Tax Computation Statement as per Taxation of Singapore

Running head: TAX
Tax
Name of the Student:
Name of the University:
Authors Note:

1TAX
Table of Contents
Answer to Question A:...............................................................................................................2
Answer to question B:................................................................................................................3
Answer to question c:.................................................................................................................5
Answer to question d:.................................................................................................................6
Reference....................................................................................................................................8

2TAX
Answer to Question A:
In the given question, a company engaged in the food catering business requires help
in the preparation of the tax computation statement as per the Taxation of Singapore. The
fooding and catering company has earned a net profit before tax $620000 on the annual
turnover of $5000000.
According to the Charging section S10(1), all the incomes that are derived or earned
from Singapore or a partial of it accrued and or fully accrued or received in Singapore or
from outside of Singapore are regarded as Income and the Income tax will be chargeable in
accordance with the Provisions of the act (OOI et al. 2018).
The rate of Tax is determined by the Government is 17% for the year 2017.
The income is chargeable under S10(1)(a): as any trade business or profession.
Note 1: rental income is not a part of regular income of the entity, therefore it is chargeable as
additional income or non-trading income. If the assesse is engaged in the business of renting
property then in that case the results will be trading income (Agarwal and Qian 2014).
Note 2:
Interest from recognised or national Banks are not taxable according to the income tax act
only for the individual not for the business entities.
Note 3:
In the given case the dividend income is taxable under section 10(25) of the income tax act
under the head “income received in Singapore from outside Singapore”. The income that is
arrived from any foreign company is taxable only if it is received in Singapore.
Note 4: