Singapore, 11th January 2011
One of the most dreaded things we all face is declaring our taxable income. Nobody really wants to pay taxes, right? As a lighting design practice however, whether we like it or not, we need to be tax responsible, so in setting up my new company KLD I have to take care of this aspect which is crucial for the future. In order to operate my business in Australia or Singapore and do projects overseas I need to register the company for tax so that the company has a proper tax file registration. Then in order to avoid double taxation for my clients I need to apply for a tax residence certificate to prove I pay my taxes in the country where my business is registered. I have also to decide whether to register the company for GST (Goods & Services Tax). We have always done that in Australia and I am considering the same for Singapore. Most of our projects are overseas which generally are exempt from GST and the local projects generate fees below the yearly average threshold so we do not really have to register.
Having said that, the allocation of our lighting design project fees and income still need to consider the possible taxation it may attract. Do we park the project (and thus fee income) in Singapore or in Australia? Most of our projects take more than a year to complete hence the fee income is spread over more than one financial year. With project building and construction schedules variable and uncertain, planning of the company income is not necessarily an easy task! And let’s not talk about personal income tax…that is another subject all together 🙂
After yesterday’s iconic and historic Raffles Hotel, the latest addition to the Singapore skyline, the Marina Bay Sands Hotel and Casino Resort seems the total anti-pole, an exponent of today’s luxury, sophistication and latest technology is my choice for Light Watch. A visit to its unique sky garden is certainly breath taking.