenditure incurred has been extended for 4 years from 1 st April, 2016 to 31 st March, 2020. The existing automatic double tax deduction on expenses up to $ 100,000 will also be extended to qualifying expenditure during the same period. Removing the tax concession of taxing only 20% of the value on home leave passages for expatriate employees with effect from YA 2018. Anti-avoidance rule for Intellectual Property Rights (IPR) transfers to clearly allow the IRAS to pursue pricing adjustments for IPR transactions. The rule is meant to apply to acquisitions, sales, transfers or assignments of IPRs made from 25 th March, 2016 and is applicable for both related party transactions as well as dealings between unrelated parties. Introducing mandatory electronic-filing ( e-filing ) for CIT returns (including Estimated Chargeable Income, Form C and Form C-S) in stages as follows: YA 2018 Companies with turnover of more than $10mil in YA 2017 YA 2019 Companies with turnover of more than $1mil in YA 2018 YA 2020 All Companies Enhancing the Mergers & Acquisitions (M&A) scheme - To support more M&As, the existing cap for qualifying M&A deals will be doubled from $20m to $40m, such that: o Tax allowance of 25% will be granted for up to $40m of consideration paid for qualifying M&A deals per YA; and o Stamp duty relief will be granted for up to $40m of consideration paid for qualifying M&A deals per financial year. These changes will apply to qualifying M&A deals made from 1 April 2016 to 31 March 2020. Withdrawing the tax exemption on income derived by non-residents trading in Singapore in specified commodities via consignment from YA 2018. Introducing Business and Institution of a Public Character (IPC) Partnership Scheme (BIPS) to further incentivize businesses that take an interest in nurturing societies and communities.
IRAS UPCOMING DUE DATES S. No. Particulars Form No. Due Date 1. Filing of Individual Income Tax (Paper Form) B/B1 15 th April, 2016 2. e-filing of Individual Income Tax (on My Tax B/B1 18 th April, 2016 Portal) 3. e-filing of GST Return (1 st Jan 31 st March) GST F5 30 th April, 2016
2 KEY FILING REMINDERS FOR PRIVATE LIMITED COMPANIES WITH FYE 31 ST JANUARY 2016 The Singapore Companies Act requires all companies to record and maintain proper accounts to be laid at the company s AGM. Each company has to file: Their Annual Returns XBRL (wherever applicable) Corporate Income Tax (Form C or Form C-S) Tax computations where required with or without the required compilation or audited accounts These filings are done with the respective authorities, such as ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore). The graphics below capture the compliance requirements and timelines associated: A. If your Financial Year End ( FYE ) is 31 st January 2016 and this is your first year end. FYE 31 st Jan 2016 First AGM Tax Return Filing WITHIN 3 MONTHS AFTER FYE 18 MONTHS AFTER INCORPORATION WITHIN 1 MONTH OF AGM 30 TH NOVEMBER Submission of ECI 30 th Apr 2016 Filing of Annual Returns B. If your Financial Year End ( FYE ) is 31 st January 2016 and this is NOT your first year end. FYE 31 st Jan 2016 First AGM Tax Return Filing WITHIN 3 MONTHS AFTER FYE 15 MONTHS AFTER PREVIOUS AGM WITHIN 1 MONTH OF AGM 30 TH NOVEMBER Submission of ECI 30 th Apr 2016 Filing of Annual Returns
3 NEW SOLUTION AREAS IN FOCUS XBRL FILING SERVICES What is XBRL? XBRL stands for extensible Business Reporting Language, a language used in computers to present financial statements such that they can be retrieved from online records and transferred directly to users such as auditors, regulators, financial analysts for various purposes. ACRA believes that the use of XBRL will achieve the objectives of facilitating the conduct of business in Singapore, providing more value-added financial information and enhancing the regulatory environment with improved transparency and timely dissemination of relevant financial information. Why outsource to In.Corp / Raffles? To prepare the XBRL financial statements, it requires a deep understanding of accounting concepts and knowledge of Singapore Financial Reporting Standards (SFRS) and SFRS for Small Entities. Since directors of the company are made responsible for the accuracy of any company information that are filed with ACRA, asking someone in the company who is not sufficiently competent with the XBRL filing requirements as specified by ACRA is risky. Who needs to file? a) Insolvent Exempt Private Companies Outsourcing the XBRL filing to In.Corp will remove a huge load off your shoulders when it comes to meeting your company s statutory compliance. b) Private companies with corporation(s) as their shareholder(s)
PERSONAL TAX FILING SERVICES Personal Tax in Singapore The amount of tax you have to pay depends on whether you are: Resident Individual: This individual will enjoy personal reliefs. Do you need any assistance in the preparation of tax returns and tax computations? Income of resident individual will be taxed at an increasing (graduated) rate. Non-Resident Individual: There are no personal reliefs. Employment income will be taxed at 15% or the resident individual rate, whichever gives rise to a higher tax amount. Director s fees, consultation fees & all other income that you had received will be taxed at 20%. When is the Filing Dateline? Other services under our broad spectrum of assistance on personal tax matter: In Singapore, the personal income tax is based on calendar year. That means from 1 January to 31 December. Income is assessed on a preceding year basis. The yearly individual personal tax returns must be lodged with the Inland Revenue Authority of Singapore ( IRAS ) by 15 April in the consecutive year. Application for tax schemes like the Not Ordinarily Resident scheme Assistance to attending to queries from IRAS Application to IRAS for voluntary disclosures of past tax errors / negligence Local personal tax advisory