The procedure of submitting corporate taxes can frequently be laborious and challenging. Corporate service providers, however, can free up firms from the annual compliance work so they can instead devote their attention to expanding their organization.

All companies in Singapore are required by law and have a financial obligation to file corporate taxes. Singapore has a flat corporation tax rate of 17%, which is further lowered by a number of grants and incentives from the government.

For companies in Singapore to file corporate tax returns on time and take advantage of any applicable tax incentives, proper documentation is crucial. The corporation tax filing deadline is November 30, for 2021.

For companies that have limited resources or time, compiling tax-related documents can be a time-consuming task or a huge burden.

By outsourcing corporate tax preparation, busy executives can fulfil compliance needs while maintaining their attention on expanding the company. Here are some ways that tax outsourcing might benefit Singaporean companies:

Simplifies the gathering of data

For internal accounting and finance executives, the end of a fiscal year is typically peak season. These executives typically have to consolidate all financial data for the year, create budgets for the following year, and file company tax paperwork by the required tax deadlines.

It may not be reasonable or practical for these ministries to gather all the information required to cover all bases and permit the greatest possible Singapore tax savings during this busy season. Before the books are closed, they might just be able to gather the necessities.

When companies in Singapore contract with an outside accounting firm to prepare their taxes, the firm handles the labour-intensive data collection, organization, and sorting throughout the fiscal year. This frees up internal finance departments to locate the information required for filing paperwork.

Guarantees compliance to tax laws

Singapore’s tax rules are continuously changing to reflect industry trends and governmental goals as a rising business-friendly regime. Eight tax adjustments that apply to Singaporean firms were announced in the Singapore Budget just this year, excluding sector-specific tax adjustments.

In-house accounting and finance professionals may find it difficult to keep up with the latest developments in Singapore tax law because they also have other financial responsibilities and commitments to their parent company.

Outsourced accounting firms can be depended on for up-to-date knowledge regarding corporate tax adjustments that effect businesses because of their unique specialization in accounting and tax services. Large outsourced accounting companies will have knowledge of how new tax directives affect clients from various industries and will be able to advise clients on the appropriate course of action.

In-house financiers are now free to concentrate on building plans using the in-depth knowledge that the outsourced accounting firms have offered without having to worry about non-compliance or missing out on tax-saving opportunities.

Protect sensitive tax information

To properly file company tax returns, financial data security is crucial. Sensitive corporate information must be both accessible and secure at all times, which may be a difficult balance for organizations in Singapore to strike.

Accountants may need to access data while on the go to meet deadlines during peak season. However, this data is susceptible to hackers, breaches, and theft due to personal devices and open networks (such free Wi-Fi connections).

To guarantee that client data is secure, outsourced accounting companies typically invest in enterprise-level data security and protection technologies. These databases typically contain huge volumes of tax and financial data. They will also have to keep their clients informed on the most recent data privacy and security issues in order to retain these enterprise-level protections.

Businesses in Singapore can govern their sensitive financial data in a safer environment by using an outsourced provider, which also reduces the chance that the data will be hacked or exposed to security risks when used with unidentified devices or networks.

Maintain data accuracy

An important component of filing corporation taxes is paying attention to detail. In addition to checking that all numbers are accurate, accountants who are preparing paperwork must have a thorough understanding of tax regulations in order to deal with any issues that may arise throughout the course of the fiscal year.

Many Singaporean organizations may not be able to achieve or be practical with such thoroughness because they may have in-house accountants combining bookkeeping with other administrative and financial tasks.

Offering specialized filing services for their clients allows external accounting firms and corporate service providers to help minimize errors and omissions. By outsourcing to a company that manages many clients’ filing deadlines, it is also ensured that documents are submitted on time, assisting Singaporean companies to stay out of trouble and avoid fines.

Helps businesses concentrate on their primary services

In a market as competitive as Singapore, where industry players aspire to not only perform locally but also expand regionally, value creation is essential to any company’s success. Filing corporate taxes can be a time-consuming process that consumes time that could be spent on activities and services of higher value.

This is especially important for small businesses and companies that are less than five years old because they need to build their enterprises and create high-value products in order to survive and grow.

The process of locating the appropriate paperwork can be sped up by outsourcing corporate tax filing to an outside accounting company, which in turn reduces the turnaround time for submission. By allowing account and finance executives to concentrate on tasks like client care, value creation, marketing, and business growth, outsourcing corporate tax filing also boosts productivity and profitability.

Reduced costs

Through the following methods, outsourcing annual compliance can save ongoing business administration costs:

• It can take time and money to find and train new staff, and knowledge and skills occasionally disappear with the departing employees as well.

• New business management technologies, such as accounting and compliance software, can be expensive and need extensive training.

• Managing enterprise data insecurely can also put data privacy at risk and result in costly fines.