The Importance of Tax Compliance and Consultation in Singapore

Singapore is the central economic hub of the Southeast Asian region with pro-business initiatives, ever growing and evolving. Mega multinational companies have taken abode in Singapore and attract younger entrepreneurs to play a part in its vivid economy. For such an economic super power to prosper there is a back hand push that makes it what it is. The tax policy of Singapore is not only very flexible for its people but also contributes to the public expenditure vastly.

Tax compliance fundamentally means complying, in all respects, to the payment of the tax in the allotted time e.g. filling forms with the required format and the point to which a taxpayer adheres to it in the allotted time period. In Singapore, it is rare for companies and business owners to not adhere to these requirements. Some file taxes on their own and some outsource it to a Singapore tax consultant firm or service. Compliance of tax is taken very seriously by the Singapore government and is one of the reasons why the economy of Singapore has been flourishing globally. It is no secret that more people want to start businesses in Singapore because of its friendly and flexible tax policies. It is a personal favorite of both entrepreneurs and businessmen alike because of this very reason.

IRAS, or the Inland Revenue Authority of Singapore, is responsible for all tax related matters of the country. It comes under the ministry of finance of Singapore and has single handedly dealt with all tax matters successfully for the last two decades. Singapore follows the fiscal policy, the two branches of which are the government expenditure and tax. The basic objective of the fiscal policy is to boost and sustain the economic growth of the nation. In order to keep the public expenditure running smoothly it is very important to collect the revenue that is generated from these taxes. The different types of taxes that the people pay in the country are:

  • Income tax for Corporates
  • Income tax for personal
  • Tax on Goods and Services
  • Tax on property
  • Stamp duty
  • Betting taxes

IRAS requires the payment of these taxes to be done on time and filled with the asked format. Like in every other nation, failing to do so, is a punishable crime. The tax that is imposed, must be paid by the citizens of the respective nation.

Tax consultation is the advisory role that is taken by people or companies that guide how tax must be paid, what legal requirements are to be made and how the taxpayer can go through the process in the most efficient and straight forward way possible. There are many good companies in Singapore that offer such thorough information about tax payments to both large and small companies. It’s all in the matter of choosing which consultant firm suits the business better. For a tax consultancy to be on the top of its game it is important that it knows all the tax policies of the country, laws and legal requirements. By having a background knowledge of all these basic policies, the tax consultancy can offer better and the most stress-free advice on how tax compliance can be done.