The Inland Revenue Authority of Singapore (IRAS) allows as an administrative concession, service companies providing services to related parties only to compute their chargeable income based on a 5% mark-up on total (direct, indirect, and operating) costs, without any tax adjustments (i.e. applying the CM basis of assessment).
Accounting standards are developed in the public interest to support a country’s corporate governance and financial reporting framework. This extends to most parts of the world in order to help a country maintain financial order. The International Accounting Standards Board (IASB) is an independent, accounting standard-setting body of the International Financial Reporting Standards (IFRS) Foundation […]
Benefits of Mergers and Acquisitions – Is It Time for Your Business? With unpredictable market behaviour these days, how a business performs is unknown. As such, mergers and acquisition are a common and frequent occurrence. Mergers and acquisitions help you to get quality staff or additional skills. When a merger takes place, two separate companies […]
How to Incorporate a Business in Singapore If you want to start a business in Singapore, you must first decide whether you want a sole proprietorship, a partnership, or a limited liability company. For entrepreneurs, the most popular choice is a limited liability company, as it is considered to be a separate legal entity from […]
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Accounting firms are abound in Singapore because of its reputation as an established global business hub. Whilst all accounting firms aim to assist companies with focussing on their bigger goals and strategies, there are those that particularly deliver a professional service that sets them apart from the rest.
Changes on statutory requirements for Annual General Meetings (AGMs) and the filing of Annual Returns (ARs).
The following legislative changes in relation to the AGM and filing of ARs will take effect from 31 August 2018.
This is part of on-going efforts to keep Singapore business friendly and competitive as well as to reduce the regulatory burden of companies.
On 31 March 2017, several revisions were made to Singapore’s Companies Act (Cap.50). The purpose of these amendments is to keep Singapore’s corporate regulatory regime robust and to reflect ongoing efforts by the government to support Singapore’s growth as a global hub for business and investors.
Update 1: Changes to requirements for locally incorporated companies and foreign companies registered in Singapore – when it comes to maintaining registers of controllers at prescribed places
From YA2018, companies are required to complete a “Form for reporting of related party transactions” (RPT Form) as part of the corporate income tax return (Form C) submission if the value of RPT in the audited accounts for YA 2018 exceeds S$15m.
The value of RPT is the sum total of
all RPT (local and cross-border) reported in the income statement, excluding compensation paid to key management personnel and dividends and
year-end balances of loans and non-trade amounts due to or from all related parties.
An implementation guide for employers and HR practitioners
In 2014, the International Accounting Standards Board (IASB) issued IFRS 9 Financial Instruments to replace IAS 39 Financial Instruments: Recognition and Measurement, which was subsequently issued by the Singapore Accounting Standards Council (ASC) as Financial Reporting Standards (FRS) 109 Financial Instruments. This standard introduces an expected credit loss (ECL) impairment approach that eliminate the threshold that was in IAS 39. FRS 109 applies for annual periods beginning on or after 1 January 2018.