RESOURCES
Administrative concession for correcting errors on GST Returns
From 1 January 2024, as an administrative concession, you may choose to adjust for the errors made in your next GST F5 if you meet both of these criteria:
- The net GST amount in error (i.e. output tax error - input tax error) for all the affected prescribed accounting periods is not more than $3,000; and
- The total non-GST amounts in error for (each of) the affected accounting period(s) is not more than 5% of the total value of supplies declared in the submitted GST return (i.e. Box 4). In the case where there was no supply made in the affected accounting period, the 5% rule applies to the total value of the taxable purchases (i.e. Box 5).
Corporate Income Tax (“CIT”) Rebate for the Year of Assessment (“YA”) 2024, with a CIT Rebate Cash Grant for eligible companies
To help companies manage rising costs, a CIT Rebate of 50% of tax payable will be granted for YA 2024. Companies that have employed at least one local employee in 2023 (referred to as “local employee condition”) will receive a minimum benefit of $2,000 in the form of a cash payout (referred to as “CIT Rebate Cash Grant”).
Companies that have met the local employee condition will automatically receive the CIT Rebate Cash Grant by 3Q 2024. The CIT Rebate, less any CIT Rebate Cash Grant received, will be automatically incorporated in companies’ tax assessments raised after they file their Form C-S/ Form C-S (Lite)/ Form C for YA 2024.
For example, Company A hired two local employees in 2023. It has a CIT assessment of $30,000 for YA 2024. Company A will receive a $2,000 CIT Rebate Cash Grant by 3Q 2024. It will receive another $13,000 [(50% *$30,000) - $2,000] in CIT Rebate in its YA 2024 CIT assessment. The maximum total benefits of CIT Rebate and CIT Rebate Cash Grant that a company may receive is $40,000.
A company is considered to have met the local employee condition if it has made CPF contributions to at least one local (i.e., Singapore Citizen or Permanent Resident) employee, excluding shareholders who are also directors of the company, in the calendar year 2023.
Reminder to File Annual Return
All Singapore-incorporated companies are required to file their annual returns with ACRA. The timelines for companies with Financial Year End (FYE) on or after 31 Aug 2018 are as follows:
| Listed companies | Non-listed companies | |
| All companies | Within 5 months after FYE | Within 7 months after FYE |
| Companies having a share capital and keeping a branch register outside Singapore | Within 6 months after FYE | Within 8 months after FYE |
Companies can file their annual returns in the BizFile+ portal or file seamlessly by using the accounting software jointly developed by software vendors to automate the preparation and filing of ARs with us.
A late lodgement penalty of up to $600 for each late filing may be imposed on late filers.
Increase in CPF Contribution Rates from 1 January 2023
(a) The CPF contribution rates for employees aged above 55 to 70 will be increased to strengthen their retirement adequacy. The changes will apply to wages earned from 1 January 2023:
(b) The increase in the CPF contribution rates will be fully allocated to the employees’ Special Account to provide a bigger boost to their retirement income.
(c) For those earning monthly wages of more than $500 to $750, the employee contribution rates will continue to be phased in.
(d) There are no changes to the graduated contribution rates for first and second year Singapore Permanent Residents (SPRs).
(e) There are no changes to the Ordinary Wage (OW) Ceiling and Additional Wage Ceiling.
Covid 19 Pandemic Pay Cut Notification to MOM to Cease from 1 August 2022
From 1 August 2022 onwards, Employers with 10 employees or more, no longer require to notify MOM if they implement any cost-saving measures that affect employees' salaries.
Progressive Changes to GST Rate to 9%
In Budget 2022, the Minister for Finance announced that the GST rate will be increased from:
(i) 7% to 8% with effect from 1 Jan 2023; and
Contact us if you would like to know more and require assistance to bridge the gap between you and your software provider.
Increase in Penalty for Late Filing in 2022
With effect from 14 Jan 2022, there will be higher penalties for late filing of the annual lodgments by Singapore-incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs).
Under the 2-tier penalty framework, first announced in Dec 2020, the penalty for late filing of the annual lodgments will be $300 within the first 3 months after the due date or $600 if the lodgment is filed more than 3 months after the filing due date. This applies to annual lodgments that are due on or after 14 Jan 2022. For annual lodgments due before 14 Jan 2022, the existing penalty framework continues to apply.
We encourage all entities to file their annual lodgments on time to avoid incurring the higher penalty.
Singapore-incorporated companies and VCCs are required to file Annual Returns (AR) within 5 or 7 months after financial year-end for listed and non-listed companies respectively. LLPs are required to file Annual Declarations (AD) within 15 months of registration and subsequently, once in every calendar year within 15 months of the last lodgment.
Please refer to the table below:
| Late Filing Penalty for Annual Lodgment | ||
|---|---|---|
| Entity Type | Filing due on or after 14 Jan 2022 | Filing due before 14 Jan 2022 |
| Local companies | (i) $300 within the first 3 months after filing due date; or (ii) $600 after the 3 months. | Flat rate of $300 |
| Variable Capital Companies (VCC) | ||
| Foreign Companies | 8-tier penalties ranging from $50 to $350 | |
| Limited Liability Partnership (LLP) | ||
Penalty for late ad hoc filings
For all ad hoc filings for companies, LLPs and businesses such as change in entity information or personal particulars of the officers or business owners, the existing penalty framework will continue to apply for late filing of such lodgments.
For ad hoc filings by VCCs, the 2-tier penalty framework will apply for all late filings with effect from 14 Jan 2022.
Please refer to the table below:
| Late Filing Penalty for Ad hoc Filing | ||
|---|---|---|
| Entity Type | Filing due on or after 14 Jan 2022 | Filing due before 14 Jan 2022 |
| Local companies Foreign companies Limited liability partnership Limited partnership | 8-tier penalties ranging from $50 to $350 | |
| Businesses (Sole proprietorship and partnership) | 8-tier penalties ranging from $10 to $250 | |
| Variable Capital Companies | (i) $50 within the first 3 months after filing due date; or(ii) $200 after the 3 months. | 8-tier penalties ranging from $50 to $350 |
Any penalty payable will be reflected and imposed at the point of lodgment via BizFile+ and VCC portals.
Type of Passes For Employment
All foreigners who intend to work in Singapore must have a valid pass (commonly known as a work visa) before they start work. If you are engaging foreigners to work in Singapore, you must ensure that they hold a valid pass. Find out which pass is suitable, if they are eligible and how to apply.
Professionals
| Pass type | Who is it for |
|---|---|
Employment Pass | Fixed monthly salary comparable to the top one-third of local PMET salaries, starting from $5,000 and increases progressively with age, up to $10,500 for those in the mid-40s. |
EntrePass | For eligible foreign entrepreneurs who are keen to start and operate a business in Singapore that is venture-backed or possesses innovative technologies. |
Personalised Employment Pass | For high-earning existing Employment Pass holders or overseas foreign professionals. The PEP offers greater flexibility than an Employment Pass. |
Skilled and semi-skilled workers
| Pass type | Who is it for | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
S Pass |
| ||||||||||||
Work Permit for migrant worker | For semi-skilled migrant workers in the construction, manufacturing, marine shipyard, process or services sector. | ||||||||||||
Work Permit for migrant domestic worker | For migrant domestic workers (MDWs) to work in Singapore. | ||||||||||||
Work Permit for confinement nanny | For Malaysian confinement nannies to work in Singapore for up to 16 weeks starting from the birth of the employer's child. | ||||||||||||
Work Permit for performing artiste | For foreign performers working in public entertainment outlets such as bars, hotels and nightclubs. |
Trainees and students
| Pass type | Who is it for |
|---|---|
Training Employment Pass | For foreign professionals undergoing practical training. Candidates must earn at least $3,000 a month. |
Work Holiday Pass (under Work Holiday Programme) | For students and graduates aged 18 to 25 who want to work and holiday in Singapore for 6 months. |
Work Holiday Pass (under Work and Holiday Visa Programme) | For Australian students and graduates aged 18 to 30 who want to work and holiday in Singapore for 1 year. |
Training Work Permit | For semi-skilled foreign trainees or students undergoing practical training in Singapore for up to 6 months. |
Family members
| Pass type | Who is it for |
|---|---|
Dependant's Pass | For spouses and children of eligible Employment Pass or S Pass holders. |
Long Term Visit Pass | For parents, common-law spouses, step-children or handicapped children of eligible Employment Pass or S Pass holders. |
Pre-approved Letter of Consent | For eligible spouses or children of Singapore citizens or PRs holding an LTVP/LTVP+ issued by ICA. The holder is pre-approved to work in Singapore. They can only apply for a PLOC when applying for, or renewing the LTVP/LTVP+. |
Letter of Consent for ICA-issued LTVP/LTVP+ holders | For eligible spouses or children of Singapore citizens or PRs holding an LTVP/LTVP+ issued by ICA. The LOC allows the holder to work in Singapore. The employer must apply for the LOC. |
Letter of Consent for Dependant’s Pass holders who are business owners | For eligible Dependant’s Pass holders who wish to operate a business. |
Exemptions and working while on a visit pass
| Pass type | Who is it for |
|---|---|
Miscellaneous Work Pass | For foreign speakers, religious workers and journalists taking on a short-term work assignment of up to 60 days in Singapore. |
Work Pass Exempt Activities | For performing eligible short-term activities without a work pass. Candidates must still notify MOM of their activities. |
Work pass exemption for foreign students | For foreign students studying full-time at an approved school or institution in Singapore. |
Work passes for holders of Long Term Visit Passes issued by ICA | For foreigners married to a Singaporean or permanent resident, or parents accompanying a child who is studying in Singapore. |