SINGAPORE

Meru Accounting provides customized outsourced accounting and bookkeeping services designed to address the specific needs of businesses operating in Singapore. Our team has the expertise of managing Singapore’s financial regulations and is proficient in the leading accounting software widely used in the country. We offer comprehensive financial management solutions to streamline your business operations, ensuring full compliance with local regulatory requirements.

In Singapore, the main indirect tax is the Goods and Services Tax (GST). Some of the indirect tax laws in Singapore are as follows:

1. Goods and Services Tax (GST): GST is a consumption tax levied on the supply of goods and services in Singapore .The current standard rate of GST is 7%.Certain goods and services are exempt from GST, such as financial services, residential properties, and most basic food items.
2. GST Invoices and Records : Registered businesses are required to issue tax invoices that comply with GST regulations for all taxable supplies. They must maintain proper accounting records and retain invoices and documents related to transactions for at least five years.
3. GST Returns: Registered businesses must file GST returns to the Inland Revenue Authority of Singapore (IRAS) on a regular basis (usually quarterly).GST returns detail the output tax (GST collected) on sales and input tax (GST paid) on purchases, determining the net GST payable or refundable.
4. Penalties and Enforcement: Non-compliance with GST regulations, such as late filing or incorrect reporting, may result in penalties and interest charges imposed by IRAS.IRAS conducts audits and investigations to ensure compliance with GST laws and regulations.

In Singapore,   bookkeeping and accounting software are an essential tool for businesses in Singapore and globally, streamlining financial processes and ensuring accurate record-keeping. A few of them are listed below:

1.Metro Accounting System: Comprehensive accounting solution designed specifically for businesses in Singapore, offering a range of features tailored to local regulatory requirements such as Customer approval, invoicing, expense tracking  ,GST compliance and GST & Corporate income tax submission.

2.Zoho Books: Zoho Books offers accounting and invoicing features, along with project management and CRM integration. It's suitable for small businesses looking for a comprehensive business management solution.

3.Wave Accounting: It is an accounting software which is free of cost and is often used by  small businesses  in Singapore. It has many accounting features and tools without a subscription fee.

4.NetSuite: NetSuite, now owned by Oracle, is a cloud-based ERP system that includes financial management modules suitable for larger businesses in Singapore.

5.Xero: Xero is widely adopted by small to medium-sized businesses in Singapore. It offers features for invoicing, bank reconciliation, expense claims, and financial reporting.

The Singapore dollar (SGD) is the most and only used currency of Singapore. The symbol of the currency is S$. It is divided into 100 cents.In Singapore, bookkeeping and accounting rely on the Singapore Dollar (SGD), Efficiently managing financial transactions, reliably, day by day. It is used for all the payments, employee wages and other financial transactions. Singapore dollar is considered the 12th most traded currency in the world

In Singapore, there are mainly four official languages which includes English, Mandarin Chinese, Malay, and Tamil.English serves as the primary language For bookkeeping and accounting tasks each day as it brings  clear communication and precision . Ensuring financial records are kept in a consistent and reliable way.

 English is the primary language used in education, government, business, and everyday communication, while Mandarin, Malay, and Tamil are also widely spoken by various ethnic communities in Singapore.

In Singapore, audits are primarily governed by the Companies Act and the Singapore Financial Reporting Standards (SFRS). Here are some key requirements related to audits in Singapore:

1.Mandatory Audit: All companies incorporated in Singapore, unless exempted, are required to appoint an auditor within 3 months of incorporation and have their financial statements audited annually.

2.Financial Reporting Standards: Companies must prepare their financial statements in accordance with the Singapore Financial Reporting Standards , which are based on the International Financial Reporting Standards.

3.Annual General Meeting (AGM): The audited financial statements must be presented at the AGM within 6 months from the end of the company’s financial year.

4.Statutory Requirements: Auditors must comply with statutory requirements, including independence, professional competence, and ethical standards.

Payroll in Singapore involves several key considerations to ensure compliance with local regulations and efficient administration. Here are the main aspects:

1.Salary Calculation: Salaries must be calculated based on the employment contract terms, including basic salary, allowances, bonuses, and benefits. Overtime pay, if applicable, must also be accounted for.

2.CPF Contributions:  Here employers have to compulsorily make  CPF contributions . Here all the contribution rates vary  and depends on age and wage levels of employees.

3.Taxation: Employers must deduct income tax (known as "tax withholding") from employees' salaries based on the prevailing tax rates. Tax is then paid to IRAS.

4.Statutory Leave and Benefits: Employers must provide statutory leave such as annual leave, sick leave, and maternity/paternity leave as per the Employment Act and other relevant regulations.

5.Payroll Processing: Payroll should be processed accurately and on time each month. This includes calculating deductions, CPF contributions, and ensuring compliance with employment laws.

6.Year-End Reporting: Employers must issue itemized pay slips to employees and submit annual tax forms (Form IR8A) to IRAS summarizing employees' income and deductions.

In Singapore, financial reporting standards are primarily guided by the Singapore Financial Reporting Standards (SFRS), which are largely based on the International Financial Reporting Standards (IFRS).

1.Singapore Financial Reporting Standards (SFRS): The primary accounting standards used for financial reporting by companies in Singapore. They are aligned with IFRS with some modifications to suit local regulatory and economic circumstances.

2.Specific Standards and Interpretations: Apart from the core SFRS, there are specific standards and interpretations issued by the Accounting Standards Council (ASC) of Singapore that companies must adhere to.

3.Compliance and Enforcement: The Accounting and Corporate Regulatory Authority (ACRA) oversees compliance with accounting standards and financial reporting requirement, it can result in penalties and sanctions under the Companies Act.

4.Consistency and Comparability: Financial statements must be prepared on a consistent basis from one period to the next to ensure comparability. Changes in accounting policies or estimates must be disclosed along with their impact on financial statements.

At Meru Accounting, we monitor and analyse the indirect tax laws of Singapore including Goods and Services Tax , GST invoices and records etc. Payroll system of Singapore which includes Year end reporting, taxation, Statutory Leave and Benefits for employees is deeply understood and then implemented for bookkeeping and accounting. Audits requirements are met efficiently. So there is an easy path for businesses to work on with full accessibility and knowledge of all the laws framed by accounting  regulatory bodies of Singapore.