The Inland Revenue of Singapore recently reported that as many as 120,000 corporate taxpayers, especially the small and medium enterprises, are not aware and hence, not using the tax incentives available to them.
In news report published in the Straits Time on Thursday, 8th October, 2009, (Click here for more info) these SMEs are not familiar with the tax exemptions and concessionary schemes and therefore lose out savings on tax rate.
About 200,000 companies are incorporated in Singapore every year. As part of the measures to promote entrepreneurial growth, the Singapore authorities have introduced various tax exemptions and schemes. The latest tax exemption benefit allows new start-ups a tax exemption on the first S$100,000 of taxable income for each of the first three tax-filing years. Another measure was introduced to help improve cash flow for companies by allowing them to carry any trade losses of up to $200,000 to the previous three years for a tax refund.
Mr Lawrence Leow, president of the Association of Small and Medium Enterprises (Asme), remarked that there has been a lack of awareness with tax schemes and incentives available to SMEs. He said that ASME will consider working with IRAS to educate more corporate taxpayers on these schemes.
Asiabiz has been helping entrepreneurs around the world and locally to incorporate start-ups in Singapore since 1998. As part of our comprehensive accounting and tax services, we help our clients stay current on tax savings available to them. Our accounting specialists are also available to advice to clients on the various exemptions and schemes that would benefit their businesses.
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