4 ways how accounting firms can help in filing annual income tax
Each year, a lot of aspiring business owners set up new ventures backed up with innovative knowledge. However, not all small businesses with feasible value plans succeed. In Singapore, some of the primary reasons why several businesses fail are because they miss tracking finance and because of bad cash flow management. In turn, this leads to possibly the biggest reason for a business to fail.
After deciding to outsource your statutory compliance and accounting functions, like bookkeeping, financial accounting, you need to find the right accounting firms in Singapore to balance your budget with the current demands of your business as well as to file for your annual income tax. To give you an overview of how you can benefit from outsourcing affordable accounting services Singapore price, here are four ways how accounting firms can help in filing annual income tax.
Prepare and audit income tax
The IRAS uses a risk-based strategy to determine other risks for compliance and highlight improvement on the taxpayers’ behaviors who may bring a higher risk of non-compliance. It also prioritizes and tailors specific compliance programs that aim to identify taxpayers who have made mistakes in their tax returns, create an audit presence in the community to inform taxpayers on their tax obligations, identify non-compliance by other taxpayers, how to comply with these, and identify areas of tax processes, regulations, and policies where the tax system can be simplified.
Submit annual income tax returns
The tax legislation in Singapore is continuously changing, as the IRAS is trying to streamline the procedures for filing all kinds of tax returns. If you outsource from affordable accounting services Singapore price agency, you will have an expert accountant that can manage all these aspects, which is vital for small and medium-sized businesses which symbolizes one of the most significant categories of industries in the Singapore market. With the help of an accountant in accounting firms in Singapore, a company doesn’t need to think about being compliant with all the new criteria introduced by the IRAS.
You can outsource affordable accounting services Singapore price to an agency so you have someone to remind you that one of the latest updates in the tax legislation in the country involves the filing of financial statements in the XBRL format. It is currently a required criteria for all forms of Singapore businesses, that is why the demand for benefiting from an outside accounting firm has improved in the last period.
Many firms offer low accounting services Singapore price to help manage the filing and compilation of financial statements for businesses that do not need to be audited. An accumulated financial statement conveys the collection of comprehensive income statements, the director’s report, the balance sheet, and cash flow statements.
Obtain tax incentives
One of the main reasons foreign investors choose Singapore to set up companies is related to the many tax incentives available here. If you want to acquire tax incentives, specialized assistance from accountants from accounting firms in Singapore who are acquainted with the processes of benefitting the most from them is suggested.
Below are some of the incentives available for Singapore companies:
- Different incentives for the businesses in the financial industry can qualify for less corporate tax rates.
- the Intellectual Property Development Incentive which provides for a reduced rate of 5% or 10% on the sale of certain intellectual property rights;
- Businesses can acquire investment allowance under the tax exemptions of profits for up to five years;
- the development and internationalization incentive which can lead to a reduced corporate tax rate of 5% for a period of up to 10 years;
- the pioneer tax incentive which is available for manufacturing companies that can obtain tax exemptions ranging from 5 to 15 years on qualifying products and services;
Submit appeals and objections if any arise
Sometimes, you can’t object to the property tax rates because they are the standard rates based on the occupancy status of the property (owner-occupied or non-owner-occupied). However, you can object to the Annual Value. To file an objection, an accountant from accounting firms in Singapore can use IRAS e-Service.
In your objection, you need to state your desired AV, effective date, and the grounds of your objection, including any evidence to support your desired AV.
The following are not valid grounds for objections:
- Financial hardship.
- There is no rental income as the property is owner-occupied.
- Tax rates are too high.
Hire an accounting firm
Singapore is usually known as the leading example of countries that keeps on introducing various tax incentives and reducing corporate income tax rates to attract and keep global investments. Hire your accountant from WLP Group. We have expert accountants who have years of experience working with small to large companies in Singapore.
If you have questions about accounting firms in Singapore, our specialists can answer all of them. Our accountants can assist you in a wide range of accounting matters. Visit our website and book a free consultation with one of our representatives to know our accounting services Singapore price and other details.