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A Comprehensive guide to the Inland Revenue Authority of Singapore (IRAS)
  • Article, Singapore

A Comprehensive guide to the Inland Revenue Authority of Singapore (IRAS)

Singapore is widely recognized for its highly-efficient and competitive tax system, which lets companies, partnership firms, sole proprietor and entrepreneurs (individuals) enjoy low tax rates and several types of tax relief. The Inland Revenue Authority of Singapore (IRAS) is the central tax administrator of the country. It falls under the Ministry of Finance’s authority and operates as a chief tax advisor to the Singaporean government. The IRAS is mainly in charge of collecting taxes. It collects taxes, which account for around 70% of the government’s operating revenue that supports the nation’s economic and social programs. These programs are aimed at achieving an inclusive society and quality growth. All in all, the two main functions of the IRAS is to collect all types of taxes and act as a tax advisor to the state.

As a part of its public engagement, IRAS works with tax agents as partners in administering the Singapore tax system and in facilitating tax compliance. As the main tax authority under the Ministry of Finance, IRAS plays a crucial role in tax policy creation by providing policy inputs in addition to the technical and administrative implications of each policy. IRAS also actively monitors developments in external economic and tax environment to spot areas for policy review and changes. It aims to create a competitive tax environment, which fosters the growth of enterprises in the nation. Other non-revenue operations carried out by IRAS include representing the state in tax treaty negotiations, offering advice on property valuation and drafting of tax legislation.

Types of taxes that the IRAS deals with

Let’s take a look at some of the taxes that the Inland Revenue Authority of Singapore deals with.

Please note that capital gains, inheritance and dividends are not taxed.

Some taxes such as Customs and Excise Duties and Water Conservation Tax are administered by other ministries and not the IRAS.

History of the Inland Revenue Authority of Singapore

To manage the Income Tax Ordinance that was enacted earlier, the Singapore Income Tax Department was unveiled in 1947. The overall tax collected from 1 January 1948 to 31 December 1949 amounted to $33.2 million. Inland Revenue Department was created in 1960 when multiple revenues collected by multiple separate agencies were unified in one centralized place. This paved way for the creation of the Inland Revenue Authority of Singapore.

In 1992, the IRAS was created by legislation as a statutory board under the authority of the Ministry of Finance. It look over the operations that were previously carried out by the Inland Revenue Department.

Structure of the Inland Revenue Authority of Singapore

The IRAS is divided into multiple departments as it deals with both citizens and business organization. Below is a comprehensive flowchart representing the workflow division in the Inland Revenue Authority of Singapore.

How to deal with the Inland Revenue Authority of Singapore?

In order to find out your tax status, one (individuals and business organizations) must sign in to the IRAS personal account called as myTax Portal. Individuals logging in will need their SingPass ID, whereas business/companies accounts will require a CorpPass ID to log in.
It is also possible to connect your accounting software tool to the Inland Revenue Authority of Singapore. To do this, however, the accounting software you use should meet the technical requirements IRAS has set and must make it to this list of approved software meet the technical requirements that the IRAS has established. The software must also make it to this list of approved software applications. There are also other easy ways to manage accounting services in Singapore.

Functions of IRAS

The Inland Revenue Authority of Singapore (IRAS) plays a crucial role in managing all aspects of tax-related inquiries for individuals, businesses, and even international entities. Its primary functions are twofold: (1) overseeing the collection of various taxes and (2) serving as a tax advisory body to the government.

Tax Collection Responsibilities

The IRAS is responsible for:

  • Income Tax: Applied to individuals and companies based on their earnings.
  • Goods and Services Tax (GST): This tax is levied on all goods and services, including imports.
  • Property Tax: Charged to property owners according to the estimated rental values of their properties.
  • Stamp Duty: Imposed on real estate transactions, property-holding entities, and shareholder transactions.
  • Withholding Taxes: Applied to estates held in trust.
  • Duties on Betting and Lotteries: Applied to private lotteries and gaming activities.
  • Casino Taxes: Relevant to clubs and associations operating casinos.
  • Charity Exemptions: Charities are exempt from certain taxes.
  • Tax Exemptions: Dividends, capital gains, and inheritance are generally not taxed.
Explore options for reducing your tax liabilities with startup tax exemptions.

Tax Advisory Role

As Singapore’s main tax advisor, IRAS:

  • Develops Tax Policy: Creates and updates tax policies and works closely with the Ministry of Finance (MOF) to draft relevant tax legislation.
  • Manages Tax Treaties: Facilitates international tax agreements, with approximately one hundred double taxation treaties in place to prevent dual taxation on income.
For detailed guidance on tax matters, IRAS provides essential support and resources to help navigate Singapore’s tax landscape.

How to reach out to and connect with the Inland Revenue Authority of Singapore?

Alternatively, you can also call the IRAS hotline number, email them or visit the office. The helpline operating hours are from Mondays to Fridays – from 8 am to 5 pm (for all enquiries).

If you are looking to speak to a tax officer, then you can find all the relevant helpline numbers by clicking here. https://www.iras.gov.sg/irashome/Contact-Us/Call-us/

Individuals who want to enquire on business registration and business advisory matters can call the below listed numbers:

  • ACRA Helpdesk: 6248 6028
  • Enterprise Infoline: 6898 1800
  • CorpPass Helpdesk: 6643 0577
You can also find answers to common questions by referring to the IRAS’s FAQ section at https://www.iras.gov.sg/irashome/Contact-Us/Call-us/.

In conclusion

Company formation in Singapore is becoming easier as the nation has continued to attract talent from around the globe by offering low personal tax rates. The main focus of the IRAS is to make the process of collecting taxes easy and help in boosting the nation’s economy. Singapore has been adopting several digital strategies to ease the burden of tax reporting to their citizens.

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Know More About Zoho Books Cloud Accounting Implementation & Benefits
  • Article, Singapore

Know More About Zoho Books Cloud Accounting Implementation & Benefits

Singapore is known for transparency in its government and its Accounting policies and procedures. Accounting in Singapore is governed by strict rules, regulations, guidelines, and more that are established by Singapore’s government. Many Singapore-based and international businesses are responding by using accounting software programs that conform to Singapore’s national accounting system. One of these software programs is Zoho books. More about this revolutionary software program will be explained below.

Zoho Books Cloud Accounting

 The Zoho Books accounting software program integrates into the vast cloud network. This keeps your Singaporean-based or international business’s information safe, permanent, and accessible from anywhere. It contains many features and tools that will make it easier for your business to easily conform to and follow Singapore’s vast and strict accounting system, guidelines, rules, and more!

You can keep track of your financial and other business operations through the following features that automate them, keep records of them, and store them on a vast and permanent system (the cloud!)

  • Automating repeat and mundane/standard tasks – these include data entry for statement and account reconciliation, invoices, various financial/accounting statements, and more!
  • Streamlining the tax process – you can simplify the entire process of preparing and tracking tax documents by automating them and putting them online. Now you’ll always know where all your documents are. You’ll also know where you stand in terms of Singapore’s national tax law!
  • Have globally accessible data – when you use an accounting program that is connected to the cloud, you’ll store your information on a network that can be accessed from anywhere!
  • Use your accounting information with other business programs – since accounting is one of the pillar functions of business, it is necessary to integrate it into all of your other business operations. For example, you can integrate Zoho books into leading CRM software programs. This will streamline your billing cycle and operations. It will also make it easier for you to keep track of your sales pipeline, processes, and cycles.
  • You’ll save the environment – by automating your information and placing it on a virtual and global system, you lessen the need for hard copies of your statements and other financial records. This saves trees and the environment. It also eliminates the possibility of losing vital documents, and it helps you better manage your accounting systems and cycles.

Zoho Cloud Accounting Singapore

When you use Zoho Cloud accounting in Singapore, you’ll have access to many features and tools that will give you almost ‘superpower abilities’ in terms of tracking and managing your financial documents and accounting systems. For example, you can instantly create and send out invoices to your customers. This ensures that payment occurs quickly and easily. You can also connect your invoices to be sent out and linked to a system that accepts electronic payments.

You can also do internal account and business management by emailing out regular reports about different and various aspects of company performance. You can improve these metrics through regular meetings with pertinent employees. Zoho offers you access to a dashboard. This provides you with a general overview of all of your business activities and operations from a financial standpoint. You can always ‘be in the loop’ with this valuable feature.

Zoho Accounting Price

Zoho comes in three plans:

  • Basic – this one costs nine dollars a month. You’ll get the following features:
    • Maximum of 50 contacts
    • 2 users
    • 5 automated workflows
    • Bank reconciliation
    • Custom invoices
    • Expense tracking
    • Projects and timesheets
    • Repeat transactions
    • Sales approval Budgeting
    • Zoho sign integration
  • Standard – this will set you back $19 a month. You will get the following features
    • All of the basic plan features
    • Store up to 500 contacts
    • 3 users
    • 10 automated workflows/module
    • Bills
    • Vendor credits
    • Reporting tags
    • Purchase Approval
    • Twillio Integration
  • Professional – you’ll pay $29 a month for the following features/abilities:
    • All standard plan features
    • Store more than 500 contacts
    • Up to 10 people can use
    • 10 automated workflows/modules
    • Purchase orders
    • Sales orders
    • Inventory
    • Custom domain

Zoho Implementation procedure

Follow these steps if you want to start using Zoho in your company:

  • Create a diagram of all of your business and sales processes
  • Filter out anything not related to CRM
  • Import custom fields if you need them
  • Prepare and test your data. Then import it
  • Use Zoho. test the information and the system to see how it works. Fix any bugs immediately.

Zoho Accounting software

 Zoho lets you do the following in relation to Accounting and CRM:

  • Invoicing – you’ll get paid immediately by customizing invoices and sending to your customers electronically
  • Estimates – you can manage your corporate sales budgets by creating professional invoices. You can then send them out to customers immediately
  • Client portal – consolidate your customers’ transactions in an easy to view place and screen. This will give your customers freedom and confidence.
  • Expenses – track your expenses accurately and electronically. You’ll be able to upload receipts. This will keep you ‘on top of the ball’ because you’ll always know who you owe money to and where your sales revenue is going.
  • Bills – automated billing will help you track and manage your accounts receivables
  • Banking – you can easily import and organize all of your banking transactions. This will help your CRM and accounting/financial management systems.
  • Projects – by automating your projects, tasks, timelines, deadlines, deliverables, and more, you’ll always know what your real billing hours are. This translates into more savings and revenue for you.
  • Inventory – you’ll always know the real story with your inventory when you electronically track it. You’ll automatically be informed of stockouts. You’ll also know the speed at which your inventory moves. You can do sales analysis if you automate your inventory.
  • Sales orders – you can automate your sales process. This will allow you to send sales orders and receipts electronically. You can cross-check sales information before shipping orders out to customers.


These are just some of Zoho’s many features that will give you more control over your business processes and operations.

Singapore Zoho Packages

You pay in Singapore dollars for the following packages:

  • Free – you pay nothing for these features and abilities
    • Maximum of 20 subscriptions
    • 1 user
    • Hosted payment pages
    • Works for many currencies
    • Stripe compatible
    • Allows offline payments
    • Measures data related to customer subscriptions
    • 24-hour email customer support on the weekdays
  • Basic – you pay $39 a month. The magic that this package will let you work is:
    • Ability to store up to 500 clients
    • 3 people can use
    • 3 automated workflows/modules
    • All free plan features plus
    • REST API & Webhooks
  • Standard – this sets you back $79 a month, but you’ll get these features:
    • Store up to 2,000 clients
    • 5 people can use
    • 10 automated workflows/module’s
    • All basic plan features plus
    • Web tabs
    • Customer portal sign-on
    • Domain branding
    • Custom buttons
  • Professional – you’ll pay $199 a month for:
    • Store up to 5,000 users
    • 10 people can use
    • 10 automated workflows/modules
    • All Standard plan features plus
    • 24-hour live chat support during the weekdays.

Singapore Zoho subscription

Refer to the previous section for information on this. The Singapore Zoho subscription offers business owners in Singapore access to features that automate crucial business processes and operations. This helps them substantially increase their sales revenue streams and lower their expenses.

Singapore businesses can’t go wrong with Zoho

Indeed, having the Zoho cloud Accounting and CRM program suite is like having a staff of in-house MBA educated consultants working with you. You simply can’t fail in your industry if you choose Zoho.

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How to find a reliable Local sponsor/Local service agent in UAE
  • Article, U.A.E

How to find a reliable Local sponsor/Local service agent in UAE?

9/10 times setting a business in UAE mainland requires a tie up with a local sponsor or a local service. Local Sponsors in Dubai, UAE take care of continuity of the company in UAE. A fact about the Local Sponsor or LSAs is that you cannot expect any civil responsibilities from their end towards the business they are sponsoring. The Local Sponsor could not be held responsible for either achieving soaring profits or the growth of the business. On the contrary, the Local sponsor for business in Dubai ensures to provide facilitation over the business continuity in UAE.

Any foreign company willing to establish a branch in Dubai mainland or other parts of UAE needs to have support from the local service agents in Dubai.


Who are called as Local Service Agents?

Local Sponsors or service agents are UAE nationals, called Emirati who deal especially with the governments’ official and ministry work for the company. They can help in establishing external relations and strengthening the economy of UAE by bringing foreign Investors in the form of new businesses. However, you should be careful about choosing the right Local Sponsor for business in Dubai;

  • If you have a personal contact in the UAE, convince them to become your local sponsor.
  • In case, you do not have someone from UAE by your side, you can seek help from the professional business consultants who in turn suggest reliable local sponsors.
  • Transparency should be the key, as some of the local sponsors may have hidden charges incurred during the contract.
  • Make sure to complete the legal formalities and have everything rightly documented. These documents can include; Contracts, Side agreements and POAs. Managing these well, can help you to protect your business assets in the long run.


Local sponsor in UAE

Many people amongst us get confused among the responsibilities and functions of a local service agent. They could not differentiate between a local service agent and a local sponsor. A local sponsor for business in Dubai is a business partner who is a native Emirati and is willing to sponsor an international firm. The local sponsor will take a significant amount of 51% of the total shares of the company, in lieu of services rendered. In some cases, the company may offer some share of profits. This is a special case with a local sponsor and depends on the agreement made with the sponsor at the time of incorporation. In the case of a Local service agent, the person is provided with an annual fee for a business partnership.

The Local sponsor which is appointed by the foreign companies is generally structured as an LLC (Limited Liability Company). The need of having a local sponsor highly varies upon the company’s structure and nature.


How to find a reliable Local sponsor or LSA?

Now, this is an important thing to get answered. Lots of evidence testifies why there is an acute need of appointing a local sponsor or local service agent for setting up a business in Dubai mainland. Local sponsors for business in Dubai should be reliable and trustworthy so that the branch can rely on them. For Dubai company incorporation and formation, a company can choose an option among individual sponsors, corporate sponsors, and local service agents based on the activity the company will be carrying out. The local sponsor can be an individual or a UAE based company.

Another way from which anyone can come in contact with a professional reliable local sponsor or LSA is through networking. This method is generally recommended. People who own their businesses have particular knowledge about the business flow and operations. No one can rely completely on a random person willing to offer sponsorship services.

It is recommended to opt for local sponsors or agents through consultancy firms as they have presence in the region, are aware of the local laws and obligations and have a reliable network of sponsors they have worked with over the years.

The best locations in UAE for local sponsors are to hire them from major cities such as Dubai and Abu Dhabi. These are the premium locations where big foreign businesses and enterprises love to invest and hence these regions are flooded with locals who are willing to be Local sponsors and service agents.

High profile LSAs are also available but at a little bit premium rates. They generally offer their services via the method of networking and mostly try to provide exclusive services as compared to the local crowd.


Individual or corporate sponsor

Instead of choosing an individual Emirati one can assist a UAE based company. Due to the obvious reason, that via assisting a company, obstacles such as death or retirement may not have any powerful impact on the business flow.

On working with an individual make sure to clear the disputes based on certain assurances related to events like death and retirement. Such assurances give reliability for a longer period.

In the end, you can consider some criteria for choosing the best local partner in the UAE.

  • Any prior experience in sponsorship services.
  • Business background
  • Status in society
  • Native or immigrant UAE based citizen
  • Legal knowledge, especially about procedures of courts of UAE

These sponsors charge the business, according to the type of business and the sponsorship option. In most cases, the average annual sponsorship starts from AED 25,000.

All the agreements between the local service agents or local sponsor and the company should be registered in the concerned courts of Dubai or other parts of UAE. This is the only way by which you can counter in case a legal dispute happens.


Final verdict

Using a local sponsor is not an easy job. In UAE, investors end up getting a reliable trustworthy Local service agent or local sponsor through one of the ways mentioned aboveFew considerations are obvious to mark since not all the random Emirati is compatible with the position of Local Service Agent.

There is a long list of advantages of appointing a local sponsor or a Local service agent in Dubai, UAE. Apart from the main advantage of facilitation in business movements, LLCs which are formed by local partnerships. do not have any strict restrictions on opening and operating multiple branches throughout the UAE.When developing a strong relationship with reliable sponsorships and partnerships in UAE, business hurdles can be overcome without hampering the overall profitability of the business.

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Know about International Trademark Registration system – The Madrid System
  • Article

Know about International Trademark Registration system – The Madrid System

If a brand owner seeks to register its trademark in multiple jurisdiction, then Madrid System provides for a convenient and cost effective process. The brand owner can file a single application in one language and pay one set of fees to apply for protection in 122 countries.

Madrid System is the most convenient way to apply, modify, expand and maintain one’s international trademark portfolio.

Can I file my international application under the Madrid System?

If you are domiciled, have an industrial or commercial establishment in, or be a citizen of one of the 122 countries covered by the Madrid System member countries, then you can file your international trademark application under the Madrid System.

What is the international trademark application process?

Stage 1 – Application through Office of Origin

Before the brand owner can file an application under the Madrid System , they must have already registered or have filed an application , in their home IP office – which is referred as the Office of Origin.  This registration or application at the Office of Origin is also known as the basic mark . The international application is then submitted through the Office of Origin, which certifies and forwards it to WIPO.

Stage 2 – Review of trademark application by WIPO

Once WIPO receives the international application, it does a formal examination of the mark for obvious errors. Any inconsistencies and errors in the application is informed. Once the mark is approved, WIPO will document and publish the domestic basic mark in the International Register. It will then be published in the WIPO Gazette of International Marks. WIPO will then inform the IP office of each member named in the application.

Please remember that this DOES NOT MEAN that the application is officially approved by the designated trademark office. It also doesn’t mean that the applicant officially hold an active international trademark for their product(s).

Step 3:  Examination by dedicated National office

The designated IP offices will review the application and will communicate its decision within the prescribed time limit (12 or 18 months, as applicable). WIPO will record the decision of the office in the international register and inform the applicant, accordingly.

Benefits of international trademark registration

If you have a global presence and seek to register your brand in different territories, then filing under Madrid system host a number of advantages, few of which are:

  1. The centralised filing system is effective, low cost and time saving.
  2. One application for multiple territory, in one language and in one currency.
  3. Only one date to attend to renewal of the trademark, in multiple jurisdiction.
  4. Process and time line is predictable.
  5. No need to appoint local representative for each designated territory.


If you would want to move further with your international application, or want to conduct a search prior to filing or want us to monitor your existing international application  or want to get a better understanding on how to manage a registration then please contact IMC group, today.

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Trademark registration process in Singapore
  • Article, Singapore

Trademark registration process in Singapore

A trademark is a type of intellectual property rights which includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services.

By and large, it is not necessary to register your mark in Singapore. However, registering the mark shall:

  • Prevents other to adopt the same or similar mark;
  • Help to effectively enforce your rights over the mark;
  • Allows the registered owner to capitalize the trademark by licensing or assigning it;
  • Give right to use the symbol ®; and
  • Provide up to 400% tax rebates from the Government under the ‘Productivity and Innovation Credit Scheme’. This rebate is provided in order to balance the costs of registering for a trademark.
 

How to register a trademark in Singapore?

Before filing the application for trademark registration in Singapore, it is essential that you have ascertained that:

  • the mark is distinct and capable of being represented graphically;
  • does not conflict with a prior existing mark; and
  • is not descriptive.

Once the above is confirmed, one may proceed to file the application with the authorities. The registration process in Singapore can be summarized in the following four stages:

 

Stage 1 : Filing Application

The application for the trademark will contain the following information:

  • name and address of the applicant(s);
  • graphical representation of the mark;
  • class and description of the goods/services for which the trademark is applied for;
  • period of use (if any); and
  • application fees.
 

When applying for a trademark registration in Singapore, it is important to make sure that the goods and services listed in the application must comply with ICGS (International Classification of Goods and Services).

Intellectual Property Office of Singapore (IPOS) oversees the Trademark Registration process. A registrar will check if the above-mentioned requirements has been complied with. If so, the application will proceed to Stage 2.

 

Stage 2 : Examination

At this stage, a formal search is conducted by the registrar to rule out any conflict. The registrar will also scrutinize an application to determine if a mark can be registered in accordance to the Singapore Trademark Laws. For example, a mark that contains an in-distinctive character does not conform to the Trademark Laws. If the mark is acceptable, the registration process will move to Stage 3.

 

Stage 3 : Publication

The applicant is notified regarding the acceptance of the application for registration once it has been scrutinized for possible anomalies. An accepted application is published in the trademark journal which enables the interested parties to oppose to the registration of a mark within two months from the date of publication. The trademark office notifies an applicant if any objection has been filed against a mark, if not the application proceeds to Stage 4.

 

Stage 4 : Registration

A trademark will be registered if all objections were cleared up in favor of an applicant or if no objection was received from any party. A registration certificate is issued to an applicant after the completion of this process. Upon registration, the mark is granted protection for a period of 10 years and the trademark owner can use the symbol ® with the registered trademark.

If your business is looking to get a mark registered in Singapore or wants to get a clarity of the prefiling checklist, call IMC Group today. We shall be happy to assist you with your queries and the application process.

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Singapore Companies COVID 19 Stimulus Measures
  • Article, Singapore

Singapore Companies COVID 19 Stimulus Measures

Enhanced SME Working Capital Loan

  • The SME Working Capital Loan (which has been subsumed under the Enterprise Financing Scheme), will be enhanced to increase the maximum loan quantum to S$1 million.
  • The Government’s risk share will be increased to 90% and SMEs may request for deferment of principal repayment for one year.
  • Maximum repayment period shall be 5 years.
  • Interest rate shall be Subject to the Participating Financial Institutions (PFI’s) assessments of risks involved.
 
Eligibility Criteria: 

  • Be a business entity* that is registered and physically present in Singapore;

  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.
  • Maximum Borrower Group** revenue cap of S$500 million for all enterprises.
  • For “SME Working Capital”, the SME definition refers to Group revenue of up to S$100 million or maximum employment of 200 employees.

Notes:
* ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the enhanced SME Working Capital Loan.
** Borrower Group consists of the following:

  1. Borrower; and
  2. Corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up), and subsidiaries all levels down. (Annual sales turnover and employment size is computed on a group basis.)

Temporary Bridging Loan Program For Enterprises 
  • Eligible enterprises may borrow up to $5 million under The Temporary Bridging Loan Programme (TBLP) with the interest rate capped at 5% p.a.
  • The Government will provide 90% risk-share on these loans for new applications initiated from 8 April until 31 March 2021.
  • Eligible enterprises under the TBLP may also apply for up to 1 year deferral of principal repayment to help manage their debt, subject to assessment by the PFIs.
 
Eligibility Criteria: 
  • Be a business entity* that is registered and physically present in Singapore.
  • At least 30% local equity held directly or indirectly by Singaporean(s) and/or Singapore PR(s), determined by the ultimate individual ownership.

Note:
* ACRA registered Sole Proprietorship, Partnership, Limited Liability Partnerships and Companies are eligible to apply for the Temporary Bridging Loan. Approval of the loan is subject to the PFI’s assessment.

Enterprise Financing Scheme (EFS) – Trade Loan Program For Singapore-based Enterprises  

  • Eligible Enterprises will be able to borrow up to S$10 million to finance short-term import, export and guarantee needs.

  • The Government will co-share up to 90% of the borrowing risk for new applications initiated from 8 April 2020 until 31 March 2021.
 
Eligibility Criteria: 
  • Be registered and operating in Singapore.
  • Have a minimum of 30% local shareholding.
  • Maximum Borrower Group* revenue cap of S$500 million for all enterprises

Note:
* Borrower Group consists of the borrower as well as corporate shareholders that hold more than 50% of the total shareholding of the applicant company, and any subsequent corporate parents (all levels up) and subsidiaries all levels down. (Annual sales turnover and employment size are computed on a group basis).

SG Together Enhancing Enterprise Resilience (STEER)  
  • The Government will increase the dollar for dollar matching; S$1 for every S$2 raised by funds set up by the Trade Associations and Chambers (TAC) or industry groupings, up to S$1 million per fund.
  • To apply for the STEER programme, interested TACs and industry groupings can submit their proposals to Enterprise Singapore.
  • Proposals will be assessed on a case-by-case basis by Enterprise Singapore to ensure that the programme’s intent is met, and to consider operational arrangements, including the rigour of the fund management process, number of local small- and medium-sized enterprises (SMEs) supported, and types of assistance to be provided.
  • Upon qualifying for STEER, TACs and industry groupings will need to use the funds within 18 months.
  • Interested TACs and industry groupings can apply for the STEER programme from 3 Mar 2020 to 2 Mar 2021.

Medium And Longer-term Measures
Apart from the short-term measures to combat the negative economic impact brought about by COVID-19, the Government also announced certain medium and longer-term measures, amongst others, announced/ enhanced include:

1. Enterprise Development Grant
  •  The Government is aiming to reach out to 3,000 SMEs with the Enterprise Development Grant (EDG) that provides maximum support level of up to 80% support in three areas: Core Capabilities, Innovation and Productivity, and Market Access.
  • For enterprises that are most severely impacted by COVID-19, the maximum support level may be raised to 90% on a case-by-case basis.
  •  Applications will be assessed by Enterprise Singapore based on project scope, project outcomes and competency of service provider.

Eligibility:
  • Enterprise must be registered and operating in Singapore.
  • Have a minimum of 30% local shareholding (Singaporean/PR).
  • Be in a financially viable position to start and complete the project.

2. Market Readiness Assistance (MRA) Grant
  • Small and medium enterprises (SMEs) will receive an international boost with the Market Readiness Assistance (MRA) grant to help take your business overseas.
  • Eligible SMEs will receive the following support:
  • Up to 70% of eligible costs, capped at S$100,000 per company per new market* from 1 April 2020 to 31 March 2023 that covers:
  1. Overseas market promotion (capped at S$20,000
  2. Overseas market set-up (capped at S$30,000)
  3. Overseas business development (capped at S$50,000)

  • The MRA Grant support level of up to 70% will be extended until 31 Mar 2023.

Eligibility:
  •  Business entity is registered/incorporated in Singapore.
  •  New market entry criteria, i.e. target overseas country whereby the applicant has not exceeded S$100,000 in overseas sales in each of the last three preceding years.
  •  At least 30% local shareholding (Singaporean/PR).
  •  Group Annual Sales Turnover of not more than S$100 million; OR Company’s Group Employment Size of not more than 200 employees.

3. Automatic Deferment Of Corporate Income Tax (CIT) Payments
  • All companies with CIT payments due in the months of April, May and June 2020 will be granted an automatic three-month deferment of these payments. The CIT payments that are deferred from April, May and June 2020 will be collected in July, August and September 2020 respectively.
  • Companies can expect to receive a letter from IRAS by April 2020.

4. Corproate Tax Rebate For YA 2020
  •  Companies will be granted a rebate of 25 per cent of tax payable, capped at $15,000, for the year of assessment 2020 – a move that will cost the Government about $400 million.

5. Property Tax Measures

Imposing obligations on property owners to pass on the PTR in full to tenants

  • Non-residential properties will be granted property tax rebate for the period 1 January 2020 to 31 December 2020. Commercial properties badly affected by COVID-19 like hotels, serviced apartments, tourist attractions, shops and restaurants will receive a 100% rebate. Other non-residential properties such as offices and industrial properties will get a 30% rebate on their property tax payable.
  • IRAS will send out the rebate notices by 31 May 2020. Property owners can expect to receive their refunds by 30 June 2020.

6. Jobs Support Scheme
  • The Jobs Support Scheme (JSS) introduced where eligible employers would receive a 25% cash grant (up from 8%) on the gross monthly wages of each local employee (Singapore Citizens and Permanent Residents) for the months of October to December 2019, subject to a monthly wage cap of $4,600 per employee.
  • Higher tiers of support on top of the base rate of 25% will also be given to businesses in severely-affected sectors.
  • The JSS will also be extended to cover nine months of wages (up from three months), which will be paid in two additional tranches in July 2020 and October 2020.
  • Under the Solidarity Budget, the wage subsidy for all firms will be raised to 75% of gross monthly wages for the first $4,600 of wages paid to all local employees in April 2020. The first JSS payout will be brought forward from May to April 2020.
  • With the extended circuit breaker period till 1 Jun 2020, the 75% wage support on the first $4600 of gross monthly wages for local employees across all sectors will be extended for another month, i.e. in the month of May 2020.
  • The JSS payout has also been extended to cover wages of employees of a company who are also shareholders and directors of the company (shareholder-directors).
  • Employers do not need to apply for the JSS. The grant will be computed based on CPF contribution data.

All local companies can take advantages of above grants, scheme, loans and measures.

We IMC are at your service, please feel free to contact if any queries:

Pankaj Kumar
[email protected]
+65 92340891

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What Forms Part of the Financial Statements
  • Article, Singapore

What Forms Part of the Financial Statements?

Financial statements are written records of the entity that provide its financial situation at a given point in time. These statements are used by the shareholders, investors, management, the board of directors, employees, suppliers, customers, bankers and other related stakeholders to get an overview of the financial results and condition of the business.

Financial statements comprise of three main components balance sheet, profit and loss statement and cash flow statement. Each of these components is crucial for understanding the financial affairs of the business. Besides, they also help in making sound business decisions.

So, let us understand these components in detail.


Key Components of Financial Statements


1. Balance Sheet

Balance sheet reflects the financial position of the company at a specific period. It shows the assets owned by the company on one side and sources of funds or resources used to own such assets and the amount of shareholding on the other side. The balance sheet depicts the financial strength of the company. Let us understand the components of the balance sheet in detail.

  • Assets

    Assets include tangible assets (in the form of fixed assets and current assets) as well as intangible assets (in the form of rights and other non-physical resources that add value to the business).

  • Liabilities

    Liabilities include the debts of the entity and any obligation that might arise during the course of business. In simple words, these are amounts owed to lenders and other creditors. Liabilities include current liabilities (in the form of bills payable, creditors, etc.) and non-current liabilities (in the form of term loans, debentures, etc.).

  • Equity or Owner’s Equity

    The owner’s equity is also termed as capital contribution by the owners. It is the balance amount that is arrived after deducting the liabilities from the net assets of the company. Practically, this is the capital available for distribution to shareholders in case of an event like liquidation. Owner’s equity includes capital contributed by the shareholders, retained earnings and reserves.


2. Profit and Loss Statement

Profit and loss statement reflects the financial performance of a company over time. In simple words, it is a statement of revenues earned and expenses incurred to earn those revenues. Excess of revenues over expenditures result in profit and vice versa result in loss. Let us understand the components of profit and loss statement in detail.

Revenue

Revenue is the amount received by the company from its principle activity i.e. sale of its products or services as well as its non-core activities i.e. as a result of using the capital or assets of the business.

Expenses

Expenses refer to the outflow of money that occur for daily operational costs. It includes wages and salaries, interest paid on loans, cost of goods sold, rent expenses, import duty, etc.

Gains

Gains refer to any monetary benefit received by a company from means other than the normal operations of a business. The gains arise from nonrecurring and unusual transactions. For example, gain on sale of an asset, gift, etc.

Losses

Losses are decrease in the net assets from incidental transactions other than normal expenses of the business or distributions to owners. For example, loss on sale of land, loss from lawsuits, etc.

3. Cash Flow Statement

Cash flow statement shows the liquidity position of a company. It helps to understand the sources of cash and utilization of cash. In other words, this statement summarises the actual as well as anticipated cash inflows and outflows of a business over an accounting period. Let us understand the components of cash flow statement in detail.

  • Cash Flow from Operating Activities

    It refers to all the cash flows from the operating activities of a business. These include production, sales and delivery of products, payment from customers, inventory costs, advertising, etc.

  • Cash Flow from Investing Activities

    It refers to cash flows that arise as a result of investments. It includes gain or loss from investments, purchase of assets, etc.

  • Cash Flow from Financing Activities

    It refers to cash flows resulting from borrowing, repaying investors or raising capital for the business. It includes cash dividends, debt or interest repayment, etc.

Conclusion

The financial statements provide an insight into the financial position of a company. They act as an important source of information for making financial decisions and framing business strategies related to finance and accounting.

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What is a Trademark
  • Article

What is a trademark?

A trademark is a sign that one can use to distinguish their business’ goods or services from those of other traders. Trademark includes any word, name, symbol, device, or any combination, used or intended to be used to identify and distinguish the goods/services of one seller or provider from those of others, and to indicate the source of the goods/services.

Why is it important to register your trademark and its benefits?

Trademarks are used in order to separate the products/services of one business from the competitors. It gives a unique identity to the owner of the registered trademark and in this competitive commercial world, the importance of having a unique identity for the target customers cannot be overstated.

Few of the benefits of registering a trademark are:

  • Exclusivity: A registered trademark is protected by trademark laws and can be exclusively used by a business. Other businesses are legally prohibited from copying a registered trademark. Registered owner can also capitalize on the registered trademark by licensing it to third parties or selling it for a value.
  • Market Value: If a business has a registered trademark, then the owner may benefit from its increasing market value.
  • Tax Benefits: A registered trademark owner may receive tax rebates from the Government due to having a registered trademark.
  • Advertising: A trademark may even communicate a message to the viewers through a design, word or logo.
  • Burden of Proof: Even though an unregistered trademark enjoys certain protection, the burden of proof is higher when somebody is copying it.
  • Use of Symbol: Once the mark is registered, you can use the symbol ® which symbolizes that the mark is registered with the authorities and added to the prestige of the company.


By association with a successful product or service, or by persistent advertising or even the vagaries of fashion, a mark may be built into an asset of prime value to a business, few  of the example which stresses on the value of a trademark are – Apple ( trademark value $29.5 billion)* , Microsoft (trademark value $42.8 billion)*, Google (trademark value $44.3 billion)*.Therefore, it is a prudent step for all businesses, irrespective of the size of operation, to have a registered trademark.

If your business is looking to get a trademark, call IMC Group today.

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India may become the new Home for 200 American Manufacturing Companies wanting to leave China
  • Article, India

India may become the new Home for 200 American Manufacturing Companies wanting to leave China

It’s been nearly a year since President Mukesh Aghi of the USISPF (US-India Strategic and Partnership Forum) announced that 200 US companies are considering a move out of China into India after the 2020 general election.  For those that are searching for a viable alternative to manufacturing base in the Communist nation, this is a tremendous opportunity for these companies.  According to Aghi, these companies have been focused on investing in India since last year.

In an interview with Press Trust of India, Aghi stated that the recommendation made by USISPF would accelerate reforms and create more transparency when critical business decisions must be made.  As a result, US companies are looking at the decision-making process while taking a domestic approach to data localization and e-Commerce rather than a global one.  Aghi also suggested that these reforms need to be accelerated for doing business in India becomes more transparent during the process. He was of the view that Indian companies need to go all out to market their services and ensure streamlining the global supply chain services as these are critical issues. With much needed reforms in this area, it would lead to an increase in employment and job creation.

The need to entice these companies to relocate their manufacturing bases out of China is paramount.  Furthermore, customs and land appropriation issues must be elements of the global supply chain.  As a result, this could create thousands of employment opportunities for India company incorporation.  In addition to the above, former Assistant US Trade Representative for South and Central Asian Affairs, Mark Linscott, is working with USISPF members to develop a recommendation for how the Indian Government can improve its exports.

It would appear that establishing a Free Trade Agreement between the US and India is the next logical step in the process if the US wants to avoid importing the same type of cheap goods that are currently coming out of China.  A Free Trade Agreement will eliminate that concern by creating barriers to Chinese products while gaining access to the Indian market.  At the same time, India would have more access to the US market. 

Most importantly, issues such as a Generalized System of Preferences or GSP would diminish.  A high-level manufacturing council has already been developed among member companies for the purpose detailing what India must do in order to become a manufacturing hub.  As it currently stands, these member companies have invested over $50 billion over the past 4 years.

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Audit and Compliance Requirements in Singapore: A Guide for Foreign Investors
  • Article, Singapore

Audit and Compliance Requirements in Singapore: A Guide for Foreign Investors

Singapore’s ease of doing business, transparent business and legal system, favourable business environment, advanced infrastructure and stable political environment have contributed to making this island nation a favourable destination for foreign investors to set-up their business. In order to maintain its dynamic business environment, the Singapore government requires all the Singapore company incorporations to abide by its audit and compliance regulations. As per the Companies Act, it is mandatory for all the companies in Singapore to comply with the annual filing requirements of the Inland Revenue of Singapore (IRAS) and Accounting and Corporate Regulatory Agency (ACRA). If you are a foreign investor incorporating a new company in Singapore, this guide can help you understand the audit and compliance requirements with regard to Singapore company formation.

Audit Requirement

According to the Companies Act, it is mandatory for all the private limited companies to get their financial records audited by a qualified public accountant on an annual basis if the company is not qualified for Audit Exemption. Apart from this, they are also required to comply with the below-mentioned requirements.

Holding Annual General Meeting

It is obligatory for Singapore companies to hold an annual general meeting (AGM):

  • The Company must hold an AGM within six months after your company’s financial year end and file the annual return within seven months after company’s financial year end

Guide to Incorporating Your Business in Singapore: Essential Checklist

Download Checklist

During such AGMs, the shareholders are entitled to discuss the following Ordinary Business:

  • Dividend declaration
  • Auditor’s reappointment
  • Director’s re-election
  • Remuneration for senior executives and directors
  • Adoption of the audit report
  • Transact any other business

Auditor’s Appointment

It is the duty of the directors to appoint the auditor within 3 months of the incorporation of a company in Singapore. However, the appointment of auditor and audit of financial statements is exempt if

A company qualifies as a small company if:

(a) it is a private company in the financial year in question; and

(b) it meets at least 2 of 3 following criteria for immediate past two consecutive financial years:

The company audit can be carried out only by a public accountant who is registered with The Accounting and Corporate Regulatory Authority (ACRA). The duty of the auditor is to report if the company’s financial statements represent a true and fair view. Besides, they also have to report if they comply with the singapore financial reporting standards and give an objective analysis of the company’s financial performance.

Audit Exemptions

As per the small company concept introduced by the ACRA in 2015, the companies that qualify as ‘small’ are exempted from the requirement of appointing an auditor and conducting the audit. To qualify as a small company, a company must fulfil.

Annual Filing Requirements

Companies are required to submit their financial accounts on an annual basis. It should include balance sheet, cash flow statement, comprehensive income statement and statement of changes in equity. Non-compliance to hold an AGM and late or non-filing of financial statements can attract penalties in the form of fines, summons or arrest warrants. If need be, you can outsource accounting services in Singapore.

Conclusion

In order to comply with the above regulations for company formation in Singapore, it is advisable for foreign investors to use the services of professional advisors like IMC Group who can help you stay compliant with these rules and regulations.

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