Monthly Archives: December 2013

It is paramount for companies to be able to choose the right provider for International tax planning in order for them to be able to contend as well as live in today’s market that has gone global. This calls for the companies to keep up with the building pace of various development s around the world. These are such as tax and legislative as well as regulatory developments all around the world. The complexity of management of a business on a global scale seems more complex than ever before.

Since this calls for tax departments to remain alert and well-versed in internal and external developments due to the combination of these factors, they need to be able to take on competition in aims and interests on a worldwide scale. To be able to attain a competitive global effectual tax rate, it is paramount to have global tax strategies that are fully in line with corporate strategy and planning with operations as well.

The conditions that call for a provider in International Tax planning include if a company is planning to expand into new territory as this could require the use of a local firm to be able to deal with it’s the tax developments. If you as a company would like some cash flow in your overseas operations and also need to control your coffers function worldwide then you certainly need to involve the services of an International Tax planning firm.

Another reason for you to require a provider for International tax planning is the need to ascertain that your company tax function is associated with  your business plan or if you are defending a tax authority challenge for instance on capitalization.

The International tax services experts will offer their aid to be able to help your company attend to its cross-border requirements. This they do by offering advice on different aspects of International taxation to be able to help multinational businesses to achieve their business goals in a tax proficient way locally and internationally.

These International tax planning firms offer advice on different subjects to companies.  One area they help in is in the tax efficient holding company locations and cross border financing and treasury solutions. Controlled foreign companies tax planning and Income tax treaties, profit repatriation and loss utilization is also in their list of specialization. As is inbound and outbound structuring and management of intellectual property with intangible assets. Other areas that they might be able to address are tax efficient supply chain and shared services and also the regional tax issues such as harmonization. Credit management and planning along with business models also fall in line with the areas that a provider for International Tax Planning would take on for a particular company.

With an effectual International tax planning strategy your company will be able to cut back on your tax liabilities with the right tax advices.  International corporate tax planning can in effect minimize your tax liabilities as well. But due to the complexity of International tax planning you need to consider carefully especially when diverse authority is involved.

If professional advice is lacking, then there some problems that could arise causing liabilities to the company.  The structure of a company’s affairs and also your personal affairs could directly translate to the amount of tax that you pay. The right provider for International tax planning will be able to come up with a personal tax plan strategy to ensure that you get to pay the minimum in tax. This will end up saving your company money for tax.

The International tax planning provider should be able to spot risk and offer counsel on ways for the company to guard itself against them. This stretches in many areas such as particular social and political rules. It is crucial to be able to coordinate international tax advice right across jurisdictions and the team of international tax experts is able to come up with custom-made tax plans to be able to run your compliance without unnecessary exposure.

Ultimately any company that is keen on optimizing profits and ensuring the smooth flow in the area of International tax planning will need these experts on board.


In terms of spreading out business interests one might wonder which industry is suitable for offshore company incorporation. Mainly, companies that have worldwide interests and a large amount of cash often require spreading out their business activities. These companies are registered in a country that is also known as a tax haven where they do not assume any financial and even commercial activity. It is for this reason that they are also known as non-resident companies, which are owned and controlled by foreign citizens or even corporations which conduct their business from different locations of the world. They only use the tax haven as the lawful and registered address to the corporation.

The options that may be open for such a company would be operating an auxiliary from a different country or they might even consider having a branch office on distant shores. The most practical alternative for one such company would be the option of incorporating an offshore company. Even then a while ago offshore company incorporation passed for a method through which a business would evade or even avoid taxation from their home country. However what is certain is that offshore company incorporation could be an alternative for businesses that like to expand services abroad. In this case then it means that it is a way of opening another branch in another country altogether.

Offshore companies do not work for all kinds of business therefore on needs to belong to certain kind of business so as to be able to incorporate an offshore company thus enjoy the benefits that go with it. Service industry as well as consultancy industry and also tax planning will enjoy the advantages of offshore companies. So will anyone who is into offering financial services and trading. Also those who are in investment and intellectual property, basically anyone who is in the service industry can have an offshore company.

After one decides to go ahead in the incorporation of an offshore entity it is then necessary to determine a location for the offshore company. Seeing as there are many countries all over the globe for one to be able to set up an offshore company without any hassle of requirements. Since the approval is usually given within a few days of application chances are that your business will not be affected in any way since there will be continuity of operations all through. The countries that provide the chances for offshore incorporation are called tax havens due to the benefits that they offer offshore companies that are incorporated in their individual countries. They come with different regulations for one to adhere to in setting up any such a company even thought they also guard such offshore companies.

There is little or no tax in tax haven incorporation then you need to compare the various benefits that you would get from different tax haven country. This will differ from one country to another with some even been able to offer incorporate offshore companies very little or even no tax liability even. Another consideration that you need to make is the kind of authority the country would hold on your taxation responsibilities with a view to finding out how this would in effect your own international operations. Take time to understand the benefits offered by tax havens in each country and the benefits thereof since it can be quite ambiguous at times.

It is therefore an established fact that the companies that are in service industry are better suited for offshore company incorporation since because of the flexibility of the services that they offer. With their exemption of tax liability and even where present only being of a minimal amount, these companies are able to optimize their profits to the full. A good example of tax haven incorporation would be that of IBCs, which are such companies that offer financial services to international clientele by way of international trade as well as investment activities. This is offered by professionals and goes for asset protection.

The whole process is geared to a company being able to offer services to its clientele that are not in its original country of origin in a professional and convenient way while enjoying certain benefits of these tax havens.

Anyone can qualify for the 3 Singapore Government Grants to help your business improve productivity as long as they are local citizens who run a business that is sponsored by three popes. It can be tricky trying to understand the meaning of the information that is offered by the Government on grants. Here is an explanation of what they are about.

Productivity and Innovation credit (PIC) It comes with two alternatives to be able to compensate you for the purchases and investments that you do in order to improve your company’s productivity and innovation. This stems through purchase or letting out equipment to staff training,

There are two ways that you can go about this namely that one can claim tax reduction of 400% of the cost for several business activities namely Research and Development (R&D) projects and Intellectual Properties and Rights including designs and trademarks. Purchase of IP for business usage and Purchase or leasing of equipment are also on the list of the businesses activities for which you can claim reduction of tax. So also is the business of Training of employees as well as one in Design projects.

The other option to recompense you is by the exchange of up to $100,000 of your expenditures on one of six business activities mentioned earlier towards a cash payout. However there are circumstances which you need to fulfill one being to meet the required expenditure amounts for FY 2011 – 2015. Another requirement is for you to have at least three Singapore citizens or PRs in your employment and also pay for CPF contributions. Yet another condition is for you to be active in Singapore.

Another of Singapore Government Grants is the Inclusive Growth Programme through which the government aids to pay up to 90% of any expenses connected to advancing the output of your business by giving up to $500,000 every year to be able to help facilitate your business expenditure so as to be able to raise the value of the low-cadre workers that make not more than $1,700 every month. In this case there is more productivity for your business as well as the workers.

There are two conditions necessary for your company to be able to qualify for co-funding namely that you need to be able to prove that the project for which you need co-funding will help progress the running of operation as well as help your business to embrace shifting market circumstances in order to get better products and services.  You also need to share your output gain by offering the low cadre workers bonuses and other incentives.

On approval of the co-funding, 50% of your business cost will be covered by IGP to be able to buy new equipment to computerize your work processes and also re-engineering existing work process in order to widen the output of the business.  Outsourcing the minor process to the business namely cleaning and security among others and also registration of any Intellectual Property (IP) and Rights resultant of processes and new products that the business makes. The IGP as well covers up to 90% of the rate in training programmes based on making better the efficiency of the employees.

Special employment Credit enables Workers that are over 50 years of age to be able to provide an important input to the workforce of the day.  The SEC has its purpose in being able to offer you some reason to be able to add working-class veterans to your team.  There is an 8% pay out for every over 50 employee who makes over $4,000 every month with a less return for those that earn lower than that. To be able to qualify and get a payout for SEC you just need to get someone aged 50 and above into your team of workers and also make expected CPF contribution as qualification and payout is automatically by the CPF. With this grant having workers who are over the age of 50 offers necessary experience to your business as well as giving you some little cash alongside that as well. Therefore is a win-win situation for you in the end.

There are advantages to outsourcing accounting services in Singapore one being that it saves you on time whether you are setting up offline or online accounting services. This enables being able to save on time to work on your core business instead of having to do all the work by yourself. The time that you have in your hands is better spent growing your business instead of having to do the accounting yourself thus productivity is increased on your end. The spare time you have can now be spent on expansion, growth and even investment or operational plan for your business. This not only results in efficiency, but also productivity.

Outsourcing aids you in saving money and payroll cost. This is because you do not need to pay staff salaries and also give contribution to central provident fund for employees. Since you have someone else taking over your accounting then you have no concern of employees taking medical leave or even having to pay them windfall for performance. This is a good way for you to increase your net profits in the long run as you will have cut back on the cost of employment.

When you outsource you no longer have to deal with issues such as recruitment that can be quite a task in itself. Getting the right staff to work for you can take a lot of time and also finances since you would then need to offer training on the job. Seeing as it is a process that also takes time to be able to settle on the right candidate. There is no undue interruption of work in case of an employee’s departure as would be the case when you employ people to work for you. All these are benefits that come when you let someone else take over the accounting services of your company.

Issues of the performance of your staff need not arise when you outsource the accounting services of your company. This is because you outsource to people who are experts in the field therefore it is not up to you to ensure that they keep up with training since they are supposed to be well versed with their field of specialization. Since this is what they do,  then you expect them to know what to do and what to avoid in the discharge of duty.

Accounting services in Singapore are offered in a wide range from companies that take on the service as well as individuals who can be outsourced to work for smaller companies.

Some of the services that are offered by accounting services are such as credit control as well as debtor’s control. They also liaise with auditors in order to be able to adjust trial balances. Often times they are also charged with the preparation of annual financial statements. Cash management that involves bank reconciliations and invoice processing falls in their docket too and this is a service that they should be able to offer to the company which outsources them. In the case of cash flow reporting and fixed asset register they take up the reports of the company once they are taken up to do the job. Finally, in management reporting they take up trial balance and nominal ledger listings. They also have to issue reports monthly on the accounts status of the company after the compilation of the various facets that comprise accounting services of the firm.

In case you are in need of someone to take up some pressing need for financial and also accounting support the said firms can offer one of their specialists to undertake the job on site right away for as long as it takes for you to be able to find a suitable person to take up the job.

These firms also plan and file procedures and then bring together finance procedures           manuals. They also assess in-house controls and also work process of the company’s finance role.

The functions of outsourcing financial services in Singapore go by the demand that is requested by the company that is engaging the experts to do the work for them. The services therefore vary from one company to another depending on the agreement.