We aim to help you maximum your benefits within the tax framework. Our services include both personal and corporate tax compliance and consulting. We will advise you how to obtain the optimum tax benefits. We also offer full compliance on all levels, while ensuring you meet proper deadlines and guidelines.
Our tax specialists even feature timely and pertinent advice on securing optimum tax benefits. Some of the tax and investment incentives include accelerated capital allowances, double deduction of qualifying expenses.
Our full range of tax services include:
Scope of Tax Compliance Services
Preparation of withholding tax form:
Attendance to tax inquiries from the Company and/or the Comptroller of Income tax
Declaration of dividends:
Goods and Services Tax related matters:
Computation of Estimated Chargeable Income based on management accounts
Request for mitigation or reduction of late payment penalties
Application for Tax Incentive
Other Tax Incentives
The Singapore government provides a host of tax incentives designed to drive economic activities and business capabilities in Singapore. These are generally available for a wide range of industries with various qualifying conditions. The below table briefly illustrates some of these incentives for Singapore tax resident companies.
IRAS Assisted Self-help Kit(GST ASK)
It is not uncommon to have errors in GST reporting. Errors may occur at the transaction point or reporting point. Incorrect treatment of chargeable, exempted or zero-rated supplies made, may result in transaction errors. Miscomputation or incorrect recording of values from source documents may result in reporting errors. In order to ensure an error free GST compliance, the Inland Revenue Authority of Singapore (IRAS) introduced the GST Assisted Self-help Kit (ASK) initiative in April 2010 as a self-assessment package to help GST-registered businesses (GRBs). GST ASK is a self-appraisal exercise to help the GRBs verify the accuracy of their GST returns and help them manage their compliance. It helps to identify GST errors committed by GRBs and helps them qualify for concessions available under the Voluntary Disclosure Programme (VDP).
Key Aspects of ASK
ASK is a self-assessment package that focuses on three key aspects:
What if Errors are Uncovered in the review?
IRAS will waive the 5% late payment penalty if businesses undertake the ASK Annual Review to voluntarily disclose past error(s) within one year from the statutory filing date of their last GST return in respect of the financial year reviewed.
For businesses which do not adopt ASK, the penalty will be waived only if the voluntary disclosure was made within one year from the statutory filing deadline of each GST return.
This means that businesses adopting ASK Annual Review may enjoy a longer grace period for disclosure of errors. This is provided that all the qualifying conditions under the Voluntary Disclosure Programme (VDP) are met and the situation does not fall within the specific exclusions from the programme.
For voluntary disclosures made after the one-year grace period, IRAS will impose a reduced penalty of 5% of tax undercharged if the conditions under the VDP are met.
Administrative Concessions for common errors disclosed through the ASK Annual Review
To provide greater transparency and certainty to businesses, a list of administrative concessions for common errors disclosed through the ASK reviews is published in this guide. There is no need to seek the Comptroller’s approval to enjoy any of these administrative concessions. Instead, businesses are to self-assess if their errors fall within the scenarios described and that the conditions (if any) specified are satisfied before adopting the administrative concessions.
Benefits of adopting ASK
GST-registered businesses which adopt ASK will enjoy the following benefits:
Is IRAS ASK Certification Mandatory?
ASK is compulsory when you are applying for the following GST Schemes:
Renewing GST Schemes
ASK is compulsory when you are renewing the following GST Schemes:
ASK Annual Review
One of the qualifying conditions for these GST schemes is that businesses have to perform a self-review using ASK and submit the ASK: Declaration Form on Completing Annual Review & Voluntary Disclosure of Errors.
The ASK Annual Review must either be performed by:
The ATA (GST) or ATP (GST) may either be an in-house staff or external party. Your staff may apply to be an accredited tax professional with the SIATP if he meets the requirements of passing the relevant examinations and having acquired the relevant experience.
An Accredited Tax Advisor or Accredited Tax Practitioner with the SIATP would have the expertise and experience to assist businesses to better manage their tax affairs.
Steps Involved in GST ASK Review
ASK Annual Review Process is a 5-step process. The subsequent paragraphs give details of the objective and requirements of each step.
Why Engage Us?
Major Exporter Scheme (MES)
JDT can offer advisory and certification services to GST registered clients who wish to apply for and/or renew their Major Exporter Scheme (MES).
What is MES?
GST is charged on nearly all supplies of goods and services in Singapore and on the importation of most goods into Singapore. Singapore Customs collects GST at the point of importation. On the other hand, MES is a scheme whereby GST payment is suspended at the point of importation of goods. MES businesses are allowed to import non-dutiable goods without paying GST to the Singapore Customs.
GST registered businesses applying for and/or renewing their MES, will have to submit a Declaration Form on “Completing Annual Review & Voluntary Disclosure of Errors”. Such declaration has to be certified by a tax professional who are either “Accredited Tax Practitioners” or “Accredited Tax Advisors”.
JDT has its own in-house Accredited Tax Advisor to assist you in the certification so as to meet the regulators’ requirements.
Transfer Pricing Services
Most jurisdictions with transfer pricing regimes require businesses with related party transactions to prepare and retain documentation supporting the arm’s length nature of these transactions.
Similarly, Singapore introduced compulsory transfer pricing documentation from the year of assessment (YA) 2019. A new penalty regime was included for non-compliance with the transfer pricing documentation requirements.
Assess your transfer pricing obligations in Singapore
Obligation to comply with the arm’s length principle
A Singapore taxpayer that enters into a controlled transaction (domestic or cross border) is obliged to comply with the arm’s length principle regardless of the type of transaction or value. There is no exemption from following the arm’s length principle.
Obligations to prepare Transfer Pricing Documentation in Singapore
TP documentation is expected to be prepared by taxpayers who entered into related party transactions to show evidence on how the price is in line with the arm’s length principle.
The requirements to prepare transfer pricing documentation are specified in Section 34F of the Income Tax Act (“TP Documentation Rules”), which is effective from Year of Assessment 2019. As per the Singapore Transfer Pricing Guidelines, the transfer pricing documentation must be prepared for the related party transactions undertaken in a basis period when either of these two conditions is met:
a. The gross revenue from trade or business for the basis period concerned is more than S$10 million; or
b. The company is required to prepare transfer pricing documentation for a previous basis period.
The transfer pricing documentation in Singapore should include information of companies as prescribed in the TP Documentation Rules that covers:
a. An overview of the group in which the taxpayer is a member relevant to the business operations in Singapore; and
b. The taxpayer's business and the transactions with its related parties, including functional analysis and transfer pricing analysis.
Be informed on the penalties that are imposed for any transfer pricing non-compliance
IRAS imposes penalties for (1) non-compliance with arm’s length principle and (2) non-compliance with transfer pricing documentation requirement.
5% Non-compliance with arm’s length principle surcharge on TP adjustments regardless of whether there is tax payable.
Non-compliance with transfer pricing documentation of S$10,000
for the following offences: 1) Failure to prepare TP documentation by the time for the making of the tax return 2) Failure to prepare transfer pricing documentation with the details and in the form and content as prescribed by the TP Documentation Rules 3) Failure to retain TP documentation for a period of at least 5 years 4) Failure to submit TP documentation within 30 days from a request by IRAS 5) Providing TP documentation that is false or misleading.
The non-compliance offence applies to every offence. Therefore, if a taxpayer does not prepare TP Documentation for one basis period or more, the fine applies to each year. For example, a company that is required to prepare TP Documentation but fail to prepare it for YA 2019, YA 2020 and YA 2021. The non-compliance fine will be SG$10,000 per year for a total for SG$30,000.
How can we help?
We can assist with the preparation of transfer pricing documentation locally and regionally, Master File and Local File, local, regional and global benchmarking.