Goods and Service Tax, commonly abbreviated as GST, is defined as a consumption tax imposed on the sale of most goods and services. It also includes taxes imposed on all imports into Singapore.
The main objective of implementing GST is to lower the corporate income and personal tax rates, along with shifting the reliance from the normal direct taxes to indirect taxes. This tax implementation would be lucrative for attracting many international investors while at the same time maintaining a sustainable economic growth that would create more job opportunities.
GST was introduced first on April 1st 1994 at a rate of 3%. In 2003, the rate was increased to 4% and it was even further increased to 5% in 2005. Moreover, it currently stands at a rate of 7 percent.
However, there are some special cases where the above rate does not apply, and GST remains at 0%. For example:
• Export of goods
• Supplier shipping products to a foreign address
• Services categorized under International Services
• Airplane tickets
• And local estate agent(s) selling house(s) in Australia
How do GST works?
GST is a tax that the end-consumer of a product/service meets and does not add on to the cost(s) of the company. In this case, the company in question just acts as an intermediary between the government and the consumer and its duty is to collect the said tax. In addition, GST has been designed to include output tax and input tax. Ideally, output tax is the tax collected by the seller on the sale of goods or services and input tax refers to that tax acquired on expenses and business purchases, which include import of goods. In this regard, this article presents a clear relationship between the above taxes and the following are eminent:
1. Retailer
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...able for people to register their companies voluntarily since they can claim input tax incurred. However, the following conditions must be met if a company has to claim any input tax:
• It should be GST-registered
• Goods/services must be supplied or imported by you (the company in question)
• Input taxes are directly related to out-of –scope supplies or taxable supplies
• Goods/services must be used exclusively for business purposes
• Claims are not from any of the expenses stated under GST-Regulation 26 and 27
However, the benefit that one receives for being GST-registered outweighs its costs. For instance, most companies have realized a tremendous increase in administrative costs of keeping records. Therefore, directors of such companies should come up with a cost-benefit trade off. For more information, one can visit http://www.iras.gov.sg/irashome/default.aspx.
Five issues will be told in this report. The first issue identifies which types of capital expenditure projects will be selected to achieve GSCЎ¦s objective, and the performance result. Second, to obtain a computer system, GSC can be either financed by bank loan or leased from Computer Company. Third, use the probability technique to calculate the budgeted admission price for the first year. The forth issue, concerns with how GSC can breakeven without support from the government. The last issue considers overall elements to set up a price policy for the gift shop. We attempt to figure out these issues as existing puzzle.
Parliamentary taxes on the colonial peoples started with the Navigation Acts in 1660, but they were not an issue to the colonial people because they were too difficult to enforce. Then in 1764 the Stamp Act was passed, this was the first direct tax on the colonists. The Navigations Acts and the Sugar Acts of 1764, which was a tax placed on imported molasses and sugar, had not directly affected colonists, it affected the merchants. The merchants in hand would just raise prices. The stamp act was completely different. It said that any document or printed item would need to have a stamp placed on it purchased from the British government. The Stamp Act upset the colonist...
The first time a Parliamentary imposed tax threatened the livelihood of the colonies was in 1733 with the Molasses Act, stemmed from the loss of profit for the British West Indies under the Navigation Act. However, this act was avoidable and rarely paid. Following the long and harrowing French and Indian War, Britain was deep in debt and George Grenville was appointed British Chancellor of the Exchequer. He was determined to pay off the debt by taxing the colonies. He not only reinforced the ignored Navigation Acts, but he placed the new Sugar Act which was similar to the Molasses Act which put a tax on rum and molasses imported from West Indies, but this Act would be enforced. Needless to say, the colonists were not used to this intrusion of Parliament and felt that it was wrong because there were no members in Parliament to represent the colonies. They felt it was a direct violation of their civil liberties and resentment was beginning to spawn. Next was the Currency Act which disregarded the colonies paper money, forcing the colonist to pay in only silver and sending their economy into chaos. A year later, Grenville imposed the Quartering Act which forced the colonists to house and accommodate the British military stationed in their area. It was a slap in the face to have to pay for those who stood for everything the colonists despised. Perhaps the most important and controversial acts were the Stamps Acts that placed a tax on legal documents, almanacs, newspaper, pamphlets, playing cards and dice.
the example of taxation which is the first of its kind on this particular product. The author is
In realising that foreign investments are the key source of the nation’s economic rise, the Chinese government has given special preferences to foreign investors (Financial Express, 2006). This is mostly done through reduction of most favoured nation (MFN) tariff rate. In India, on the other hand, fair competition exists between domestic and foreign investors. Although the Indian government states that it aims to reduce its MFN tariff rate, which currently doubles the rate in China, to other ASEAN country levels, it is in reality a big challenge because a large portion of the nation’s tax revenue comes from customs tariffs (Henley, 2004).
The purpose of this paper is to illustrate the layout of taxation. I will differentiate the types of taxes and the roles that they serve currently. Subsequently, I will explain what equity, efficiency, effectiveness and transparency (EEET) are and show how they apply to taxation as a whole. Lastly, I will conclude how the EEET applies to the four tax types.
Introduction India is the world’s second most populated country with over 1.2 billion people. Since its independence from British rule in 1947, the country has been more or less a stable democracy. Until 1991, Indian governments imposed economic austerity and its markets were comparatively closed to the world. Economic reforms in 1991 brought about a change which made India an attractive and huge market for multinational corporations from all over the world (Joshi 8). Retail industry within a globalized world is one of the most thriving and profitable sectors.
Comparative advantage means that an industry, firm, country or individual are able to produce goods and services at a lower opportunity cost than others which are also producing the same goods and services. Also, in order to be profitable, the number in exports must be higher than the number in import. From the diagram we seen above, Singapore is seen to have a comparative advantage in some services. The services are Transport, Financial, business management, maintenance & Repair and Advertising & Market Research, etc. These export services to other countries improve the balance of payment. On the other side, Singapore is seen to have a comparative disadvantage in some services. The services are Travel, Telecommunications, Computer & Information,
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
In this essay we look in-depth on how government strategies and economic policy play a crucial role in the success of High Performance Asian Economies (HPAEs) during 1960 to 1990 (World Bank 1993).There are eight countries within HPAEs: South Korea, Taiwan, Hong Kong, Singapore, Thailand, Malaysia, Indonesia and Japan. Its economic development has significantly rise that it was name ‘East Asia Miracle’ (World Bank, 1993).
Finally I will state whether or not I agree with the given statement.cobd bdr sebdbdw orbd bdk inbd fobd bd. When a company receives a certificate of incorporation it has a 'separate legal personality'. In law the company becomes a legal person it its own right. The fundamental concept to become familiar with when starting up a business is the idea that the business has a legal personality in its own right, particularly when it assumes the form of a limited liability company. This essentially means that if one commences business as a limited liability company, then the corporation... ...
The Canons of Taxation is associated with the tax rate, method and its collection. A better way to define canons of taxation is the properties or features possessed by a good tax. These features are recognized as canons of taxation only if applied to a solitary tax. The mixture of different taxes with different canons included is deemed a good tax system. Hence, canons of taxation are used by the governments to collect and impose taxes. The process of taxation increases government income but there is also a downside to it. The government’s investment might be affected in a negative way. A balanced strategy should be developed by the government before the socioeconomic activities in the country are badly affected by the aftereffects of taxation.
Double Taxation refers to the phenomenon of taxing the same income twice. This occurs when the same item related to an individual’s income is treated as being accrued, arising or received in more than one country. The article studies Double Taxation Relief according to Section 90 of the Income Tax Act.
...onclusion, registering a business is no easy task. To create a business involves a lot of time, effort and devotion towards building a company that might even take years to become profitable. With the right business idea, plan and financing one can lay the groundwork for a successful business.
Taxation is one of the most important courses that the students have to study at Accounting Specialization. It covers various topics that required by the governments to the nation. Besides, it produces an approach to the taxation of individuals, including a more in-depth study of the imposition of several business entities builds solid professional knowledge. As a student, I think this course will support me to gain a thorough understanding of taxation and a talent that many employers are exploring in accountants. This reflection covered the points I learned about individual and business tax in this class, the challenge that I faced, and the experience I got it from working in a group and being a leader of them.