Tax, Legal & Compliance Regime

Tax

After your first year in business, corporate income tax will need to be paid. Usually in March (three months after the financial year end), you have to do a ‘voorlopige aangifte’ or Estimated Chargeable Income (ECI). Before 30 November you should pay your tax. You are responsible yourself for the submission.

 

The IRAS (Inland Revenue Authority of Singapore) is comparable with the Dutch ‘Belastingdienst’. Read more…

 

Whether you are an entrepreneur or an employee, you or your employer will pay your gross salary. Beware to save the tax part, so you can pay this in March of each year. When you are your own boss, you have to provide yourself with a salary slip. The IRIS will have a standard format for this.

 

GST

GST – Goods and Services Tax, is known as the Value Added Tax (VAT) or our Dutch ‘BTW’ (Belasting over de Toegevoegde Waarde). When your turnover is more than $1 million, your business will have to register for GST. Read more…

 

CPF

You may need to know more about The Central Provident Fund (CPF), which you can compare to our Dutch ‘AOW’ (Algemene Ouderdomswet).

The CPF is a comprehensive social security system that enables working Singapore Citizens and Permanent Residents to set aside funds for retirement. It also addresses healthcare, home ownership, family protection and asset enhancement.” Read more…

 

Your company’s CPF Submission number is the UEN plus CPF code, a total of 14 or 15 signs. You can easily obtain this from the CPF website. You will need this when you have employees. As a Dutch owner of a Sole Proprietorship, without employees, you won’t need this. Read more…

 

Legal

Be aware that you not only translate your Dutch contract, but also convert them to the Singaporean law. Because The Netherlands and Singapore don’t have an Exchange Treaty, your counterpart cannot be sued in the unfortunately event you will end up in court.

 

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Compliance

To be compliant with the Singaporean law, a private limited should have an annual stakeholders meeting and as a result, minutes of that meeting and upload their financial figures to ACRA. In addition, you will have to have an Audit. For more information, check the ACRA website.

 

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