As your business grows, it is important to look into the tax implications of your transactions.

Cross-border transactions – if you are dealing with cross-border merchants, are you comfortable with your understanding of the withholding tax implications of making such payments?  Whether there are any form of tax credits available?  Have you considered claiming for relief under the double taxation agreements signed between Singapore and other countries?  There is a good chance the withholding tax rate is reduced or zeroised.  What are the filing procedures to claim such reliefs?  Any Goods and Services Tax or Value Added Tax leakages?

Mergers and acquistions – if are intending to purchase a business, have you considered the tax implications of an asset deal or share deal?  How about the tax implications of an amalgamation?  Are your aware that the tax provisions for short-form corporate amalgamation has just been legislated?

Group companies – if you are the owner of a few companies, you may wish to know that Group Relief scheme is available to reduce your current year tax payable.  What would be the most tax efficient order to set off relief?  Also, there could be transfer pricing issues relating to your inter-company recharges or non-recharging.  We will be glad to provide our tax planning suggestions and advice to help you better manage the business.

Business structure - have you done an evaluation of the contracting and holding structure of your business to make sure that it is tax efficient?  Are you aware of specific tax issues such as the following:

Paying remuneration -  have you considered the tax implications of paying sole shareholder/director salaries, director fees, extending interest free loans?  Also, what are the tax implications of stock option remuneration to your staff and employees?

Renovations – are you aware that there are certain provisions in the Singapore Income Tax Act that allow special tax deduction on such expenditure which is otherwise capital and not deductible?  What are the rules and is there any cap?  Are there any tax issues that you should be aware of before you sign on the renovation contract that can maximise your capital allowances claim?  What is the relevance of industrial building allowance claims?

Further deduction - Is your company's accountant claiming the maximum tax deductions for your expenses?  Have you considered the provisions in the Singapore Income Tax Act that allows 150% or further tax deductions on certain expenses?

Excess funds - If your business has excess funds, what would be the tax-efficient way to earn interest?

Research and development costs - Are you aware of the recent developments on this area?  Click here to read how we can assist you if you have such expenses.

Finally, if you are considering applying for tax incentives and government grants, our tax professionals will be most pleased to assist you in strategising and applying to the relevent government agencies.  In particular, we can review and verify your financial projections before they are sent to the Government Agencies for application of tax incentives.

We would be happy to share with you our thoughts on the tax implications of your transactions. Do contact us.