Financial statements

What are Financial Statements?

Financial statements are documents that provide information about the financial position, performance, and cash flows of a company. These statements are prepared at the end of an accounting period (usually annually or quarterly) and provide insights into a company's financial health and operating efficiency.

The most common types of financial statements are the income statement, balance sheet, and cash flow statement. The income statement shows the revenue and expenses of a company over a period of time, usually a year. The balance sheet shows the assets, liabilities, and equity of a company at a specific point in time, usually at the end of the year. The cash flow statement shows the inflows and outflows of cash and cash equivalents for a specific period of time.


Performance Evaluation

Financial statements provide a snapshot of a company's financial performance. This allows stakeholders such as investors, shareholders, and management to assess how well the business is performing. They reveal key financial metrics such as revenue, expenses, profits, and losses. This helps in evaluating the company's profitability and efficiency.


Decision Making

Financial statements play a crucial role in decision-making for various stakeholders. Investors use them to assess the financial health of a company before making investment decisions. Lenders and creditors rely on them to evaluate the creditworthiness of a company before extending loans or credit. Management uses them to make informed decisions regarding resource allocation, budgeting, and strategic planning.


Transparency and Accountability

Financial statements provide transparency by disclosing the financial information of a company to its stakeholders. They present a comprehensive view of a company's financial position, including assets, liabilities, and equity. This transparency fosters trust and accountability between the company and its stakeholders, as it enables them to monitor the company's financial activities and ensure compliance with applicable laws and regulations.


External Reporting

Financial statements serve as a means of external reporting. This allows companies to communicate their financial performance to external parties such as regulatory bodies, tax authorities, and potential investors. They are typically required by law and accounting standards. This is to ensure that companies provide accurate and reliable information to the public.


Comparison and Benchmarking

Financial statements enable stakeholders to compare the performance of a company over time and against industry benchmarks. By analyzing trends and ratios derived from these statements, stakeholders can assess a company's financial stability, growth potential, and competitiveness. This information is valuable for making informed investment decisions and identifying areas of improvement.


Forecasting and Planning

Financial statements provide historical data that can be used as a basis for forecasting future performance. By analyzing past data and trends, companies can make financial projections and develop strategic plans. These projections help in setting realistic goals, estimating financial needs, and identifying potential risks and opportunities.


In summary, they are essential for evaluating performance, making informed decisions, promoting transparency, meeting reporting requirements, facilitating comparisons, and supporting forecasting and planning activities. They provide a comprehensive view of a company's financial health and enable stakeholders to assess its viability and make informed decisions.

Dormant company: What you need to do

When your Singapore company is dormant, meaning it has no significant accounting transactions during the financial year, there are several things you should do to comply with the regulations set by the Accounting and Corporate Regulatory Authority (ACRA):

Submit annual returns

Even if your company is dormant, you must still file annual returns with ACRA. This must be done within 30 days of the Annual General Meeting (AGM) or within 6 months after the financial year's end, whichever is earlier. Most companies, especially the dormant ones fail to see the importance of this. Failure to comply may lead to further complications in the future.

Maintain proper accounting records

You are still required to maintain proper accounting records even if your company is dormant. These records should include bank statements, invoices, receipts, and other financial documents.

Notify ACRA of changes

If there are any changes to your company's registered address, directors, or company secretary, you must notify ACRA within 14 days. Also, you need to inform ACRA of the period of dormancy, and the reason for dormancy in that period. Filing fees still apply. Any late notification may result in fines or higher filing requirements.

File tax returns

If your company has not been generating income, you are still required to file nil tax returns with the Inland Revenue Authority of Singapore (IRAS). You will need the signed financial statements for this step. They serve as statements to account for the activities of the company represented by the directors of the company.

Consider closing the company

If you no longer have any need for your company, you may consider closing it. You can do this by filing a striking-off application with ACRA. However, you must pay all outstanding fees and taxes before doing so. The company must not be involved in any legal proceedings as well. If not, there may be further implications or delays in completing the striking-off process.

It is important to comply with these regulations to avoid penalties or legal issues with ACRA or IRAS. You may also approach us to find out more about managing your dormant company.

Setting up a Family Office in Singapore

What is a Family Office?

A family office is a private wealth management advisory firm that serves wealthy families and individuals. Its primary objective is to manage the financial and personal affairs of high-net-worth individuals (HNWIs) and their families.

A family office typically provides a range of services, including investment management, tax planning, estate planning, philanthropic planning, risk management, and concierge services. The office acts as a central point of contact for all aspects of a family's financial affairs. It aims to coordinate the efforts of various professionals, such as accountants, lawyers, and investment managers.

The family office model is designed to provide personalized and comprehensive support to wealthy families. By having a dedicated team of professionals to manage their affairs, families can streamline their financial management and minimize potential conflicts of interest. Family offices can also provide continuity of services across generations, ensuring that a family's wealth and values are preserved for the long term.

Who are some of the well-known family offices in Singapore?

There are several well-known family offices in Singapore, including:

  • Temasek Holdings - a state-owned investment company that manages a diversified portfolio of assets on behalf of the Singapore government.
  • GIC Private Limited - a sovereign wealth fund that manages Singapore's foreign reserves.
  • The Kuok Group - founded by Malaysian-born billionaire Robert Kuok, the Kuok Group is a diversified conglomerate with interests in real estate, hospitality, and agriculture.
  • The Kwee family - the Kwee family is known for their real estate holdings, including the iconic Raffles Hotel in Singapore.
  • The Lee family - the Lee family is best known for their involvement in politics, with several members having served as prime minister of Singapore. They also have interests in real estate and banking.
  • The Wee family - the Wee family is the controlling shareholder of United Overseas Bank, one of Singapore's largest banks.
  • The Lim family - the Lim family is known for their ownership of the Genting Group, a multinational corporation with interests in gaming, hospitality, and entertainment.

How to set up a Family Office?

Setting up a family office in Singapore involves a number of steps and considerations. Here are some general guidelines:

  1. There are two main types of family offices: single-family offices (SFOs) and multi-family offices (MFOs). SFOs serve a single ultra-high-net-worth family, while MFOs serve multiple families. You need to decide which type of family office is suitable for your needs.
  2. If you plan to offer financial services or advice, you will need to be licensed by the Monetary Authority of Singapore (MAS). You can approach us to determine the licenses required for your business activities.
  3. You need to hire a team of professionals to run the family office. This team may include investment managers, tax and legal experts, and support staff.
  4. You need to set up a legal entity for your family office. This may be in the form of a company, a trust, or a limited partnership. You can approach us to determine the appropriate legal structure for your needs.
  5. You need to establish investment strategies that align with your family's goals and risk tolerance.
  6. You need to choose service providers such as custodians, banks, and advisors.
  7. You need to establish governance policies that govern the operations of your family office. These policies should cover areas such as investment decision-making, risk management, and compliance.
  8. You need to establish reporting and communication processes to keep your family members informed about the activities of the family office.
  9. You need to comply with anti-money laundering regulations, data protection regulations, and tax regulations. You can approach us to find out more about these regulations.
  10. You should review and refine your strategy on a regular basis. This is to ensure that it remains aligned with your family's goals and objectives.

Overall, setting up a family office in Singapore can be a complex process. Talk to us today to find out more.

What are the Types of Passes in Singapore?

In Singapore, there are several types of passes that allow foreigners to live and work in the country. Some of the most common types of passes are:

  1. Employment Pass (EP): The Employment Pass (EP) is a type of work visa in Singapore that allows foreign professionals, managers, executives, and skilled workers to work and live in Singapore. The EP is usually issued to individuals who have a job offer in Singapore. They need to possess the relevant qualifications, work experience, and skills. To be eligible, applicants must have a job offer from a Singaporean employer. They need to possess a recognized degree, professional qualifications, or specialized skills. The employer must also demonstrate that the job cannot be filled by a Singaporean candidate. The validity of an EP ranges from 1 to 2 years, and it can be renewed as long as the applicant continues to meet the eligibility criteria. EP holders are also eligible to apply for permanent residency in Singapore after working for a certain number of years. The EP is one of the most common types of work visas in Singapore and is highly sought after by foreign professionals looking to work in Singapore, which is known for its strong economy and attractive job opportunities.
  2. S Pass: The S Pass is a type of work visa that allows mid-level skilled foreign workers to work in Singapore for up to two years. It is designed for individuals who have a degree, diploma, or technical certificate, as well as relevant work experience in their field. To be eligible for an S Pass, the applicant must earn a fixed monthly salary of at least SGD 2,500 and meet other criteria such as work experience, qualifications, and skill level. The employer must also apply for the S Pass on behalf of the employee and meet certain requirements such as quota and levy requirements set by the Ministry of Manpower. The S Pass is a popular option for foreign workers who do not qualify for an Employment Pass (EP) which is a higher-level work visa. However, compared to the EP, the S Pass has more stringent requirements, including a lower salary threshold and more limited duration of stay.
  3. Work Permit: This pass is for semi-skilled foreign workers in sectors such as construction, manufacturing, and services. A work permit in Singapore is a legal document that allows foreign workers to work in Singapore. It is issued by the Ministry of Manpower (MOM) and is necessary for all foreign workers, except for those who hold a valid Employment Pass, S Pass, or Personalised Employment Pass. There are several types of work permits in Singapore, including:
    • Work Permit for Foreign Domestic Workers: This is for those who work as domestic helpers in Singapore.
    • Work Permit for Constructions Workers: This is for those who work in the construction industry.
    • Work Permit for Manufacturing Workers: This is for those who work in the manufacturing industry.
    • Work Permit for Marine Shipyard Workers: This is for those who work in the shipyard industry.
    • Work Permit for Process Workers: This is for those who work in the process industry.

    The requirements and eligibility criteria for obtaining a work permit vary depending on the type of work permit and the industry in which the foreign worker will be working. Generally, the employer must apply for the work permit on behalf of the foreign worker and meet certain requirements, such as paying a security bond and providing medical insurance.

  4. Dependent's Pass (DP): This pass is for the spouse or unmarried children (under 21 years old) of an EP holder or a Singaporean citizen/permanent resident. The Dependent's Pass (DP) in Singapore is a type of long-term visa that allows spouses and unmarried children (below 21 years old) of eligible Employment Pass or S Pass holders to stay and live with them in Singapore. It enables the dependents to live, work, and study in Singapore without the need to apply for separate work or student visas. The validity of a Dependent's Pass is usually tied to the validity of the main work visa (Employment Pass or S Pass) of the sponsor. DP holders may apply for a Letter of Consent (LOC) from the Ministry of Manpower (MOM) if they wish to work in Singapore. A LOC allows them to work for any employer in Singapore, subject to certain conditions. To be eligible for a Dependent's Pass, the sponsor must earn a minimum monthly salary of S$6,000 (or S$12,000 for those with newborns). The sponsor must also provide sufficient documentation to prove their relationship with their dependents.
  5. Long-Term Visit Pass (LTVP): This pass is for foreign spouses, unmarried children (under 21 years old), and parents of Singaporean citizens or permanent residents. The Long Term Visit Pass (LTVP) in Singapore is a type of immigration pass that allows a foreigner to stay in Singapore for an extended period of time, typically for up to 2 years. The LTVP is usually issued to spouses, unmarried children under 21 years old, and parents of Singaporean citizens or permanent residents. The LTVP allows holders to live and work in Singapore, subject to certain conditions. For example, LTVP holders who wish to work must obtain a work permit. The LTVP also provides access to healthcare and education services in Singapore. To apply for the LTVP, applicants must be sponsored by a Singaporean citizen or permanent resident. The sponsor must demonstrate that he or she can support the applicant during their stay in Singapore. The application process typically takes several weeks and involves submitting various documents, such as passport copies, marriage certificates, and proof of financial support. It is important to note that the LTVP is not the same as a Singapore work visa or permanent residency. LTVP holders are still considered foreigners. They must adhere to Singapore's immigration laws and regulations.
  6. Personalised Employment Pass (PEP): This pass is for high-earning foreign professionals who are not sponsored by an employer in Singapore. The Personalised Employment Pass (PEP) is a work visa issued by the Ministry of Manpower (MOM) in Singapore. It is for high-earning foreign professionals who wish to work and live in Singapore on a long-term basis, regardless of whether they are employed or not. The PEP is granted for a period of three years and is non-renewable. Holders of the PEP are allowed to change employers without having to reapply for a new work visa. This gives them greater flexibility and independence in their career choices. This also allows them to explore other employment opportunities in Singapore. To be eligible for the PEP, applicants must meet certain criteria, including:
    • A minimum fixed monthly salary of SGD 18,000 (or SGD 12,000 for applicants in the financial sector)
    • A good employment record and professional qualifications
    • At least three years of relevant work experience
    • Currently employed in Singapore in a managerial, executive, or specialized role
    • Not owning a business registered in Singapore or not being a shareholder or director of a Singapore company

    Applicants who meet the eligibility requirements must submit an online application through MOM's website. The processing time for the PEP application is typically around 8 weeks, and successful applicants will be notified by email.


These are just some of the types of passes available in Singapore. Their eligibility criteria and application procedures may vary depending on the specific pass. To find out more in detail, do reach out to us today.

What are the Tax Incentives for Start-ups in Singapore?

Singapore offers a range of tax incentives to encourage entrepreneurship and innovation. This is particularly for start-ups in their early stages of development. Here are some of the tax incentives that start-ups in Singapore may be eligible for:

1. Start-up Tax Exemption Scheme (SUTE): This scheme is available to companies that are incorporated in Singapore. Such companies should have no more than 20 individual shareholders. Under this scheme, eligible companies can claim a tax exemption on the first S$100,000 of normal chargeable income. This can be claimed for each of their first three consecutive years of assessment.

2. Partial Tax Exemption (PTE): Companies that do not qualify for the SUTE can still claim a partial tax exemption on their taxable income. Under this scheme, eligible companies can claim a tax exemption on 75% of the first S$100,000 of normal chargeable income, and 50% of the next S$100,000 of normal chargeable income.

3. Tax Incentive for Angel Investors (AIS): This scheme encourages investments in early-stage start-ups by providing tax incentives to angel investors. Under this scheme, investors who invest at least S$100,000 in qualifying start-ups can claim a tax deduction of 50% of their investment amount for the first two years.

4. Early Stage Venture Fund (ESVF) Scheme: This scheme encourages investments in early-stage technology start-ups by providing tax incentives to venture capital firms. Under this scheme, qualifying venture capital firms can enjoy tax exemptions on income derived from their investments in qualifying start-ups.

These are just a few of the tax incentives available to start-ups in Singapore. It's worth noting that eligibility criteria, application procedures, and other details may vary depending on the specific scheme.


A closer look at the criteria required to be eligible for the Start-up Tax Exemption scheme:

1. The company must be incorporated as a private limited company in Singapore.

2. The company must be a tax resident in Singapore for the year of assessment in which the tax exemption is claimed. A company is a tax resident if the control and management of its business are exercised in Singapore.

3. The company must have less than 20 individual shareholders throughout the basis period for the year of assessment in which the tax exemption is claimed. This limit does not include shareholders which are corporations.

4. All individual shareholders of the company must be individuals who are not carrying on a trade or business or individuals who are holding shares as investments.

5. The company must be a Singapore tax resident company. Its annual revenue for the financial year must not exceed S$5 million.

Under the SUTE scheme, eligible companies can claim a tax exemption on the first S$100,000 of normal chargeable income for each of their first three consecutive years of assessment. For further details, do reach out to us today to take advantage of these incentives.


  1. 全球投资者计划的资格标准

作为一个有意在新加坡创业或投资的投资者,您可以通过全球投资者计划(GIP)申请新加坡永久居民身份(Permanent Resident)。如果您符合以下资格标准,您就有资格申请。


个人概述 认可企业家 第二代企业家 快速成长公司创始人 家庭办公室负责人
申请资格 a)  必须拥有至少3年的创业和商业记录


b)  您目前经营的公司1在您申请的前一年的年营业额至少为2亿新元,在您申请的前三年的年平均营业额至少为2亿新元


c)  如果您的公司是私营公司2,您应该至少拥有30%的股份;和


d)  贵公司必须从事附件B所列的一个或多个行业。

a)     您的直系亲属应该拥有至少30%的股权,或者是您使用的公司的最大股东


b)     该公司的年营业额必须在您申请之前的一年至少为5亿新元,在您申请之前的三年平均每年至少为5亿新元


c)     您必须是公司管理层的一员;和


d)     贵公司必须从事附件B所列的一个或多个行业。

a)  您必须是一家估值至少5亿新元的公司的创始人和最大的个人股东之一


b)  您的公司必须投资于有信誉的风险投资或私人股本公司;和


c)  贵公司必须从事附件B所  列的一个或多个行业。

a)     您必须拥有至少5年的创业、投资或管理记录;和


b)     您必须拥有至少2亿新元的净投资资产





·        #投资选择 选择 A 或 B 或 C 选择 C



选择A: 投资250万新元在一个新的商业实体或扩大现有的商业运作。

选择B: 向一个投资新加坡公司的GIP基金3投资250万新元。

选择C: 投资250万新元,在新加坡新建或现有的管理下资产(AUM*)至少2亿新元的单一家族理财室。




3 GIP基金名




  1. 投资选择评价标准4
选择A 投资新元250万新元在一个新的商业实体或扩大现有的商业运作。
·        申请方案A的申请人必须提交一份详细的5年业务或投资计划,其中包括预计在方案A公司会发生的就业、开支和财务预测(如GIP申请表表格B所述)。商业计划的评估将基于其可行性、您在发展A选项公司中的角色、商业活动和当地就业机会的创造;和

·        您应该至少持有公司30%的股权,并且必须是该公司管理团队的一员

·        您选择的公司必须从事附件B中列出的行业之一



4 申请人将根据申请中提交的信息和面试进行评估


选择B 向一个投资新加坡公司的GIP基金投资250万新元
·        申请方案B的申请人将根据其未来在新加坡的业务或投资计划进行评估。这可能包括拟议的商业活动、投资额、创造当地就业机会等具体细节。
选择C 投资250万新元,在新加坡新建或现有的管理下资产(AUM*)至少2亿新元的单一家族理财室。
·        申请选择C的申请人必须提交一份详细的5年业务计划,包括预计的就业和年度财务预测(如GIP申请表表格B所述)。商业计划将根据您在单一家族理财室中的角色、家族理财室的功能、您建议的投资部门、资产类型和地理重点进行评估。



  1. 审批后投资要求


您将被要求在您的AIP PR身份的6个月内进行投资。250万新元(根据选择的投资选项)的投资额必须从您在新加坡注册的银行开立的个人银行账户中以您的个人名义进行。在作出所需的投资后,您必须向EDB提交有关投资的书面证明文件。一些必需的文件包括:


  1. 经核证的投资文件副本(例如选择A及C投资的普通股证书)
  2. 银行对账单和借贷通知显示投资是由您在新加坡注册的银行以您的单独名义开立的个人银行账户进行的。
  • 投资条款和条件上签署的承诺正本(投资承诺)。
  1. 证明您在本行的帐户已圆满完成的银行证明信。银行推荐信中应包含的信息
    1. 姓名
    2. 护照号码
    3. 账户类型
    4. 账户号码








  1. 您在新加坡注册的家族理财室资本化前后的ACRA Bizfile记录
  2. 证明AUM及其在新加坡注册家族办公室的至少2亿新元所有权的证明文件的原件和最新的认证真实副本或最新的公证副本;该等文件须由EDB自行决定。
  • 对于存放于单独投资控股公司或私人信托的资产,必须提供最新的投资管理协议(investment Management agreement)公证副本,以证明该资产由您在新加坡的家族理财室管理。














  • 备受推崇的银行管辖区
  • 政治和经济稳定
  • 财政责任和资本充足的银行
  • 腐败程度低,法治强
  • 接受外国公司
  • 存款保险高达 75,000 新元
  • 与多个国家的有利税收协定





新加坡公司银行账户的最低存款要求通常高于其他司法管辖区。原因是新加坡是著名的银行中心。所以新加坡金融管理局 (MAS)希望吸引更高素质的公司和投资者。






开设新加坡公司银行账户时还有其他考虑因素。其中一个重要因素是所有公司受益人的国籍,以及所有董事的居住地点。因此,会计和企业监管局 (ACRA) 要求所有公司设立控制人登记册. 您需要出示业务关系和运营的证明。向客户出示发票等证明会很有帮助。不同的银行可能更欢迎某些产业,但总的来说,规则对所有人都是一样的。





Download the Telegram app and follow us for the latest updates:









您可以为您新的电子商务业务选择 3 种公司结构模式。

在多数情况下,我们总是建议我们的客户选择选项 1。私人有限公司为股东和董事提供更多的责任保护。随着您的业务规模扩大以及您在未来引入新的投资者和股东,它还提供了更多的灵活性。


在您决定电子商务平台和商业模式之后,是时候将您的电子商务业务成立在新加坡了。在 SG Company Services,我们为您的所有注册需求提供一站式解决方案。在新加坡成立公司的过程并不复杂。我们还可以协助您为自己的电子商务商店开设商业银行账户。查看这篇文章以了解更多关于在新加坡成立公司的要求。



会在亚马逊、Lazada 和 Shopee 等平台上还是打算建立自己的电子商店呢?大多数电子商务平台如亚马逊和 Shopee 都提供从电子邮件到营销的电子商务功能,因此您几乎可以在这些平台上销售任何东西。其中缺点是这些平台上已有许多和您销售的物品相似的选择,必然存有一定的竞争。


如果您决定建立自己的电子商务网站,您将需要花更多时间与精力,自己设计和开发网站或聘请网络开发人员。一般网络开发人员的聘用费取决于您所设计得网站外观,功能等。您还必须考虑到网站托管、域名注册和 SSL 证书 (SSL 证书是一个数字证书,用于认证网站的身份并启用加密连接)。这不但让您可以更好地掌控您的电子商务业务的外观以及决定销售的产品,您也不受电子商务平台设定的条款和条件的支配。更重要的是,您可以创建品牌来培养客户忠诚度。通过您自己的网站,您还可以安装营销工具来分析和跟踪客户行为,从而通过数据分析来优化您的业务。


下一步是设置您的支付系统。新加坡最受欢迎的电子商务支付网关包括贝宝 (Paypal) 和 Stripe。它容易使用并与许多电子商务平台集成。它还为买家提供保护,因此如果您身为卖家没有按照成交约定递送产品或完成服务,买家可以获得退款。贝宝(Paypal) 和 Stripe 会从每笔交易收取佣金,以换来这份保障。若是主要在本地销售的企业,卖家也普遍接受 Paynow,这是一种即时且零交易成本的本地银行间支付方式。


下一步是设置会计系统。这将让您能够记录您的支出和收入以及纳税情况。新加坡小企业通用的会计软件是 Xero。它基于云且易于使用,使其成为刚起步的电子商务企业的良选之一。Xero 也提供了许多功能,例如开具发票、记录费用和员工付款。它还与贝宝 (Paypal) 和 Stripe 集成,以便您可以在一个系统里查看您业务的所有财务状况。若您想完全专注于发展业务而不想进行财务管理,您可以考虑将财务管理外包给注册会计师。


最后一步是建立客户关系管理(CRM)系统。CRM 将帮助您记录客户的联系信息、购买历史以及您与他们的任何其他互动。这些宝贵的资料,能助您把营销计划针对特定目标客户。新加坡小型企业流行的 CRM 软件是 Salesforce。它能提供许多功能,例如联系资料管理、客户点击和购买行为资料管理。Salesforce 还与贝宝 (Paypal) 和 Stripe 集成,以便您可以在一个系统里查看您业务的财务状况。



How does a company pay dividends in Singapore

How does a company pay dividends in Singapore

We hear so much of this term dividends but we seldom discuss the rules and implications associated with it. As most will know, it is basically profit (or part of it) that a company distributes to its owner(s) at the end of or during a company’s financial year.

What are the types of dividends?

There are mainly 2 types in Singapore: interim dividends vs final dividends.

You can announce Final dividends during the Annual General Meeting (AGM), after reporting the company’s financial statements and confirming the final profits for the year. You cannot cancel it once declared.

Interim dividends, as the name suggests, can be distributed any time between 2 AGMs. It can take place before confirming the annual profit or loss and the final financial statements. You can pay out of retained earnings or current year profits.

How to declare dividends?

You need to prepare the following documents in preparation for dividend declaration:

  1. Dividend vouchers
  2. Dividend register
  3. Resolution for dividend payment
  4. Shareholders’ approval with signatory
  5. Warrants to shareholders
  6. Minutes of the meeting specifying the location, date and time of the meeting, and details on the declared dividends

For final dividends, the dividend amount and payment form, i.e. cash, shares, options or other properties) is suggested by the directors during the AGM. The shareholders will then vote and finalise the proposal. You can then pay the dividend any time after this declaration date.

For interim dividends, the process is similar. The only difference is the board of directors alone can decide on the dividends, as long as the company’s profits justify it.

Do note there is no limit for dividends as long it does not exceed the final net profit of the company to date.

How to distribute dividends?

The company’s board of directors will announce in detail in the form of a dividend declaration. It is important to note that dividends should be given only when the company has made profits.

This is specified in Section 403 in the Companies Act, that you can only pay dividends to shareholders of any company out of profits. Some of the common questions we received from our clients are:

  1. Can dividends be paid out of profits of a larger holding group of companies of which the dividend-receiving company is a member?

Answer: No, the dividends payable must be profits of its own company.

  1. Is it necessary to maintain paid-up capital before declaring dividends?

Answer: No, the dividends payable must be profits of its own company.

  • Is capital appreciation or gains part of the company’s profits?

Answer: Yes, as long as the company’s constitution allows such dividend payment.

  1. Can current profits include profits that have been carried forward from previous years?

Answer: Yes, dividends can be issued from retained earnings even if there is no current-year profit

In the same section, it also states that any violation could lead to a fine of up to S$5,000 or imprisonment up to 12 months for the director or chief executive officer. They are also liable to the company’s creditors to the extent to which the dividends paid have exceeded the profits. If you are a shareholder who received dividends that are wrongfully distributed, talk to us today so we can advise you better.

What is the tax treatment of dividends in Singapore?

Generally, shareholders who received dividends from a Singapore resident company will not need to pay tax on that dividend income. This is due to Singapore’s one-tier taxation system, where corporate tax applies to the company’s profits already. To be precise, non-taxable dividends include:

  • Dividends paid by a resident company on or after 1 Jan 2008
  • Foreign sourced dividends received by resident individuals on or after 1 Jan 2004
  • Income distribution from Real Estate Investment Trusts (REITs)

Dividends that are taxable include:

  • Dividends paid by co-operatives
  • Foreign sourced dividends received in Singapore by resident individuals through a partnership in Singapore. In some cases, no tax is payable if certain conditions are met. Talk to us to find out more.
  • Income distribution from REITs derived by individuals through a partnership in Singapore.

What is the accounting treatment?

Upon the declaration of the dividends, the dividend payable is a credit entry under a liability account. It is owing to shareholders until full settlement. After paying the dividends, the dividend payable account is debited by its full amount, together with a credit entry to the company’s cash account by the same amount.

If you have further questions on the company’s dividend declaration and its implications, feel free to contact us for a non-obligatory discussion.


Download the Telegram app and follow us for the latest updates:

Senior Worker Early Adopter Grant and Part Time Re-Employment Grant

Senior Worker Early Adopter Grant

In 2019, the Singapore government announced it will increase the retirement age (RA) to 65 years old by 2030, while it will increase the re-employment age (REA) up to 70 years old. This year, the Central Provident Fund or CPF contribution rates will be increased as well to boost elder workers’ retirement savings.

In addition to these changes to support elder workers, the government has in place support packages namely the Senior Worker Early Adopter Grant (SWEAG) and the Part-Time Re-employment Grant (PTRG).

These grants are available from 1 July last year, to employers who are willing and able to implement higher internal retirement age and re-employment age and provide more part-time re-employment opportunities.


What Is the Senior Worker Early Adopter Grant (SWEAG)?

It provides support of up to a maximum of $250,000 for employers to increase their own retirement and re-employment ages ahead of legislative schedule.

The SWEAG funding computation will be based on the number of resident Senior Workers (SWs) and the extent of increase in internal retirement and re-employment ages. The total eligible funding caters to a maximum of 50 Senior Workers (SWs) per employer.

The extent of advancement of internal retirement age and re-employment age Funding per SW (age 60 and above) Total Eligible Funding (Cap of 50 SWs per company)
By 1 year each $1,000 $50,000
By 2 years each $2,500 $125,000
By 3 or more years $5,000 $250,000


If there are varying extensions to the workers’ retirement or re-employment ages for different groups of Senior Workers, i.e. increase the RA/REA for its 40 Executives by 3 years, but for its cleaners by 1 year, the Grant will be tied to the lowest tier of Funding which is the first row from the table.


What Is the Part-Time Re-employment Grant (PTRG)?

It provides support of up to a maximum of $125,000 for employers who commit to a part-time re-employment policy for its eligible senior workers.

The PTRG funding computation will be based on the number of Senior Workers (SWs) employed, at $2,500 per resident senior worker, up to a cap of $125,000 per employer.


How to qualify?

In order to be eligible, employers have to complete the following.

  1. a) Furnish updated HR policy properly documented on:
  2. SWEAG: internal retirement and re-employment ages showing the respective increases from current policy.
  3. PTRG: the part-time re-employment policy for Senior Workers
  4. b) Document the communication of the new policy to all employees via mediums such as employees’ accessible website, email, memo/circular and employee handbook.
  5. c) Submit duly completed claim form that includes information on all senior workers.
  6. d) Issue addendums to employment contracts documenting the policy change to all employees.
  7. e) The addendums will need to be individually addressed to and signed by the Senior Workers.
  8. f) For all other workers, the addendums can be standardised without having to be individually addressed nor acknowledged.
  9. g) Submit CPF Form 90 of all the senior workers you are claiming for.
  10. h) Prepare NRICs of Senior Workers for sighting by the programme partner (either physically, virtually or via photocopies).


How to apply?

All employers can apply for SWEAG and/or PTRG if they are legally registered or incorporated in Singapore. This includes societies and non-profit organisations such as charities and voluntary welfare organisations. Governmental agencies, statutory boards and other organs of state are not eligible.

NTUC’s e2i and SNEF are the appointed Programme Partners for SWEAG and PTRG. This service is available to employers at no cost. Employers are to directly submit the applications themselves. If you wish to find out more, talk to us today.


Download the Telegram app and follow us for the latest updates: