GOODS AND SERVICES TAX (GST) Introduction to GST

Transcription

1 GOODS AND SERVICES TAX (GST) Introduction to GST

2 E-LEARNING 2 Introduction to GST course can now be done online! e-learning mode is strongly encouraged over seminar Benefits include: - On-demand availability: accessible anytime and anywhere at your convenience - Self-pacing: control over the pace of learning and modules can be reviewed as often as needed - Interactivity: higher knowledge retention through active learning and use of examples and interactive exercises etc. For more information, please visit: > GST > For GST-registered businesses > GST Course "Introduction to GST" (e-learning/seminar)

3 COURSE OUTLINE 3 1. GST and My Responsibilities 2. Charging GST on Sales 3. Accounting for GST on Other Transactions 4. Claiming GST on Business Purchases and Imports 5. Price Display, Invoicing and Record-keeping BREAK 6. e-filing GST returns and Correcting Mistakes 7. Penalties and Recovery Actions 8. Tips on Compliance 9. Notifying of Changes to Business and Cancelling GST Registration 10. Where to Get Help Useful Information Q&A

4 1. GST and My Responsibilities 4 What is GST? How does GST Work? What are the Responsibilities of a GST-registered Business? Relevant e-tax Guides: GST: General Guide For Businesses Do I Need to Register?

5 1. GST and My Responsibilities 5 What is GST? Tax on domestic consumption of goods and services and importation of goods Paid when: - Goods or services are purchased from GSTregistered businesses - Goods are imported into Singapore (collected by Singapore Customs at point of importation) Self-assessed tax

6 1. GST and My Responsibilities 6 How does GST Work? GST on supply of goods & services (Output tax) less GST paid on business purchases (Input tax) equals Net GST + Payable to Comptroller - Refundable from Comptroller

7 1. GST and My Responsibilities 7 Overseas Supplier Import GST = $35 $500 + $35 (7% GST) GST-Registered Wholesaler Output tax = $49 Input tax = $35 Net GST payable = $14 $700 + $49 (7% GST) GST-Registered Retailer Output tax = $70 Input tax = $49 Net GST payable = $21 End-consumer $ $70 (7% GST)

8 1. GST and My Responsibilities 8 What are the Responsibilities of a GST-registered Business? A GST-registered business must: 1.Submit returns and pay tax in a timely manner 2.Submit accurate GST returns 3.Maintain listings and keep business and accounting records for 5 years 4.Assist in GST audit 5.Display prices with GST 6.Reflect GST registration number on all tax invoices and receipts 7.Inform IRAS of changes to the business 8.Account for GST on business assets held at point of de-registration In the subsequent parts of this course, you will learn how to fulfill these 8 basic responsibilities.

9 2. Charging GST on Sales 9 Scope of Tax Value of Supply Subject to GST Absorbing GST Accounting for GST Bad Debt Relief Claim Relevant e-tax Guides: GST: General Guide For Businesses GST: Time of Supply Rules GST: A Guide on Export Do I Need to Register? Accounting for GST Absorbed by Businesses

10 2. Charging GST on Sales 10 Scope of Tax GST-registered businesses should charge GST on any supply of goods or services if it is : i) made in Singapore ii) iii) iv) a taxable supply made by a taxable person in the course or furtherance of the business

11 2. Charging GST on Sales 11 Goods or Services? Goods Possessions obtained in exchange for money or in kind Generally tangible objects Could be new or second-hand Example: Furniture Services Anything that is not goods Performance of duty or work for another person Generally intangible Example: Hairdressing Service Utilities (e.g. water, electricity) and space for rent/ sale are treated as goods for GST purposes.

12 2. Charging GST on Sales 12 i) Is the supply made in Singapore? Goods are supplied in Singapore if the goods are in Singapore or from Singapore at the time of supply Services are supplied in Singapore if the supplier belongs in Singapore

13 2. Charging GST on Sales 13 ii) Is the supply taxable? Taxable supply refers to the supply of goods or services made in Singapore, other than an exempt supply and outof-scope supply. Examples of types of supplies TAXABLE SUPPLIES 1. Standard-Rated Supply (7% GST) Local sales of goods & services Sale of Capital Assets 2. Zero-Rated Supply (0% GST) Export of Goods International Services NON-TAXABLE SUPPLIES 1. Exempt Supply Sale and Lease of Residential Properties Financial Services Local Sale of Investment Precious Metals (IPM) 2. Out-of-Scope Supply Third Country Sales (Sales outside Singapore) Transhipments Disbursements

14 2. Charging GST on Sales 14 iii) Who is a taxable person? A person that is GST-registered or is required to be registered for GST under the GST Act.

15 2. Charging GST on Sales 15 GST registration liability Registering for GST is compulsory when: - Your taxable turnover for the current quarter and the past 3 quarters is more than $1 million (unless you are certain that your turnover in the next 12 months will not exceed $1 million); or - You have started or intend to start making sales, and you can reasonably expect your taxable turnover to exceed S$1 million in the next 12 months Otherwise, the business need not register for GST, unless it chooses to do so voluntarily Additional responsibilities for voluntarily registered businesses remain GST-registered for at least 2 years make taxable supplies within 2 years if you have not started making taxable supplies at the point of registration The Comptroller may also impose other conditions and may cancel your GST registration if any of the conditions are not met.

16 2. Charging GST on Sales 16 GST registration liability - Rules for Sole-proprietorship (Owned by an Individual) Combine the turnover of all SPship businesses to ascertain the liability to register GST registration is in the name of the SP, not the SPship business (i.e. Mr Tan owns ABC Company, GST registration will be in the name of Mr Tan) All SPship businesses under the SP s name will be GST-registered. This includes any SPship business which you may set-up in the future SP should use the same GST registration number to charge GST for all existing SPship businesses and any newly set-up SPship business Notify IRAS of any new SPship business by sending in its ACRA Business Profile

17 2. Charging GST on Sales 17 GST registration liability - Rules for Sole-proprietorship (example) You are a sole proprietor with 2 sole-proprietorship businesses (Business A and B) and you drive a taxi on a part-time basis. In the past 12 months, the turnover of Business A is $500,000, the turnover of Business B is $490,000 and the income derived from your taxi driving is $30,000. Total Turnover/Income = $500,000 + $490,000 + $30,000 = $1,020,000 As the combined turnover (including the income from the taxi driving) has exceeded $1 million, you must register for GST immediately if you can reasonably expect your total turnover to be more than $1 million for the next 12 months.

18 2. Charging GST on Sales 18 GST registration liability - Rules for Partnership (PP) GST registration will be in the name of the respective PP businesses Once your PP is GST-registered, you are required to account for output tax on all taxable supplies in connection with any separate businesses comprising of the same partners.

19 2. Charging GST on Sales 19 GST registration liability - Rules for Partnership (example) You and Mary are partners and have 2 partnership businesses (Business C and D). You also have another partnership business (Business E) with John. In the past 12 months, the turnover of Business C is $200,000, the turnover of Business D is $300,000 and the turnover for Business E is $600,000. Business Turnover (partnership with Mary) = $200,000 + $300,000 = $500,000 As the combined turnover for all partnership businesses with the same composition of partners is $500,000, you need not register for GST if you can reasonably expect your business turnover to be less than $1 million for the next 12 months. However, you may wish to apply for voluntary GST registration.

20 2. Charging GST on Sales 20 iv) What is meant by in course or furtherance of the business? Activities carried out in connection to the business either directly (e.g. sales of trading stocks) or incidentally (e.g. recovery of expenses from a related company).

21 APPLICATION EXERCISE 21 Supplies Standard- Rated (7% GST) Zero-Rated (0% GST) Exempt Out-of-scope a) Sale of $400,000 worth of goods sent to a local customer which he exports to Japan. b) Deposit of $35,000 in a local bank, which yielded an interest of $1,500. c) Deposit of $35,000 in an overseas bank, which yielded an interest of $1,500.

22 APPLICATION EXERCISE 22 Scenarios Taxable Supply? Made by taxable person? In course or furtherance of business? Charge GST? d) A GST-registered art dealer bought a painting in London, sells and directly sends it to his customer in Japan. e) A GST-registered art dealer imported a painting from London, sells and exports it to his customer in Japan. f) A GST-registered sole-proprietor receives income (fares) from part time taxi-driving. N Y Y Y Y Y Y Y Y N (out-of-scope) Y (0%) Y (7%)

23 APPLICATION EXERCISE 23 Scenarios Taxable Supply? Made by taxable person? In course or furtherance of business? Charge GST? g) A non-gst registered developer constructs and sells solely residential properties. h) A GST-registered developer develops and sells residential and commercial properties in a mixed development project in Singapore. i) A GST-registered developer develops and sells commercial properties outside Singapore. N N Y Y (Commercial) Y Y N Y Y N (exempt) Y (7% - commercial) (Exempt - residential) N (out-of-scope)

24 2. Charging GST on Sales 24 Value of Supply Subject to GST Value of Supply Example I give a 10% discount as a sales promotion. a) Trade discount Net discounted price GST will be chargeable on the net discounted price. Note: This clause should be clearly stated in the invoice.

25 2. Charging GST on Sales 25 Value of Supply Example b) Transactions with related parties Open Market Value (OMV) of goods Co. A (GST-registered), sold the company s furniture (market value $5,000) to one of its directors at $800. Value of supply = $5,000 GST = $5,000 x 7%

26 2. Charging GST on Sales 26 Absorbing GST To maintain competitiveness or as a form of goodwill, you may choose to absorb the GST payable by your customer The sum of money received from your customer will be treated as inclusive of GST The GST to be accounted for is based on the tax fraction of 7/107 of the consideration received Example: You sell a good at $100. If you choose to absorb the GST, $100 is treated as inclusive of GST. Value of Supply = $100 X 100/107 = $93.46 GST = $100 X 7/107 = $6.54

27 2. Charging GST on Sales 27 Accounting for GST In general, you should account for GST at the earlier of the following events: Invoice issued; or Payment received For more information, you may refer to the e-tax Guide GST: Time of Supply Rules. Note: Prior to 1 January 2011, the general time of supply rule is the earliest of the following events: 1.Goods removed/made available or Services performed; ( Basic Tax Point ) 2.Tax invoice issued (subject to 14-day rule); or 3.Payment received BASIC TAX POINT & 14-DAY RULE NOW REMOVED

28 APPLICATION EXERCISE 28 Total value of goods sold = $11,000 Goods removed (Value = $11,000) Invoiced for $11,000 and received partpayment of $5,000 Received remaining payment of $6,000 01/01/12 31/01/12 01/02/12 Account for GST on: 31/01/12 (on $11,000)

29 2. Charging GST on Sales 29 Bad Debt Relief Claim A bad debt situation occurs when money owed cannot be recovered. Bad debt relief claim can be made on output tax that was previously accounted for and paid to IRAS if you meet the conditions below: Conditions 1 I have supplied goods or services for a consideration in money and have accounted for and paid GST on the supply. 2 I have written off the whole or any part of the consideration for the supply as a bad debt in my accounts. 3 A period of 12 months beginning with the date of supply has elapsed or the debtor has become insolvent before the period of 12 months has elapsed. 4 I have taken reasonable steps to recover the debts. Please complete the "Self-review of Eligibility to Claim Bad Debt Relief" form ( Quick links> Forms>GST) before making the claim in your current GST return. Do not submit the form to IRAS unless requested.

30 3. Accounting for GST on Other Transactions 30 Giving Goods and Services for Free Fringe Benefits to Staff Recovery of Expenses Sale of Business/Capital Assets Trade-in Transaction Relevant e-tax Guides: GST: General Guide for Businesses Fringe Benefit Use of Business Premises By Third Party for Free GST: Guide on Reimbursement and Disbursement of Expenses

31 3. Accounting for GST on Other Transactions Giving Goods and Services for Free Giving Services for Free No output tax needs to be accounted for as there is no supply Giving Goods for Free (i.e. Free Gifts) Prior to 1 Oct 2012 Deemed as supply of goods Output tax to be accounted for based on the OMV of goods in the following situations: o GST was incurred on purchase of goods; o o Cost of gift > $200; or Cost of gift $200, but 3 or more gifts were given to the same person within 3 months From 1 Oct 2012 You only need to account for output tax if the cost of each gift exceeds $200; and If input tax on those goods has been allowed to you. 31

32 3. Accounting for GST on Other Transactions 32 Fringe Benefits to Staff Prior to 1 Oct 2012 Goods and services given free to all employees Output tax to be accounted for on goods given free except in the following situations: 1. Cost of gift $200 and it does not form a series of 3 or more gifts (regardless of value) given to the same person within 3 months; 2. It is a free supply of food or accommodation Output tax to be accounted for if GST was incurred on the purchase With effect from 1 Oct 2012 Output tax to be accounted for on goods given free except in the following situations: 1. A free supply of food or accommodation; 2. Gifts of value not more than $200 each; or 3. Gifts for which no credit for input tax has been allowed on its purchase.

33 3. Accounting for GST on Other Transactions Recovery of Expenses 33 Prior to 31 May 2013 A recovery of expense is considered as a separate supply for GST purposes (i.e. a reimbursement) and hence, subject to GST, as long as it does not meet the following conditions for disbursements: Conditions for disbursements The other party is responsible for paying the supplier; The other party knows that the goods or services would be provided by that supplier; The other party authorised you to make the payment on his behalf; The other party is the recipient of the goods or services; The payment is separately itemised when you invoice the other party; You recover only the exact amount paid to the supplier; and The goods or services paid for are clearly additional to the supplies you make to the other party.

34 3. Accounting for GST on Other Transactions Recovery of Expenses 34 With effect from 31 May 2013 GST treatment for any recovery of expenses will be as follows: The recovery of expenses is GST treatment Input tax claim If you incur the expenses as a principal a reimbursement The recovery of the expenses from another party may amount to a supply and may be subject to GST or exempt from GST, as the case may be. You are entitled to claim input tax incurred on goods or services procured by you if the subsequent recovery of such expenses constitute a taxable supply. If you pay the expenses as an agent a disbursement The recovery of expenses does not constitute a supply and hence will not be subject to GST. You are not entitled to any input tax claim since the goods or services are not supplied to you but to your principal.

35 3. Accounting for GST on Other Transactions 35 Sale of Business/Capital Assets GST-registered businesses must account for GST on all taxable supplies made GST is chargeable on the sale of business/capital asset though it is not considered the main business activity For example, sale of office equipment, factory or old furniture is subject to GST

36 3. Accounting for GST on Other Transactions 36 Trade-in Transaction Treated as 2 separate supplies for GST purpose GST must be accounted for on the value of the 2 separate supplies Incorrect to account for GST on the net difference only

37 3. Accounting for GST on Other Transactions 37 A Year End Sale Not to be Missed!!! Photocopiers are going at an unbeatable price of $650 only!! Even more incredible news!!! Trade in your old photocopier for a BRAND NEW photocopier for only $450!! Unbelievable but true!! So come on down to our stores now!!! If both buyer and supplier are GSTregistered and buyer traded-in an old photocopier for a new photocopier: 1) Buyer needs to issue a tax invoice to supplier for $200 x prevailing GST rate. 2) Supplier needs to issue a tax invoice to buyer for $650 x prevailing GST rate. If buyer is GST-registered but supplier is not: 1) Buyer needs to issue tax invoice to supplier for $200 x prevailing GST rate. 2) Supplier cannot charge GST on $650.

38 4. Claiming GST on Business Purchases and Imports 38 Conditions for Claiming Input Tax Disallowed Expenses Claiming Input Tax Claiming Input Tax on Purchases Paid in Foreign Currency Situations where Input Tax Claims are Disallowed Claiming Pre-registration Input Tax Repayment of Input Tax Relevant e-tax Guides: GST: General Guide For Businesses Exchange Rates for GST Purposes GST Guide on Imports

39 4. Claiming GST on Business Purchases and Imports 39 Conditions for Claiming Input Tax You can claim GST incurred on your purchases as input tax if: You are GST-registered; The goods or services have been supplied to you or the goods have been imported by you; The goods or services are used or to be used for the purpose of your business; The input tax is directly attributable to taxable supplies or out-of-scope supplies which would be taxable if made in Singapore; The input tax claims are supported by tax invoices/ simplified tax invoices addressed to you. For imports, the claims should be supported by import permits showing you as the importer of the goods; and The input tax claims are not disallowed expenses under Regulation 26 and 27 of the GST (General) Regulations

40 4. Claiming GST on Business Purchases and Imports 40 Disallowed Expenses You are not allowed to claim input tax incurred on the following expenses: a)club subscription fees b)medical and accident insurance premiums* c)medical expenses* d)benefits provided to family members/relatives of your staff e)cost and running expenses of motor cars f)any transaction involving betting, sweepstakes, lotteries, fruit machines or games of chance *Except those obligatory under the Work Injury Compensation Act or under any collective agreement within the meaning of the Industrial Relations Act.

41 4. Claiming GST on Business Purchases and Imports 41 Claiming Input Tax Tax invoices and import permits are the primary documents for input tax claim and must be maintained to support the claim Other relevant documents like payment evidence, invoice from overseas supplier etc. must also be maintained Import permits should reflect your company as the importer of the goods Input tax to be claimed in the accounting period corresponding to the date shown in the tax invoice and import permit

42 4. Claiming GST on Business Purchases and Imports 42 Claiming Input Tax on Purchases Paid in Foreign Currency For invoicing in foreign currency, your supplier must convert the following items in the tax invoice into Singapore dollars using an approved exchange rate for GST purposes: - Total amount payable excluding GST; - Total GST payable; and - Total amount payable including GST You should claim the GST incurred based on the Singapore dollar amount shown on the tax invoice

43 4. Claiming GST on Business Purchases and Imports 43 Situations where Input Tax Claims are Disallowed Case 1 No valid supporting document Tax invoice issued in Co X s name The purchases were for Co Y s use Co Y claimed input tax based on this tax invoice Co Y s input tax claims will be disallowed Case 2 Private Expenditure Mr. X (GST-registered sole-proprietor) holds tax invoices issued to him The GST was incurred for the purchase for a piano used at home Expenditure is of private nature Mr. X's input tax claims will be disallowed

44 APPLICATION EXERCISE 44 No Scenarios Yes or No 1 2 My company owns a motorcar for business use. Can I claim for the purchase, petrol and parking charges? My company purchased goods from overseas and will import the goods into Singapore. My forwarder has declared my related company as the importer. Can my related company or my company claim the GST on import? No No 3 I allow my staff to claim for their handphone bills. The handphone bill is in my staff s name. Can I claim the GST? Yes (For business purposes only)

45 4. Claiming GST on Business Purchases and Imports 45 Claiming Pre-registration Input Tax For purchases made before your GST registration, you can claim the GST incurred if all the following conditions are satisfied: GOODS 1. Goods are purchased or imported in the course of business for making taxable supplies. 2. Goods are not consumed or supplied before date of GST registration. 3. A stock account is maintained with these details - date of purchase, quantities purchased etc. SERVICES 1. Services are purchased for and supplied in the course of business for the making taxable supplies. 2. Services are not related to goods/services already supplied or consumed before date of GST registration. 3. Services are not supplied more than 6 months before date of GST registration. 4. Record is maintained with these details - description of services; date of purchase; and date of disposal (if any).

46 4. Claiming GST on Business Purchases and Imports 46 Claiming Pre-registration Input Tax How to claim? 1) Download and complete the Self-Review for Eligibility to Claim Pre-Registration Input Tax form ( > Quick links > Forms > GST) 2) Do not submit the form to IRAS unless requested. 3) Claim pre-registration input tax only in your first GST F5 return. If the GST F5 return has been submitted, to request for GST F7 to amend the GST F5 submitted.

47 APPLICATION EXERCISE 47 GST registration date : 01/01/2013 GST Incurred on Goods: Invoice Date Description Amount Claimable? i) 01/11/12 Purchase of stocks which were sold on 15/1/13 ii) 30/11/12 Utilities charges $1,000 $300 Yes No iii) 15/12/12 Office rental $2,500 No iv) 01/12/12 Goods imported and sold on 31/12/12 $900 No

48 APPLICATION EXERCISE 48 GST registration date : 01/01/2013 GST Incurred on Services: Invoice Date Description Amount Claimable? v) 01/05/12 Management fee $1,000 vi) 30/11/12 Consultancy fee $2,000 vii) 01/11/12 Commission paid $500 for goods sold on 01/11/12 No Yes No

49 4. Claiming GST on Business Purchases and Imports 49 Repayment of Input Tax If you have not paid your supplier within 12 months from the due date of payment but have claimed the GST as input tax in your GST F5 return, you are required to repay the GST claimed Do so in the first GST F5 after the 12-month period by: 1. Reducing the value of your taxable purchases (Box 5, Value of taxable purchases ); and 2. Reducing the value of the input tax claim (Box 7, Input tax and refunds claimed ).

50 5. Price Display, Invoicing and Record-keeping 50 Displaying Prices Invoicing Customers Keeping Records Relevant e-tax Guides: GST: General Guide For Businesses Exchange Rates for GST Purposes Basic Record Keeping Guide for GST-registered Businesses Keeping Machine-sensible Records and Electronic Invoicing Keeping of Records in Imaging Systems

51 5. Price Display, Invoicing and Record-keeping 51 Displaying Prices Any price displays (e.g. price tags, price lists, publicity brochures, advertisements) or quotations in respect of goods or services made to the public, be it written or verbal, must be shown inclusive of GST Failure to comply is an offence Exception: - Hotel and Food & Beverage (F&B) industries where goods and services are subject to service charge may display GST exclusive price - A statement informing customers that prices displayed are subject to GST and service charge must be prominently shown

52 APPLICATION EXERCISE 52 Displaying prices: Which are acceptable? Price Displayed as $107 $107 (inclusive of GST) $100 + $100 + GST $ % GST $100 + $7 GST Acceptable? Yes Yes No No No No

53 5. Price Display, Invoicing and Record-keeping 53 Invoicing Customers Issuing tax invoices Importance of tax invoice When to issue a tax invoice? When not to issue a tax invoice? Primary supporting document for input tax claims Must be issued if making a standardrated supply to a taxable person Within 30 days from the receipt of payment No need to issue tax invoices for: zero-rated supplies exempt supplies deemed supplies

54 5. Price Display, Invoicing and Record-keeping 54 Issuing tax invoice in foreign currency For tax invoice issued in foreign currency, the following items on the tax invoice must be converted into Singapore dollars: total amount payable excluding GST; total GST amount; and total amount payable including GST The conversion must be based on an approved exchange rate.

55 6 (Customer s Name) TAX INVOICE Gallery Photo Supplier 888 Jalan Ang Teng Singapore GST Reg No: M K (Customer's Address) Date: 1/7/2012 (Customer's Address) 1 Invoice No: F Type of Supply: Cash / Credit Sale 5. Price Display, Invoicing and Record-keeping 3 S/No Description Qty Unit Price Total Discount Total ($) ($) ($) ($) 1 Yashica MG Pentax Z-1 Body 20 1,000 20,000 1,000 19, Total 19, Add 7% 1, Amount Due: 21, Thank you. We look forward to being of service to you again Contents of a tax invoice An identifying number 2. Invoice date 3. Customer s name (or business name) and address 4. Description of goods and services 5. Supplier s name, address and GST registration number 6. The words tax invoice 7. Total amount payable excluding GST, total GST amount shown separately 8. Total amount payable, including GST 9. Breakdown of standard-rated, zero-rated, exempt or other supply if any and the gross amount payable in respect of each supply 10. Convert into SGD if billing is in foreign currency

56 5. Price Display, Invoicing and Record-keeping 56 Issuing simplified tax invoices When to Issue? Amount payable including tax $1,000 Only for standard-rated supplies What must be shown on a simplified tax invoice? Supplier s name, address and GST registration number An identifying number (e.g. invoice number) Invoice date Description of the goods or services Total amount payable including GST The words Price Payable inclusive of GST

57 5. Price Display, Invoicing and Record-keeping 57 Keeping Records Income, purchase and business expense records Tax invoices/simplified tax invoices/receipts issued/received Business contract and agreement Credit notes and debit notes Import and export documents (e.g. import and export permit, bill of lading, air waybill) Payment evidence (e.g. bank statement) Tourist refund claim forms etc.

58 5. Price Display, Invoicing and Record-keeping 58 Other records to support GST declarations Source documents of all other business transactions which affect the output and input tax reported in the GST return Examples include: - Usage of business assets for private purposes - Disposal of business assets - Removal of goods from customs-licensed warehouse

59 5. Price Display, Invoicing and Record-keeping 59 Statements and accounting schedules The following should be maintained for the tracking and summary of records: - General Ledgers/ Debtors and Creditors Ledgers - Purchase Orders and Delivery Notes - Purchase and Sales Books/ Cash Books and other account books - Records of daily takings - Stock records - Bank Statements and Bank-in Slips - Relevant Business Correspondences - GST Accounts - Financial Statements - Statement of accounts such as Balance sheet and Profit and Loss Statements etc.

60 5. Price Display, Invoicing and Record-keeping 60 Sales and purchase listings Recommended format as follows: Sales Listing Invoice date Invoice number Name of customer Description of supply Invoice amount excluding GST ($) GST ($) (if applicable) Destination of goods (if applicable) Purchases Listing Invoice date Invoice number Name of supplier Supplier s GST registration number Description of purchase Invoice amount excluding GST ($) GST ($)

61 5. Price Display, Invoicing and Record-keeping 61 How long do I keep records and accounts? Accounting records pertaining to prescribed accounting period ending: On or after 1 January 2007 to keep for at least 5 years Before 1 January 2007 to keep for at least 7 years

62 BREAK 62

63 6. e-filing GST Returns and Correcting Mistakes 63 Overview of e-filing Completing GST F5 Important Things to Note on e-filing Correcting Mistakes in GST Return Relevant e-tax Guide/ User Guide: How Do I Prepare My GST Returns? GST e-filing User Guide GST: A Guide on Exports

64 6. e-filing GST Returns and Correcting Mistakes 64 Overview of e-filing Step 1 Step 2 Authorise Staff/Third Party to act for your organisation s GST matters online You need your organisation s e- Services Access Code to log in This step is required only if you are e-filing GST return for the first time or if you need to edit an earlier authorisation Retrieve and Complete GST F5 via e-services Authorisation System (EASY) via mytax Portal For detailed instructions, you may download the GST e-filing User Guide at Quick links> e-services> GST.

65 6. e-filing GST Returns and Correcting Mistakes Completing GST F5 65 Box 1: Total value of standard-rated supplies The amount to report in Box 1 is the value of supplies which are subject to GST. This value should exclude the GST amount. Example: If you sell goods for $100 with $7 of GST, you should include $100 in Box 1. What to include What to deduct Supplies of goods made in the course of your business E.g. Inter-company sale of goods (if not under Group/ Divisional Registration), lease of machinery Supplies of services made in the course of your business Sale of business assets Deemed supplies E.g. Gifts > $200 or forms a series of gifts OR Business assets put to non-business use Reduction in the value of standard-rated supplies for which a credit note has been issued or a debit note has been received

66 6. e-filing GST Returns and Correcting Mistakes Box 2: Total value of zero-rated supplies 66 What to include What to deduct Supplies of goods which are exported Supplies of international services as listed in section 21(3) of the GST Act Reduction in the value of zero-rated supplies for which a credit note has been issued or a debit note has been received Box 3: Total value of exempt supplies What to include Sales and leases of residential properties Supplies of financial services under the Fourth Schedule to the GST Act E.g. Interest from local banks, sale of equity, absolute value (i.e. to ignore any negative sign) of net realised exchange gain/loss for each prescribed accounting period Supply of Investment Precious Metals (IPM) (with effect from 1 Oct 2012)

67 6. e-filing GST Returns and Correcting Mistakes 67 Box 3: Total value of exempt supplies (continue) Illustration: For the quarterly return ending Dec 2012 Month Oct Nov Dec Exchange gain/(loss) (150) 100 (200) The net realised foreign exchange loss for the quarter is $250 Interest received from fixed deposit is $400 You need to report $250 + $400 = $650 in Box 3 Box 4: Total value of Box (1) + Box (2) + Box (3) The value in this box will be automatically computed after you have filled in the amounts in Box 1, Box 2 and Box 3.

68 6. e-filing GST Returns and Correcting Mistakes 68 Box 5: Total value of taxable purchases The amount to report in Box 5 is the value of purchases and imports where the GST incurred can be claimed, and zero-rated purchases. This value should exclude the GST amount. Example: If you buy or import goods for $100 with $7 of GST, you should include $100 in Box 5. What to include What to deduct What to exclude Standard-rated purchases Imports Zero-rated purchases from GST-registered suppliers (e.g. purchase of air tickets, international freight charges, international call charges) Business purchases made before your date of GST registration which satisfy pre-registration input tax claim conditions (in first GST F5 only) Reduction in the value of taxable purchases for which a credit note has been received or a debit note has been issued Value of taxable purchases corresponding to repayment of input tax Wages and salaries Expenses where input tax is specifically disallowed

69 6. e-filing GST Returns and Correcting Mistakes 69 Box 6: Output tax due In general, the amount to report in Box 6 is the GST charged on your standardrated supplies. Example: If you sell goods for $100 with $7 of GST, you should include the $7 of GST in Box 6. What to include GST charged on the items included in Box 1 GST on debts that are recovered after you have claimed for your bad debt relief Claim of a refund made to a tourist if it was previously allowed to you and you are no longer entitled to it What to deduct Reduction in GST to be accounted for where a credit note has been issued or a debit note received

70 6. e-filing GST Returns and Correcting Mistakes 70 Box 7: Input tax and refunds claimed In general, the amount to report in Box 7 is the GST incurred on your business purchases, and other GST refunds to claim. Example: If you buy or import goods for $100 with $7 of GST, you should include $7 in Box 7. What to include What to deduct GST incurred on the standard-rated purchases included in Box 5 GST incurred on imports included in Box 5 Tourist refunds made to your customers (Applicable to businesses that operate the Tourist Refund Scheme only) Bad debt relief claim in which all the bad debt relief claim conditions can be satisfied Input tax claim for business purchases made before your date of GST registration which satisfy pre-registration input tax claim conditions (in first GST F5 only) Reduction in GST to be claimed where a credit note has been received or a debit note issued Repayment of input tax claimed from IRAS but not paid to your supplier

71 6. e-filing GST Returns and Correcting Mistakes 71 Box 8: Net GST to be paid to/claimed from IRAS The value in this box will be automatically computed after you have filled in the amounts in Box 6 and Box 7. Box 9: Total value of goods imported under this scheme This box is only applicable to businesses under the: Major Exporter Scheme; or Approved Third Party Logistics Company Scheme; or Other Approved Schemes Box 10: Did you claim for GST you had refunded to tourists? If you have claimed any GST refunds made to tourist under the Tourist Refund Scheme in Box 7 (Input tax and refunds claimed), please indicate Yes and state the amount claimed in this box. Box 11: Did you make any bad debt relief claims? If you have made bad debt relief claims in Box 7 (Input tax and refunds claimed), please indicate Yes and state the amount that you have claimed in this box.

72 6. e-filing GST Returns and Correcting Mistakes 72 Box 12: Did you make any pre-registration claims? This box is applicable to your first GST return only and will not be available in your subsequent GST returns. If you have made pre-registration input tax claims in Box 7 (Input tax and refunds claimed), please indicate Yes and state the amount that you have claimed in this box. Box 13: Revenue In general, revenue refers to income derived from your main income sources such as from the provision of services, sale of goods and any other operating income (i.e. gross sales/ gross income/ turnover). This value should be extracted from the revenue items (e.g. sales) in your profit & loss accounts, whether they have been audited or not. As this value is based on your accounting treatment, it may be different from the amount declared in Box 4 which is your total supplies based on GST requirements.

73 6. e-filing GST Returns and Correcting Mistakes 73 Important Things to Note on e-filing Due Dates for Submission of GST Return and GST Payment Filing and payment due date is 1 month after the end of each prescribed accounting period (E.g. due date for GST F5 return covering 1 Jan Mar 12 is 30 Apr 12) Penalties will be imposed for late submission of return and payment of tax Payment can be made via GIRO (deduction will be made on the 15 th day of the following month after the filing due date), cheque or AXS. For details, refer to > Quick links > Payments > GST If net GST amount to be paid or claim is < $5, no payment or refund will be made

74 6. e-filing GST Returns and Correcting Mistakes 74 Important Things to Note on e-filing Things to look out for when completing the GST Return To drop off cents for Boxes 1 to 5 & 9 Declare figures in S$, not in foreign currencies All boxes must be completed If no business is done, a Nil return is still required

75 APPLICATION EXERCISE 75 ABC company has the following business transactions for one accounting period: Transaction Value Fill in Box 1) Imports $20,000 2) Local sale $50,000 3) Local sale of fixed asset $5, ) Local purchase $8, ) Export sales* $50, *Please note that export sales qualify for zero-rating only if all the relevant export documents can be maintained within 60 days from the time of supply. You can refer to the e-tax Guide GST: A Guide on Exports for the relevant documents to be maintained

76 APPLICATION EXERCISE 76 ABC company has the following business transactions for one accounting period: Transaction Value Fill in Box 1) Imports $20,000 2) Local sale $50,000 3) Local sale of fixed asset $5, ) Local purchase $8, ) Export sales* $50, Box 1: Total standard-rated supplies = (2) + (3) = $50,000 + $5, = $55, Box 2: Total zero-rated supplies = $50,070.80

77 APPLICATION EXERCISE 77 ABC company has the following business transactions for one accounting period: Transaction Value Fill in Box 1) Imports $20,000 2) Local sale $50,000 3) Local sale of fixed asset $5, ) Local purchase $8, ) Export sales* $50, Box 5: Total value of taxable purchases = (1) + (4) = $20,000 + $8, = $28,100.40

78 APPLICATION EXERCISE 78 What figures to fill for Box 6 (output tax) and Box 7 (input tax)? Transaction Value Fill in Box GST Value 1) Imports $20,000 5 $1,400 2) Local sale $50,000 1 $3,500 3) Local sale of fixed asset $5, $ ) Local purchase $8, $ ) Export sales $50, $0 Box 6 or 7? NA Box 6: Output Tax Due = (2) + (3) = $3,500 + $ = $3,885.04

79 APPLICATION EXERCISE 79 What figures to fill for Box 6 (output tax) and Box 7 (input tax)? Transaction Value Fill in Box GST Value 1) Imports $20,000 5 $1,400 2) Local sale $50,000 1 $3,500 3) Local sale of fixed asset $5, $ ) Local purchase $8, $ ) Export sales $50, $0 Box 6 or 7? NA Box 7: Input Tax and Refunds Claimed = (1) + (4) = $1,400 + $ = $1,967.03

80 APPLICATION EXERCISE 80 55,500 50, ,570 28,100 3, , ,918.01

81 6. e-filing GST Returns and Correcting Mistakes 81 Correcting Mistakes in GST Return Mistakes made in your GST F5/F7/F8 return submitted can be corrected by filing a GST F7 Disclosure of errors on GST return To fill in the total revised figures inclusive of error adjustments (i.e. treat the GST F7 as a new GST return for the accounting period) GST F7 filed will supersede the F5/F7/F8 that was submitted previously for the same accounting period

82 6. e-filing GST Returns and Correcting Mistakes 82 Correcting Mistakes in GST Return GST F7 can be requested and submitted electronically via mytax Portal. For detailed instructions on requesting for GST F7, you may refer to the GST e-filing User Guide. GST > For GST-registered businesses > Complete & File GST return > Correct errors made in GST return (request for GST F7). As a concession, you may correct the errors in your next GST F5 return, subject to certain conditions as shown in the following flowchart.

83 6. e-filing GST Returns and Correcting Mistakes 83 ERRORS Do the errors involve GST? YES NO NO Is the sum of non- GST errors** for each prescribed accounting period > 5% of total supplies? NO Include the errors in the next GST F5/F8 return Is the net GST error* for all affected accounting period(s) > $1,500? YES File F7 YES *GST error refers to a mistake made to the value declared in Box 6 and/or Box 7 of your submitted GST return. **Non-GST errors refer to all other mistakes made that are not GST errors.

84 APPLICATION EXERCISE 84 Scenario Errors Net GST error Adjustments 1. Errors involve GST amount only (value of supplies and purchases are correct) Qtr 1: Under-declared output GST by $300 Qtr 1: Under-declared input GST by $200 +$300 - $200 = +$100 Net GST error < $1,500; Non-GST error < 5% of total supplies. Correct mistake in next GST F5/F8 return. 1. Increase Box 6 by $300 & 2. Increase Box 7 by $200 in next GST F5/F8 return. 2. Errors do not involve GST amount (GST values are correct) Qtr 1: Standard-rated supplies over-declared by $200 Qtr 1: Zero-rated supplies under-declared by $10,000 $200 + $10,000 + $500 = $10,700 $10,700 / $105,570 * 100 = 10.1% Non-GST errors > 5% of total supplies. Need to file GST F7. You will need to revise all the figures (as if you are filing for the 1 st time) in the GST F7 for Qtr1. Qtr 1: Taxable purchases under-declared by $500

85 7. Penalties and Recovery Actions 85 Late Registration Non/Late Submission of GST Return Non/Late Payment of Tax Submission of Incorrect GST Return Failure to Keep Proper Records Relevant e-tax Guides: Do I Need to Register? How Do I Prepare My GST Return Basic Record Keeping Guide for GST-registered Businesses Keeping of Records in Imaging Systems Keeping Machine-sensible Records and Electronic Invoicing

86 7. Penalties and Recovery Actions 86 Late Registration If a business fails to apply for GST registration within 30 days of the date its registration liability arises, the Comptroller has the power to: Back-date the GST-registration - Business must account for GST on standard-rated supplies made from their effective date of GST registration. This is regardless of whether GST can be recovered from its customers Impose penalties - 5% late payment penalty will be imposed on the tax that should have been paid earlier On conviction, the following shall be imposed: - 10% penalty on tax due; and - Fine not exceeding $10,000

87 7. Penalties and Recovery Actions 87 Non/Late Submission of GST Return If a business fails to submit GST return by the due date, the Comptroller can: Impose late submission penalty - $200 late submission penalty for every completed month that GST F5/F8 remains outstanding (not exceeding $10,000 in penalty for each GST F5/F8) Raise estimated tax assessment and impose late payment penalty (LPP) - Tax unpaid 60 days after the imposition of 5% LPP may be subject to an additional 2% penalty for each completed month (not exceeding 50% of tax outstanding)

88 7. Penalties and Recovery Actions 88 Non/Late Submission of GST Return Raise estimated tax assessment and impose late payment penalty (LPP) - The estimated tax assessment and LPP will be adjusted upon receipt and finalisation of GST F5/F8. On conviction, the following will be imposed: - Person responsible for the submission liable to a fine not exceeding $5,000 for each offence, and - Imprisonment not exceeding 6 months for non-payment

89 7. Penalties and Recovery Actions 89 Non/Late Payment of Tax If a business fails to make GST payment by due date, the Comptroller can: Impose late payment penalty and issue a demand note - 5% penalty on tax payable; and - Tax unpaid 60 days after the imposition of 5% LPP may be subject to an additional 2% penalty for each completed month (not exceeding 50% of tax outstanding) Appoint agent (e.g. banks, tenants) for payment of tax Stop individual from leaving the country Take legal action

90 7. Penalties and Recovery Actions 90 Submission of Incorrect GST Return If a business submits an incorrect GST return, the Comptroller can: Raise additional tax assessment - IRAS conducts random audits on GST-registered businesses - Additional tax assessment will be raised to recover the taxes under-accounted/over-claimed On conviction, the following shall be imposed: - Penalty up to 2 times the amount of tax underaccounted/over-claimed; and - Fine up to $5,000 and/or imprisonment up to 3 years

91 7. Penalties and Recovery Actions 91 Failure to Keep Proper Records On conviction of failure to keep proper records, the following shall be imposed: - Fine not exceeding $5,000; and/or - Imprisonment not exceeding 6 months Repeated offence: Business will face fine not exceeding $10,000 and/or imprisonment not exceeding 3 years

92 APPLICATION EXERCISE 92 Scenario Late submission? Penalty? Late payment? Penalty? a) F5 for 01 Oct Dec 12 e-filed on 20 Jan 13. Sufficient funds were maintained for a successful GIRO deduction on 15 Feb 13. No NA No NA

93 APPLICATION EXERCISE 93 Scenarios Late Submission? Penalty? Late Payment? Penalty? b) F5 for 01 Oct Dec 12 e-filed on 28 Jan 13 with net tax payable of $1,000 which was paid to IRAS on 01 Apr 13. c) F5 for 01 Oct Dec 12 e-filed on 15 Mar 13 with net tax payable of $1,000 which was paid to IRAS on 15 Mar 13. No NA Yes Yes $200 Yes 5% x $1, % x $1, % x $1,000 5% x $1,000 Previous penalty on assessment raised would be adjusted accordingly

94 8. Tips on Compliance 94 How to Avoid Late Submission Penalty How to Avoid Late Payment Penalty How to Ensure Accurate GST Reporting The Four Building Blocks GST Assisted Self-help Kit (ASK) Relevant e-tax Guides: GST: General Guide for Businesses How Do I Prepare My GST Return Basic Record Keeping Guide for GST-registered Businesses Keeping of Records in Imaging Systems Keeping Machine-sensible Records and Electronic Invoicing IRAS Voluntary Disclosure Programme

95 8. Tips on Compliance 95 How to Avoid Late Submission Penalty Ensure necessary resources are available for prompt filing of GST F5/F8 returns Ensure the person authorised for e-filing is able to log-in to mytax Portal much earlier than the due date of filing Ensure that the Acknowledgement Page is generated after each submission of GST F5/F7/F8 return online

96 8. Tips on Compliance 96 How to Avoid Late Payment Penalty For payment through GIRO, ensure you have sufficient funds in your GIRO bank account by the 15 th of the month when payment is to be deducted Follow payment instructions on the Acknowledgement page generated with each successful submission of GST return Submit your GST returns and pay the tax declared by the due date. If you have not submitted the GST F5/F8 return, pay the tax assessed and submit the return immediately so that tax assessed can be adjusted

97 8. Tips on Compliance 97 How to Ensure Accurate GST Reporting The 4 Building Blocks 1. People Authorised staff doing the GST reporting Management Know the e-filing and GST payment procedures Have adequate GST knowledge Ensure that GST treatment is correctly applied to transactions and clarify when unsure of GST treatment Keep abreast of GST developments by visiting IRAS website and attending relevant courses Directors/Shareholders to take interest in accuracy of GST reporting Engage qualified people for GST reporting or provide adequate training to staff Ensure proper handover during staff turnover (e.g. authorise the new staff at EASY to e-file GST returns)

98 8. Tips on Compliance Systems Use of suitable computerised accounting system/ software Coded table to classify your sales (type of supply) and purchases (whether claimable) when they are recorded In-built logic to detect duplicate records, discrepancies in GST rate and GST value, etc Function to generate a GST report to assist you in completing your GST returns Function to generate sales and purchases listings in the format of an IRAS Audit File (IAF) and/or softcopy sales and purchases listings in Microsoft Excel file format For a list of accounting software that can produce IAF, please refer to > Businesses > IRAS Accounting Software Register.

99 8. Tips on Compliance Record-keeping To comply with the record-keeping requirements stated under Section 5. Good record-keeping practices Set up a good filing system Keep clear records with cross-references (e.g. credit notes issued should make reference to the original tax invoice) Ensure all transactions are captured accurately and in a timely manner in your accounting system Keep all IRAS correspondences (e.g. Approval for GST registrations and schemes, updates on GST changes, GST clarifications sought from IRAS etc.)

100 8. Tips on Compliance Internal Controls Good internal control Claiming input tax only upon receipt of tax invoice to avoid double claiming Ability to track all creation, amendment and approval of transactions GST return to undergo second level of review before submission Regular reviews to assess the accuracy of submitted GST returns

101 8. Tips on Compliance 101 GST Assisted Self-help Kit (ASK) ASK is a self-assessment package designed to help you enhance your GST compliance You can learn more about ASK at > For GST-registered Businesses > GST Initiatives to Facilitate Voluntary Compliance > GST Assisted Self-help Kit (ASK) GOOD GST COMPLIANCE GST Practices Pre- Filing Checklist ASK Annual Review SECTION 1 SECTION 2 SECTION 3 GST Practices list down the essential requirements and good practices that you can include in the internal processes of your business. Pre-Filing Checklist is a set of questions and answers for you to go through before you file your GST return, so that you can avoid errors. ASK Annual Review guides you to do a selfreview of your GST returns filed in the past financial year(s).

102 8. Tips on Compliance 102 Voluntary disclosure of errors attracts lower penalties! For a start, you can go through Avoid Costly GST Errors enclosed in this seminar package and the GST Assisted Self-help Kit For more information, refer to > About IRAS > Taxpayer Compliance > IRAS Voluntary Disclosure Program

103 9. Notifying of Changes to Business and Cancelling GST Registration 103 Notifying Changes to Business Cancelling GST Registration Relevant e-tax Guide: Do I Need to Register? GST: General Guide for Businesses Transfer of Business as a Going Concern

104 9. Notifying of Changes to Business and Cancelling GST Registration 104 Notifying Changes to Business Changes to Business Change in business details (E.g. business name, address or GST GIRO bank account number) Cessation of business Action Required Write in (post/fax/ ) with supporting documents (e.g. ACRA Business Profile) to inform IRAS within 30 days of change. GST registration will not be automatically cancelled upon cessation of business To apply for cancellation of GST registration within 30 days of business cessation by submitting form GST F9 (Application for Cancellation of GST)

105 9. Notifying of Changes to Business and Cancelling GST Registration 105 Changes to Business Change in business constitution or ownership Transfer of business from one person to another (E.g. convert from soleproprietorship to private limited company) Transferor: previous business constitution/owner Transferee: new business constitution/owner Transferor Action Required To apply for cancellation of GST registration within 30 days of the date of transfer by submitting GST F9 if transferor ceases to make taxable supplies after the transfer. Transferee Assess if business is liable to be GSTregistered Submit GST F1 (Application for GST Registration) and Documentation Checklist within 30 days of the date of transfer should taxable turnover exceed S$1 million

106 9. Notifying of Changes to Business and Cancelling GST Registration 106 Cancelling GST Registration Other than cessation of business, you may cancel your GST registration if your business turnover is below the compulsory registration threshold To notify the Comptroller by submitting GST F9 (Application for cancellation of GST) Once application is approved, you will be notified of the effective date of de-registration and will be required to submit a GST F8 (Final GST return) To account for output tax if value of assets on hand including stock, fixed assets and non-residential properties (for which input tax has been allowed previously) exceeds $10,000

107 10. Where To Get Help IRAS website ( - enquiries ( > Contact Info > Us) - Fax enquiries ( ) - Letter enquiries (The Comptroller of Goods and Services Tax Inland Revenue Authority of Singapore 55 Newton Road Revenue House Singapore ) - GST helpline ( ) - Counter service at Revenue House (Monday to Friday only: From 8am to 5pm)

108 10. Where To Get Help 108 Ask IRAS e-tax Guides > GST

109 GST E-SERVICES 24 Hours, 7 days a week 1. View Return Status Check the status (e.g. if GST return is successfully submitted to IRAS) of GST F5, F7 and F8 2. Update contact details and subscribe to Alert View or update your contact information online, such as your GST mailing address and to subscribe to GST alerts. 3. View Correspondence/ Notices Retrieval of Acknowledgement page View Account Summary/ Payments View tax account details; Request statement of accounts; View payment plan schedules; Make payment via internet banking; Request payment voucher to make payment via other payment modes 5. Apply for GST Registration/ Cancellation of GST Registration 6. Apply for Declaration of Agents Maintain list of authorised declaring agents for businesses approved under Major Exporter Scheme (MES)/Third Party Logistics Company Scheme (3PL) Log onto mytax for all these and more...

110 isprint (Packaged Solutions) 110 With effect from 1 Apr 2012, all businesses (GST-registered and non- GST-registered) can apply to IDA for a grant under IDA s isprint (Packaged Solutions) scheme to defray the costs of purchasing accounting software that are listed on IRAS Accounting Software Register. Businesses can claim up to 50% of the qualifying costs for the purchase of the first packaged solution (listed) under each solution category. For more details on the list of packaged solutions, please refer to IDA website. Please note that businesses must obtain IDA's grant approval before purchase can be made.

111 isprint (Packaged Solutions) 111 Who is eligible? How Do I Qualify? You are a local SME with minimum 30% local shareholding and You do not already own/ use any other solutions that you are going to adopt (i.e. accounting, payroll or POS solution) and Company's Group annual sales turnover not more than S$100 million or Company's Group employment size not more than 200 workers. For more details on the scheme, please visit IDA at

112 112 GST Course by Tax Academy of Singapore Course Title : Executive Tax Programme Level I (GST) Duration : 3.5 days Course fee : Refer to website (*IRAS is offering up to 50% subsidy on all Executive Tax Programmes. ) For more details, visit: or contact Ms Toh Hui Bin Eunice at , [email protected]

113 113 GST Workshop by Tax Academy of Singapore Workshop Title : FasTax Series Getting GST Right Duration : 1 day Workshop fee : Refer to website For more details, visit: or contact Ms Jocelyn Chong at Ms Amuna Manyuni at Or to: [email protected]

114 Answers to Application Exercises 114 Slide 21: 7%, exempt, 0% Slide 22: N (out-of-scope), Y (0%), Y (7%) Slide 23: N (exempt), Y (7% commercial; Exempt residential), N (out-of-scope) Slide 44: 1) No 2) No 3) Yes (For business purposes only) Slide 47: (i) Yes, (ii) No, (iii) No, (iv) No Slide 48: (v) No, (vi) Yes, (Vii) No Slide 52: Yes, Yes, No, No, No, No Slide 75: 1) 5, 2) 1, 3) 1, 4) 5, 5) 2 Slide 78: 1) 7, 2) 6, 3) 6, 4) 7, 5) NA Slide 92: No, NA, No, NA Slide 93: No, NA, Yes Yes, $200, Yes

115 Why GIRO? Join GIRO Now! 115 Convenient - GIRO is an electronic cashless mode of payment & removes the hassle of writing cheques. No more late payment - You will not miss the payment due dates. Enjoy interest-free instalments - 1.For income tax ECI payments, companies can enjoy up to 10 monthly interest-free instalments. 2.For property tax, companies can enjoy up to 12 monthly interest-free instalments, or opt for a one-time GIRO deduction.

116 Why GIRO? Join GIRO Now! 116 Enhance cash flow - Funds stay in your account longer 1. For Goods & Services Tax, GIRO deduction is on 15th of the month, 15 days after the filing due date via a one-time deduction. 2. For Section 45 withholding tax, GIRO deduction is on 25th of the month, 10 days after the filing due date via a one-time deduction. Faster tax refund - You can receive tax refund faster as it will be credited directly to your bank account. You do not have to wait for a cheque to be posted to you. Full control over GIRO with IRAS e-services - You can view your GIRO plan and tax account balance simply by logging into mytaxportal.

117 Join GIRO Now! 117 How to sign up for GIRO? Simply complete one form and sign up to pay by GIRO for all your taxes. The form is available on IRAS website: Links>Forms>GIRO Application Forms

118 Master GIRO Application Form 118 Select the tax types you wish to apply for GIRO and the type of payment plan.

119 119 Company s Income Tax Obligations

120 120 Company s Income Tax Obligations Seminars & Events).

121 Q & A 121