Businesses that plan to open their next hubs in Singapore are typically faced with HR challenges that are unique to the island-state. The city-state has a set of strict regulations when it comes to corporate compliance, maintaining which can be a complex affair. Singaporean law requires companies to abide by the Employment Act (EA) along with the Central Provident Fund (CPF), and the Income Tax Act. To ensure that your business remains operational, you will have to see that employees are duly paid out within 7 days of the culmination of the last pay cycle, along with a set of other formal requirements.
Benefit from Tax Consultation
While selecting the right payroll services singapore, companies need to find a service that can offer coherent tax consultation, considering all aspects with due effect. A flat 17% corporate tax rate is imposed on chargeable income, and the tax is generally considered on a territorial basis. This means that the tax is primarily calculated on the income sourced within the city-state. The source income can also be derived from an overseas initiative, but as long as it is received in Singapore, taxes apply.
Companies doing business in Singapore are generally considered tax-residents if the company management has been based in Singapore during the preceding year of tax assessment. Given these key factors, it is crucial to find an HR service that has the experience to provide feasible tax consultation.
It’s a Profitable Venture
On the expenditure front, outsourcing the payroll tasks to a Singaporean company can be a profitable enterprise. This is because companies can save on the costs of HR training, salaries, and infrastructure if they have to set up an in-house team. Since it is easy to obtain a quote on how much you will have to spend, you can effectively calculate the savings you make year-on-year by outsourcing your payroll to an experienced HR network based in South Asia.
