Overview

Goods and services tax (GST) was first introduced in Singapore as part of the Goods and Services Tax Act (GSTA) on 1 April 1994. The Comptroller of Goods and Services Tax levies this tax upon the supply of goods and services in Singapore by any taxable person in the course or furtherance of a business, as well as upon the import of goods into Singapore.

A GST-registered trader must charge GST on taxable supplies of goods and services made to its customers.

Rates of Tax

In general, for GST purposes, a supply is either taxable or exempt. A taxable supply is one that is standard-rated or zero-rated.

Standard-rated Supply

A standard-rated supply is liable to GST at 7%.

Zero-rated Supply

A zero-rated supply means that GST applies to a specific supply at a 0% rate.

Exempt Supply

If a supply is exempt from GST, no tax is chargeable on it.

Registration

Compulsory Registration

A taxpayer who makes taxable supplies is required to register with the Comptroller of GST if:

• At the end of any quarter, the total value of all its taxable supplies in Singapore for that quarter and the three quarters immediately preceding that quarter exceeds S$ 1 million, or
• It is reasonable to believe that the total value of its taxable supplies will exceed S$ 1 million in the next 12 months.

Voluntary Registration

Businesses with annual turnover of taxable supplies of less than S$ 1 million may request registration on a voluntary basis. The voluntary registration of a person by the Comptroller of GST is discretionary and requires the taxpayer to:

• Participate in the GIRO scheme ( an interbank electronic payment system) for the payment and/or refund of GST prior to GST registration
• Provide a security deposit as may be imposed by the Comptroller of GST on a case-by-case basis
• Attend a compulsory seminar "Introduction to GST" conducted by the IRAS within three months from the effective date of registration
• Remain GST-registered for at least two years, and comply fully with the responsibilities and obligations of a GST-registered person and any other conditions as may be imposed by the Comptroller of GST.

Non-resident Overseas Business

A non-resident overseas business that makes annual taxable supplies in Singapore exceeding S$ 1 million must register for GST.

GST Registration Number

Upon registration, both residents and non-residents receive a GST registration number consisting of 10 alphanumeric characters.

Failure to Register for GST

A person who fails to register for GST may face a fine no greater than S$10,000 as well as a penalty equal to 10% of the tax due for each year from the date on which the person was required to apply for registration. In the case of a continuing offence, the person faces a further fine of S$ 50 for each day during which the offence continues after conviction.

GST Representatives

Non-resident businesses that are registered for GST in Singapore must appoint a representative. The representative must keep GST records and accounts, and make payments of GST on behalf of the overseas business it represents. In practice, the non-resident business may only appoint one person at a time to act on its behalf, although a representative may act for more than one principal at any time. The representative must keep separate GST accounts and make separate GST returns, for each principal it represents. No permit is required for the representative.

Returns, Payments and Penalties

From 1 January 2007, a GST trader must file electronic GST returns  and make GST payments on a quarterly basis tied to the trader's financial year (eg a calendar year trader would file and pay GST based upon quarterly accounting periods ending in March, June, September and December).

Input Credit

Taxpayers may claim input GST as a deduction when submitting the GST return to the Comptroller of GST. The total input tax paid on business purchases can be deducted from the total output tax collected from customers. The resulting difference is the net GST payable or net GST refundable.

GST Refunds

The Comptroller of GST normally makes refunds due to GST-registered persons within 30 days from the date of receipt of the GST return. GST refunds can be made via electronic bank transfer, cheque, bank draft or telegraphic transfer.

Records and Invoices

Record Keeping Period

Accounting records  pertaining to accounting periods ending before 1 January 2007 were required to be kept  for seven years. Accounting records pertaining to prescribed accounting periods ending on or after 1 January 2007 are required to be kept for five years.

Records can be kept in electronic form as long as the guidelines set out in the IRAS e-Tax guides "Keeping of Records in Imaging Systems" and "Keeping Machine-sensible Records and Electronic Invoicing" are adhered to.

Singapore Taxation Services

Overview

All business decisions today have tax implications, and it is important for a company to manage their income tax requirement efficiently. Our tax professionals will keep you abreast of developments that may affect your business. We collaborate closely with you to identify and implement tax strategies that work best within your organization.

We can also assist you in structuring your executives; remuneration packages that will offer both your company and your staff the maximum tax benefits. For individuals and family held enterprises, we can help you in organizing your financial affairs in the most tax efficient manner.

Scope of Services

• Corporate tax compliance
• Partnership and personal tax filing
• Tax Planning for corporate and individual
• Singapore tax structuring and Planning
• Tax efficient structuring of employment packages
• Negotiation of tax incentives with tax authorities
• Optimizing use of tax incentives and exemptions
• Fees are subject to the complexity of the taxation accounts