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WhySINGTAX Logo?

  1. Background
  2. Why SINGTAX?
  3. SINGTAX vs. Spreadsheet Software Comparison Chart

BACKGROUND

Traditionally, spreadsheet software such Microsoft® Office Excel, Lotus® 1-2-3® are used to perform tax computations because of their inbuilt mathematical capabilities. However, its use in this area is still very “manual” in nature. What is meant by “manual” is that different components of the tax computation (i.e. income sources, revenue deductions, adjustments, s14Q deductions, capital allowances, losses, donations, etc) are usually neither integrated nor automated.

The steps to perform a tax computation using spreadsheet software are typically:

  1. Firstly, the tax staff has to work through the calculations of each of these components (i.e. income sources, revenue deductions, adjustments, s14Q deductions, capital allowances, losses, donations, etc) and then update or newly create such components separately.

  2. Secondly, the staff has to determine what are the necessary tax adjustments as well as the order of set-off of items like capital allowance, losses, group relief, donations, etc that are to be made in the main computation to arrive at the chargeable income.

  3. He/she also has to calculate the full or partial tax exemption [and any other personal reliefs for personal tax computation] to arrive at the chargeable income (after exemption).

  4. The tax payable is then computed based on that year of assessment’s tax rate before deducting any tax rebate. If foreign tax reliefs are claimable, manual calculations and apportionments would also have to be performed.

  5. Thereafter, cross-referencing would have to be tidied up manually.

This entire process is very time consuming and prone to calculation errors, cross-referencing errors, omission errors, risk of not carrying forward certain items, various types of inconsistent formatting for a particular module, wrong formulas used, errors in the order of set-off, etc. These bottlenecks in the tax computation process waste hundreds of hours per year and increases paper usage (due to wastage).

WHY SINGTAX?

Because SINGTAX is the BETTER and SMARTER way to perform tax computations. SINGTAX will eradicate all tax computation redundancies created using spreadsheet software to perform tax computations. Click here to view bottlenecks encountered using spreadsheet software and how SINGTAX bust off these bottlenecks.

Being a fully automated and integrated professional tax software (with preformatted templates which conforms to the Singapore Income Tax Act), SINGTAX radically reduces the time taken to finish a tax computation. Moreover, all tax changes announced in Budget Speeches will be updated frequently and the program will prompt you to make (or not make) any of such new changes/incentives during those applicable periods.

More importantly, time and resources need not (and should not) be expended to ensure every tax computation is correct and correctly referenced. SINGTAX does it for you automatically. By eliminating bottlenecks in the tax computation process, SINGTAX drastically reduces time and other related wastage. Time and other resources that are redeemed are opportunities for increasing revenue. More time should be spent making money than losing money.

Some time-savers of SINGTAX Corporate include:

  • Automatic calculation of partial tax exemption

  • Automatic calculation of full tax exemption on the first S$100,000 of normal chargeable income for new start-up companies

  • Auto transfer to qualifying expenditure (fixed assets) module for assets expensed of

  • Auto transfer to main tax computation any expenses added back or deducted

  • Auto medical expense restriction calculation

  • Auto interest restriction calculation

  • Auto foreign tax credit relief calculation

  • Auto functional non-S$ currency computation

  • The order of set-off of capital allowances, losses, donations against income are also done automatically

  • Auto transfer of data to Form C, Form IRIN 301, Form C-S and ECI Form for faster form-filling

  • For next year, all data such as CA, HP, losses will be carried forward in just one mouse click only.


    And many more…


Some time-savers of SINGTAX Personal include:

  • Auto calculation of accommodation benefit

  • Auto calculation of hotel accommodation benefit

  • Auto calculation of motor car benefit

  • Auto calculation of preceding year tax reimbursement benefit as well as auto calculation of the current year tax reimbursement benefit for cessation cases.

  • Auto calculation of Not-Ordinarily Resident (NOR) computation

  • Auto calculation of Area Representative Basis of Assessment (RBOA) computation

  • Auto calculation of Tax-On-Tax Computation

  • The comprehensiveness of the software makes it easy to play out different scenarios quickly so as to minimize adverse tax consequences and maximize opportunities for tax savings.

  • Auto calculation of earned income relief

  • Auto calculation of working mother’s child relief

  • Auto transfer of data to IR8A forms and IR21 forms for faster form-filling

  • For next year, all data can be carried forward in just one mouse click only


    Any many more…

SINGTAX vs. SPREADSHEET SOFTWARE COMPARISON CHART

Bottlenecks encountered when using spreadsheet software to perform tax computations.
No. Description Spreadsheet SINGTAX
1
C&P
Compilation of Index (or Cover Page) Indexing of schedule numbers is done manually by staff. When a schedule is added or deleted, staff has to manually re-number all schedules. Auto indexing of schedule numbers. Auto re-indexing for any additions or deletions of schedules.
2
C&P
Year of Assessment and basis period titles Needs to be updated manually on every page in the new year. Automatically updates these headings on every page in the new year.
3
C&P
Error checking.
CTax: e.g. ensure that maximum deductions allowable for PIC deductions/allowances do not exceed limit allowed.

PTax: e.g. ensure maximum child relief allowable for each child does not exceed limit allowed.

There are usually no automated error checking and these errors slip into the tax computation producing wrong results. Error checks are performed at data entry level as well as at the tax computation process by SINGTAX automatically.
4
C&P
Calculations.
CTax: amount of data to be processed can be huge, e.g. fixed assets.

PTax: complex computations such as NOR, Tax-On-Tax, Area Representative and combinations of these.

Calculations are done manually. Results have to be checked manually by reviewers for errors incurring expensive time costs wasted on redundant calculations. Calculations are done automatically by the system and are free of human errors. SINGTAX Corporate has been used more than 8 years producing thousands of computations.
5
C
Deductions, Capital Allowances, Losses, certain Double Deductions Staff may not know which level to set-off in tax computation. SINGTAX will determine the item and automatically adjust it according to the level as stipulated in the Singapore Income Tax Act.
6
C
Partial or Full Tax Exemptions Done manually. Error occurs if formula not changed by staff, especially the chargeable income figure. Automatically calculated by system. The system will indicate the YAs applicable for the first 3 YAs for full tax exemption.
7
C
Foreign Tax Credit (FTC) calculations. Staff may not know how to do. Automatically calculated by system.
8
C&P
Losses c/f, Loss Carry Back and Group Relief. Done manually. Order of set-off as well as threshold could be wrong. SINGTAX will automatically adjust it according to the level as stipulated in the Singapore Income Tax Act.
9
C&P
Change in figures Requires manual recalculation and have to ensure that all figures in affected schedules and main tax computation are updated. Automatically recalculated by system. All affected schedules and main tax computation are automatically updated by system.
10
C&P
Time taken to generate a tax computation Very time consuming. Very productive.
11
C&P
Structure of tax computation Have to be determined by staff and different staff has different formats making review difficult. Tax computation format set according to the Singapore Income Tax Act. Standardised format makes review work much easier.
12
C&P

Forms filling.
CTax: Form C, Form IRIN 301, Form C-S and ECI Form.

PTax: Form IR8A, Appendix 8A, Appendix 8B, Form IR8S, Form IR21, Appendix 1, Appendix 2 and Appendix 3.

Additional time needed to fill up forms manually with possible data entry errors. Forms automatically filled by system. Saves time and error free.
13
C&P
Budget changes Can be easily overlooked and error will result if formula is not updated by staff. All relevant budget changes are updated to SINGTAX as soon as details are released by IRAS.

C = affects only corporate tax
P = affects only personal tax
C&P = affects both corporate and personal income taxes

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