It’s Time To Do Some Tax Planning Now!
The Calendar year end is coming close – 31/12/2017.
You, as Business Owner, should be doing some calculation of how your financial year is going to close with how much estimated profits to be earned, assuming your company’s financial year is not the same as the Calendar year end.
Follow this simple Tax Planning rule if you do not know how to plan :-
Compute the amount of Corporate Income Tax your company is going to pay, making sure you maximize the Start-up Tax Benefits, if applicable.
Now, beyond the Profits available for Startup Tax Benefits, if you may move some of these incremental profits into your pocket in the form of Year End Bonus, make sure you compute the maximum Employee CPF base on Cap you are going to contribute which can be Deductible against your Total Personal Income for this Calendar year.
Alternatively, if you do not want to have any CPF contribution for this year end’s last chance to move excess profits into your pocket, you can declare Director’s fees to be paid to yourself.
At the end of this exercise, compare the Corporate Income Tax and your Personal Income Tax amount with or without the Bonus not Director Fee options, then you will know exactly which option to choose.
Hope this simple rule helps.
Good luck!
If you need help, feel free to contact us at :
(O) +65 63851011
(M) +65 90880669
