Foreign companies doing business in Singapore are required to appoint fiscal representatives for GST purposes. Also known as tax agents, they are usually accountants or other specialists who can assist in GST compliance matters.
Below, our specialists in setting up companies in Singapore explain what a fiscal representative does and how to open one. We are also at the service of foreign businesses with various services.
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How to open a fiscal representative in Singapore
Creating a fiscal representative implies setting up a company in Singapore or registering as a sole trader, depending on whether you are an accounting professional or an investor. As such, you must follow the usual business incorporation steps. If you want to operate through a sole proprietorship, you must submit proof of being a certified accountant.
If you want to open a company in Singapore, on the other hand, you can hire an accountant to provide fiscal representation services. You can rely on our local specialists for support, no matter the business form you decide on.
Services provided by a fiscal agent in Singapore
As mentioned earlier, foreign companies are required to appoint a tax representative in matters related to the payment of the GST, the equivalent of the VAT in other countries. In practice, such a service is also used by domestic enterprises, as they also want to ease their tax administration tasks as much as possible.
Here are the main services provided by a fiscal agent in Singapore:
- GST registration;
- GST payments compliance;
- GST returns filings;
- GST claims;
- communicate with the Inland Revenue Authority.
Apart from these, a Singapore tax agent can also assist in customs procedures, as many of them require complying with GST formalities.
Apart from these services, a fiscal representative can also offer support in complying with corporate tax compliance requirements on demand.
If you decide to set up a company in Singapore, our agents can help you with its registration with ACRA and the Inland Revenue Authority.
Who can act as a fiscal representative in Singapore?
Given the mandatory character of this service for overseas businesses, it is important to note that a Singapore fiscal representative will be liable for all GST-related regulations. As such, the agent must be a specialist who knows the main laws and compliance requirements to respect. This is why such a service is usually provided by accountants and accounting firms. However, it can also be supplied by other companies specialized in Singaporecompany formation, for example.
Important aspects related to the payment of the GST in Singapore
The Goods and Services Tax is the most important indirect levy, and local companies must register for it upon reaching an annual turnover of SGD 1 million. Foreign businesses must register upon their entry into Singapore. This is why appointing a Singaporefiscal representative must be done as soon as possible.
Compared to other countries, the Singapore GST is quite simple, as it has a standard rate of 9% and 0% reduced rate. Also, the City-State has enabled special GST schemes for certain industries, and as such, the tax agent will also be in charge of handling such specific matters.
Here are also other important considerations about this tax:
- companies must file GST returns on a quarterly basis, and late filings can lead to penalties;
- a late submission can imply a SGD 200 penalty;
- another SGD 200 penalty will be imposed for each month if the return is not filed, with a maximum of SGD 10,000.
- failing to pay the tax attracts a 5% penalization of the due amount.
Do you want to open a fiscal representative in Singapore, or do you need such a service? Contact usand find out how we can help you!