The Importance Of Outsourcing Corporate Services

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By Eagle Ruth

The income tax system in Singapore is friendly to corporations and businesses, so much so that it has made the country an attractive location for all manner of investors. Moreover, Singapore is home to a number of corporate service firms that could help with the ins-and-outs of the Singapore tax system, its rates, and the accounting and audit necessary for businesses within the country. Such companies are also a source of knowledge on IPO and taxation.

There are many types of taxes other than the corporate income tax. These include the property tax, the motor vehicle tax, the foreign worker levy, the stamp duty tax, the betting taxes, the GST (goods and services tax), and the individual income tax. These taxes are quite fair for everyone, making Singapore the famous business hub that it is, due to the system it has in place.

Every business entity in Singapore follows a one-tier tax system. This system exempts dividends from taxation since companies shall pay only the chargeable corporate income tax. This chargeable corporate income tax has been lowered since the year 2000 due to the indirect taxation on goods and services implemented in the year 2000. The fact that a capital gains tax is not part of the tax rates and the presence of tax relief measures make the country the business and investing hub it is today.

True, the income tax system seems simple and straightforward, but it still takes a lot of work to file the forms, to know the rates, to plan it all. For instance, it will take months to prepare a company when it goes public with selling stocks for the first time. Fortunately, business owners in Singapore can hire corporate service firms to file tax returns, manage registrations and update corporate books for cash flow. Such firms also provide expert advice regarding rates and planning.

Outsourcing corporate service companies means entrusting the duties of filing the company tax to the experts. This set up is practical, and Singapore companies that seek to outsource company tax filing prosper. Corporate service firms also provide finance and banking services, accounting, company formation and incorporation, stock market investing, and business advising.

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