Apart from certain types of income sources, income earned in Singapore generally is taxable. Income from employment, business, property, investment, and annuity are some of the types of income sources you may have received. Before you learn how you can reduce your personal income tax, it is very important as an individual to understand, accurately declare and know the tax percentage of your taxable income. 

WHAT IS SINGAPORE RESIDENT INCOME TAX RATES YA2020?

Income tax rate table by IRAS

If your spouse and you belong to income earner of at least $80,000 per annual, then congratulations. This means you are earning above the national average household income. In year 2020, the average household income in Singapore apparently is $9,189. On the other hand, this also means your spouse and you will need to incur 11.5% tax rate for the amount you received above $80,000. Fortunately, the government provides different tax relief schemes that you could tap onto.

HOW CAN YOU REDUCE YOUR PERSONAL INCOME TAX?

Summary

Apart from the above, there are definitely many more tax reliefs designed by the government to cater to a different group of individuals. These tax relief schemes are designed for different needs. For example, contribution to CPF Special Account helps you with your retirement and Medisave allows you to offset your medical insurance and bills. With the right knowledge, you can definitely benefit more while reducing your taxable income. Do email us at support@forbis.com.sg if you have more questions or go to our Forbis Accounting website and we will be glad to share more with you.

WHEN DO YOU NEED TO ENGAGE A CORPORATE SERVICE PROVIDER?

Entrepreneurship is what we commonly understand as the process of creating a new enterprise and bearing any of its risks, with the view of making a profit. However, there are certain challenges an entrepreneur or a corporate need to deal with when they perform their businesses.

A corporate service provider (CSP) could definitely assist in most areas of company structures and mitigate many challenges faced by an entrepreneur or any type of business. These challenges are usually in the form of one or more of the following factors:

1) Insufficient Knowledge & Experiences

There will always be new rules and regulations, changes to policies, updates on procedures, etc. CSP focuses on research, study, and analyze all of this information daily. These daily routines train CSP to be very specialized in handling all the paperwork needed that complies with government regulations. Do you think it will be easy to remember, prepare all the documents and be as effective to implement as a corporate service provider?

2) Business Operational Costs

Administrative, Human Resource, Accounting, and many different roles are essential to ensure a smooth company business operation. There are even other costs such as office & IT equipment, technology subscriptions and etc.  All of these costs, unfortunately, do not generate any sales to the company. CSP covers most of the essential roles and activities in a company. Imagine if you need to hire one person for each role such as administrative, human resource, and accounting. Do you think these expenses will be as cost-effective as a corporate service provider?

3) Limited Time

No matter which industry a business is in, it is very important for any entrepreneur or company to focus its time to research, analyze and come up with a strategy to increase its revenue. Do you think you have sufficient time to develop your business and generate enough revenue?

HOW DOES A CORPORATE SERVICES PROVIDER HELP YOU?

A corporate service provider (CSP) is a professional business entity that has a professional license issued by the government to assist any company with its administrative, human resource, and financial activities. The corporate service provider needs to ensure that these company’s activities comply with the relevant government body and its latest rules and regulations.

SUMMARY

There can be many different areas a Corporate Service Provider (CSP) can provide a company with. The experiences and expertise CSP have will definitely help any company to ease its non-generating revenue work load. In return, the company can allocate more of its resources to its business development area for more growth. On that final note, take more time to understand and analyze in which area(s) your company’s operation needs help with and carefully weigh the opportunity costs before you engage CSP. Here is the link if you would like to know more.