Entrepreneurs new on the business scene in Singapore feel confident with their new startups, as the business friendly laws of the city facilitate their workings. That being said, they often require aid when it comes to dealing with tax implications so they can minimize their liability. Goods and Services Tax (GST) for instance is a broad-spectrum surcharge levied on domestic use.
While most countries have this as a component of Value Added Tax (VAT), the policies are slightly different in this geographical region.
• Understanding GST
When capital is expended on goods and services for trade purposes in the course of business; all merchandise that is imported into Singapore falls under GST. This can be a little difficult to comprehend for an enterprise new on the scene of Singapore company formation. The good news is that the rate of GST is considerably lesser than almost every other Asian country. It is currently levied at 7% on the total amount of supply.
• Registering for GST
Companies need to register for Goods and Services Tax in case their consumption exceed SGD1 million for any given quarter. It is imperative that you apply inside 30 days of attracting liability for such surcharge. It is even more essential to do so if you are a startup with a new Singapore company registration have been exceeding the norms for the past three consecutive quarters; however, once registered enterprises remain so, for two consecutive years.
A handy perk is that such registration isn’t essential for enterprises with a yearly turnover less than $1 million, which can prove quite beneficial to smaller or less profitable corporations.
While most countries have this as a component of Value Added Tax (VAT), the policies are slightly different in this geographical region.
• Understanding GST
When capital is expended on goods and services for trade purposes in the course of business; all merchandise that is imported into Singapore falls under GST. This can be a little difficult to comprehend for an enterprise new on the scene of Singapore company formation. The good news is that the rate of GST is considerably lesser than almost every other Asian country. It is currently levied at 7% on the total amount of supply.
• Registering for GST
Companies need to register for Goods and Services Tax in case their consumption exceed SGD1 million for any given quarter. It is imperative that you apply inside 30 days of attracting liability for such surcharge. It is even more essential to do so if you are a startup with a new Singapore company registration have been exceeding the norms for the past three consecutive quarters; however, once registered enterprises remain so, for two consecutive years.
A handy perk is that such registration isn’t essential for enterprises with a yearly turnover less than $1 million, which can prove quite beneficial to smaller or less profitable corporations.