The Singapore accounting standards
Companies across the world are required to maintain certain accounting standards in order to do some financial reporting. This will help the company and the local authorities to understand evaluate the financial performance of companies.
Each country adopts some financial standards, most countries will adopt globally recognized accounting standards such as the International Financial Reporting Standards (IFRS). The accounting and transaction standards facilitate comparing performances of businesses across countries and perform the tax computation.
In the United States, the Generally Accepted Accounting Principles (GAAP), and on the other side of the world, Singapore has adopted its own version of the IFRS called the Singapore Financial Reporting Standards (SFRS) which has been in force since 2003.
The financial statements in Singapore
The Accounting Standards Council of Singapore (ASC) has defined the SFRS which require the preparation and filing of yearly financial accounts for each company. The documents are:
- Statement of Comprehensive Income
This document summarizes both the standard net income of the company and the other comprehensive income. Often refers to the Profit and Loss statement.
- Statement of Financial Position
It gives you a view at a single point in time of what the company owns (assets) versus what it owes (liabilities). The Balance sheet gives a general understanding of the value of the firm.
- Cash Flow Statement
Summarizes the inflow and outflow of cash and cash equivalents for the company. The cash flow statement measures the ability of the company to finance its debt obligations and operating expenses.
- Statement of Changes in Equity
Less known than the 3 previous financial statements, the Statement of Changes in Equity summarizes the changes in the previous year of the company’s equity, it can be change partner’s equity in a partnership, a change of shareholder in a private limited company, etc. The document provides a view of who own the company through the financial year.
The financial statements’ filing must be done with the Accounting and Corporate Regulatory Authority (ACRA) of Singapore. MyBusiness in Asia offers businesses to deal with the financial statements of your company as part of the accounting services in Singapore.
Check our Corporate secretarial services Singapore, Bookkeeping Services Singapore, all about Sole Proprietorship Singapore and How to Register a business in Singapore.
Why outsource the accounting of your Singapore Company?
MyBusiness in Asia offers comprehensive accounting and bookkeeping services allowing you to focus on growing your business. Our accountants are professionals with years of industry expertise, our staff is guided by Accredited Chartered Accountants and Tax Practioners to ensure the highest quality of deliverables.
Choosing the right partner to take care of your books is a crucial step in every business’ life cycle – MBiA partners with you to support your growth outsourcing the most time-consuming aspect of your Singapore business.
Our local knowledge, speed and lasting commitments make MBiA the perfect partner to support your business operations in Asia. Scale fast while we guide you through the accounting and tax regulatory requirements in the region.
Benefits of Accounting services Singapore
- We help you easily keep track of your business’ performance and evaluate your results through reports
- Adjust your budgeting and future projections, our quarterly management reports are a click away
- Be on top of every change in the Singapore Accounting standards, IRAS guidelines or Salary matters
- Never miss a Filing Deadline for your Estimated Chargeable Income (ECI), C-S/C, the Annual Tax Returns, Financial Year End (FYE) Filing obligations : reporting timelines and requirements
- Operate in compliance with the local regulations with complete peace of mind
- We take off your plate the payroll and leaves management of your staff
- Learn the Good accounting practice for your Business
MBiA Accounting and Tax team assists businesses across APAC deal with the most challenging aspects of their projects: we provided dedicated accounting solutions for Entrepreneurs and SMEs, with expertise in local and regional regulations, standards, and requirements.
Upgrade your accounting service to MBiA
Our accounting services in Singapore combine the expertise of our trusted accountants with a streamlined and fully digitalized process. Manage your accounts remotely, digitally and paperless thanks to our accounting cloud software solutions:
- Simply, send us a photo of your receipts and transactions or share a digital copy of your invoices through our messaging app. We will take care of your books and accounting management.
- Manage your firm’s payroll and employees’ reimbursements from your phone, tablet or laptop. Easily manage your company’s employment matters in compliance with the local regulations, all documents are always available online on our platform.
- We are expert in Corporate Tax for Entrepreneurs, SMEs and Start Ups. We guide you through the best available practices so you never have to worry about tax compliance.
When your business grows and the complexity of your books increase, is when the value of MBiA services is most evident. From consolidation of accounts to cross border transactions and tax credits, our accounting team will proactively make sure you adopt the best strategy and ensure your transactions are compliant with the Singapore regulations.
Whenever you need it, you can request remote ad-hoc consultations by booking a slot with our experts, MyBusiness in Asia | Schedule a meeting
Throughout the years we have gained deep cross-industry experience, which will allow us to assign the best accountant and supervisor based on your business model. From single entrepreneurs to SMEs with regional operations, from e-commerce to media companies, we have you covered.
Our scalable services adapt to any business and evolve with the complexity of the accounts
Tax compliance is becoming more and more heavy. Our services will allow you stay ahead of any changes in the tax framework
Timely and Value-driven reporting made possible thanks to the combination of our IT solutions and team of experts
We are Asia experts. Our group offices and cross-border partnerships will help you to expand in Asia developed and emerging markets
Our Singapore Bookkeeping Services
We know the importance of accounting to keep your business compliant and ensure you have the most accurate information in a timely manner to take the strategic decision so your business can thrive.
Our accounting and bookkeeping service will provide you with Quarterly Management Accounting Reports, inclusive of Profit and Loss, Balance Sheet, Accounts Receivable, Accounts Payable, Payroll and cash-flow reports.
We cover the full range of accounting services for your firm:
✓ Set up & onboarding on XERO1
✓ Quarterly Management Accounting report
✓ Multicurrency Accounting
✓ Year-end finalization of accounts
✓ Year-end Unaudited Financial Statement preparation and filings
✓ Treasury Services and bank connections
✓ Seamless Payroll & Leaves management
✓ Group Accounts Consolidation
✓ Rescue Accounting and reconciliation
✓ Audit assistance
1 or Accounting Software of your choice
And the full range of Tax services:
✓ Estimated Chargeable Income (ECI) & Corporate Tax Return preparation and filing
✓ GST Registration
✓ Quarterly GST filing
✓ Application to dedicated GST Schemes
✓ Application to Local Tax Credits, Incentives and Tax Schemes
✓ Withholding Tax filings
✓ Yearly Personal Tax Returns
✓ Tax Clearance for Foreign & SPR Employees
We are specialized in assisting Singapore Holding Companies, Entrepreneurs, Start Up and Small & Medium Enterprises (SMEs) running their operations in Singapore and the APAC region. For each of them we have designed dedicated offers: ***link to every offer page***
You can select and explore below the packages we offer and which also cover your accounting needs:
|HOLDING COMPANIES PACKAGE|
|SINGLE ENTREPRENEURS PACKAGE|
|YOUNG BUSINESSES PACKAGE|
|ESTABLISHED SMES PACKAGE|
We grow with our clients
More than 500 clients have trusted our group with their accounting needs, relying on the expertise of our team to manage their books hassle-free, to stay complaints with the local Tax and accounting regulations, and to thrive in their Asia project.
Branch of Foreign Firms, Pte Limited companies, Sole Proprietorships or Limited Liability Partnerships (LLP): our accounting management services are specifically tailored for any Singapore business structure.
Dealing with the accounting of your company is a cumbersome task that we can handle for you. Using the best-in class digital cloud software solutions we deal with bookkeeping while offering you dashboard overviews of your company financials.
We also take care of your firm’s payroll needs for your employees as well as your employer’s returns. We can partner with you as your bookkeeper, accountant, controller, business advisor, or the entire Accounting and Finance department.
Digital solutions complemented by professional expertise: manage your company with our 100% digitalized services at attractive costs, leverage on our team of industry experts, part of the award-winning RBA Group.
Accounting and Tax resources
- GST registration & filing
In Singapore not all businesses are GST registered. The GST registration becomes mandatory only when the business reaches 1 million SGD in turnover in 12 months or its turnover is guaranteed to exceed 1 million SGD in the next 12 months. Once GST registered, every business must report to IRAS its GST returns on a quarterly basis.
Learn more about GST registration and its implications your business, your sales and your clients Goods and Services Tax (GST): all you need to know.
- Tax Credits, Rebates and Exemptions
The Inland Revenue Authority of Singapore (IRAS) has provided numerous Tax Schemes and reliefs to reduce companies’ tax bill in certain industry and when specific criteria are met. New Startup exemption scheme and Major Exporter Scheme are among the most popular, find out more from our experts.
- Other indirect Taxes
Other indirect taxes are not very substantial for Private Limited Companies in Singapore, except for customs duty levied on goods imported into, or manufactured in, Singapore such as: Tobacco, Liquors, Motor Vehicles and petroleum products.
- Foreign sourced income received in Singapore
In Singapore, tax resident and non-resident companies are generally taxed in the same manner, but tax resident companies can enjoy certain benefits for their foreign source income in Singapore. Find out more here: Foreign sourced income tax received in Singapore : all you need to know
- Do I need XBRL?
XBRL stands for eXtensible Business Reporting Language. It is a language for the electronic communication of business and financial data worldwide. Generally, in Singapore companies are required to file their Financial Statements in XBRL format, unless exempted. MBiA will assist you to manage your XBRL requirement and accounts and take care of all filings with the local authorities.
- Financial Reporting
Under sections 201(2) and 201(5) of the Companies Act (the “Act”), directors are responsible to present and lay before the company, at its annual general meeting, financial statements that:
In compliance with Accounting Standards; the financial reporting should give a true and fair view of the financial position and performance of the company. Learn more about requirements and deadlines here: 2021 filing obligations for Hong-Kong and Singapore : reporting timelines and requirements
- How do I issue an invoice?
All Singapore businesses registered GST must issue Tax Invoices. A Tax invoice is the most important document to support input tax claim with IRAS. The invoice standards change based on your GST registration and GST filing.
A tax invoice must include all the following information:
- Is my company exempted from audit?
The audit exemption in Singapore is allowed for a Pte Limited company meeting 2 of the 3 criteria:
- total annual revenue ≤ $10m;
- total assets ≤ $10m;
- number of employees ≤ 50.
As part of a group, the company and the group shall meet 2 of the 3 criteria on a consolidated basis for the past 2 financial years.
Please refer to our article Audit obligations for companies in Singapore in 2021 : all you need to know for more details.
- Singapore corporate Tax Rate
Singapore Pte Limited Companies are taxed at a flat rate of 17% of their chargeable income. Newly incorporated Singapore companies that meets the “Startup Exemption Scheme” requirements can benefit from a Tax Exemption on the first SGD 200,000 of Chargeable income for three consecutive years.
|Chargeable Income||Tax Exemption (%)||Tax Exempted Amount|
|First SGD 100,000||75%||SGD 75,000|
|Next SGD 100,000||50%||SGD 50,000|
- Singapore Tax Deadlines
Your firm has to file the Estimated Chargeable Income within 3 months from the end of your financial year unless you qualify for a waiver or you have specifically been exempted.
Corporate tax filing for Pte Ltd (Private Limited) Companies in Singapore is the 30th of November each year (for paper filing) and 15th of December each year (for online filing).
- Dormant Companies tax obligations
A Pte Limited company must file its Corporate Income Tax Return (Form C-S/ Form C-S (Lite)/ Form C) by 30 Nov every year unless the company has been granted a waiver to file Form C-S/ Form C-S (Lite)/ Form C. More on dormant companies here: How to put a company on dormancy in Singapore, and the implication