3 Tax Schemes To Help Eligible Businesses To Save Money On

3 Tax Schemes To Help Eligible Businesses To Save Money On

Singapore may have one of the lowest business tax regimes in the world. However, for SMEs or small businesses, every dollar counts. As such, it is always good to considering outsourcing your accounting and bookkeeping services to a reputable firm in Singapore, like Ackenting Group. We provide expert tax accounting services, as well as many other financial services to ensure that your business comply to the financial regulations in Singapore and your books are updated at all times.

As a small business, there are many little known tax tips to help you get started in Singapore. Below are a few tax schemes that ensure your business can get established and started right.

The Start-up Tax Exemption Scheme (SUTE)

Introduced in 2005, this scheme was established to encourage the establishment of new ventures and growth of existing local enterprises. Your business could qualify for a tax exemption on a fraction of its chargeable income depending on how long your business has been in operation. This will apply for your company’s first 3 consecutive years of assessment (YA).

Your business qualifies for this exemption if it fulfils these conditions:

  • It is incorporated in Singapore
  • It is a tax-resident in Singapore for that YA
  • Have no more than 20 shareholders (who are all individuals) throughout the basis period for that YA
  • Not engaged in property development or investment holding

After the first 3 YAs, you can still qualify for other schemes such as the Partial Tax Exemption (PTE) scheme.

Wage Credit Scheme (WCS)

First introduced in Budget 2013, and further extended in Budget 2015, the Wage Credit Scheme was established to help small businesses and SMEs through a tough labour market. The scheme ensures that the government will co-fund any wage increase that is given to the employees of a company between the years 2013 to 2020. It is one way to help businesses embark on transformation efforts and promote the sharing of productivity gains with employees.

Here are the eligibility criteria for employers to take note of their employees:

  • Is a Singapore citizen
  • Receives CPF contribution for at least 3 months in the previous year
  • Have been on the company’s payroll for a minimum of 3 months in the qualifying year
  • The employer has increased employee’s total monthly wage by a minimum of $50
  • The employee earns a monthly wage of up to $5,000

As the scheme is taxable, you will be reimbursed by the government for a percentage paid in wage increase that is automatically done by the IRAS. If you need some professional help with regards to any eligible tax schemes, contact a reputable SME accounting services firm like Ackenting Group and we can ensure that you have the financial knowledge to continue growing your business.

Business – IPC Partnership (BIP) Scheme

Under this scheme, your business is eligible to claim 250% tax deduction on qualifying expenditure when your employees volunteer or provide services to recognised Institutions of Public Character (IPC) or public charities.

Subject to the receiving IPC’s agreement, the qualifying expenditure must meet certain requirements such as:

  • Basic wages
  • Incurred due to volunteer services
  • Not reimbursed by the IPCs at any time

In addition to the schemes above, the government has introduced a range of tax-support measures to assist businesses struggling with the COVID-19 pandemic. Rather than let these opportunities pass you by, reach our team at Ackenting Group. We provide essential tax accounting services for your business, helping SMEs make the best financial decisions and reduce any financial risk in the process. Our experienced accountants also deliver accounting and bookkeeping services to ensure every transaction is accounted for and meets the government standard. 

If you require any assistance on accounting services, feel free to drop us an email at johnwoo@ag-singapore.com or contact us at +65-66358767. At Ackenting Group, we offer a complimentary 30 minutes online consultation for us to better understand your business requirements.

div#stuning-header .dfd-stuning-header-bg-container {background-image: url(https://www.ag-singapore.com/wp-content/uploads/pexels-photo-24464-1-2.jpg);background-size: cover;background-position: center center;background-attachment: scroll;background-repeat: no-repeat;}#stuning-header div.page-title-inner {min-height: 550px;}