Rikvin Provides Singapore GST Services 

A Company that have a complete benefits that help foreign and local entrepreneurs setting their own business in Singapore.

by Joseph Katz Thursday, November 18, 2010
As part of a wise move to continue make business flourishing, the government, through its Inland Revenue Authority of Singapore [IRAS] decided to make a shift from direct to indirect tax. Thus, after the 1986 Economic Committee advisory, the Good and Services Tax [GST] became a value added tax, which means that it levies taxes not on income, but on consumption.

As a consequence, Singapore became a famous investment center, not just in Asia. Its reputation being an attractive avenue to launch a business spreads throughout the Pacific, attracting investors from Canada, Australia, North America, and Russia. Hence, Singapore authenticates its claim being a melting pot as entrepreneurs from across the borders flock to the city-state to do business.

Needless to say, jobs were created, and the economy grows stably.

The government believes that through levying taxes on import of goods and nearly all supplies of goods and services, the citizens are encouraged to save, rather than to squander their hard-earned money.

On April 1, 1994, the IRAS introduced and implemented the GST at a rate of 3% with an assurance that the increase will not occur until after 5 years. Also, the government provided an offset package to help mitigate the GST impact on Singaporean households.

Concurrently, the corporate taxes and income taxes which were set at a marginal rate of 40% before the 1986 Economic Committee Advisory were lowered to 27% for corporate taxes while the top marginal personal income was set at 30%.

Nevertheless, with a belief that such rates were not attractive enough to lure more investors from Asia and beyond and attract world-class talents, the government continues to rely on GST by cutting down direct tax rates. Hence, the top marginal rate for a corporate tax was set at 17% and 20% rate was given for personal income. These direct taxes are progressive, which means that they are lower where income is lower.

However, with the decrease on direct taxes comes the increase in GST to 4% in 2003, 5% in 2004, and 7% on February 2007.

Rikvin, a firm that provides professional services to entrepreneurs on company registration and compliance with requirements such as filing of tax returns and GST registration has a share of its illumination on GST.

“Besides propelling the economic growth, the government was foreseeing the income tax base of Singapore”, which was declining and which would be “too onerous to maintain or enhance the level of social and health services.”

With a broad-based GST, however, the taxation burden is evenly spread among the population. According to Rikvin, among the exemptions from GST are financial services, the sale or lease of residential properties, and export of goods and international services.

Rikvin added, “If your business’s earning exceeds S$1 million from the sale of taxable goods and services, you should register for GST. Nonetheless, this requirement is waived should most of the goods and services are exported or supplied internationally.”

Most businesses including sole proprietorship, partnership, limited liability partnership, companies, clubs, government bodies, NGOs, and statutory boards register for GST to claim back the GST incurred on their business purchases.

Moreover, if the GST paid exceeds, a refund can be collected from IRAS. Further, when the GST rate increases, it would be sensible to make a voluntary registration to collect GST and to claim back the GST made on business-related purchases.

GST registration is part of the services provided by Rikvin. During the process of a company registration, Rikvin listed IRAS as among the government agencies to submit a registration.

There are schemes devised by the government to create a pro-enterprise environment in Singapore. According to Rikvin, these schemes seek to ease the cash flow for businesses.

About the Publisher:
Rikvin, for many years has been helping entrepreneurs in the local and abroad to handle the company registration services in Singapore in their behalf, unless the investors themselves are eligible to initiate the registration.

Among other services, Rikvin specializes in incorporation of a Singapore company, Singapore Gst Services, registration of a new company, accounting and secretarial services as well as compliance with statutory requirements like nominating a resident director.

For more information, visit:
http://www.rikvin.com/
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
Main Lines : (65) 6438 8887
Fax : (65) 6438 2436
Email : info@rikvin.com

Rikvin provides Singapore Company Registration service including securing your Singapore Employment Pass and Singapore EntrePass Visa for Singapore Business Migration.

General | Categories: financial, business
0    submitted by Joseph Katz
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