Posts Tagged ‘tax attorneys’

Hi, my names Alex and I work for Danbro – Contractor Accoutants, as part of the marketing team. In this article I will be discussing what and how a PAYE Umbrella Company works. Looking at the advantages & disadvantages of using one and how to go about getting one set up.

A PAYE umbrella company service is commonly used by contractors as a more tax efficient & hassle free way of handling their earnings. With a PAYE Umbrella Company you become an employee of the chosen umbrella company. Then each month you simply instruct the umbrella company to invoice your agency via time sheets that are usually submitted online.

An umbrella company will assess your IR35 status and offer you advice on how to operate tax efficiently. For instance if you are outside IR35 it will give you the opportunity to go down the limited company route for contracting, meaning the umbrella company will create a limited company in your name, pay you a minimum salary and then the rest via dividends; significantly decreasing the amount of tax you are hampered with.

The Key points
• Contractors become employees of an umbrella company.
• Each week or month the contractor instructs them to invoice the agency/client based on their time sheet.
• The umbrella company then pays the contractor a net salary after deducting national insurance contributions and income tax on their earnings.
• After securing a contract you instruct your agent to send a contract to the umbrella company for signing.
• Expenses like travel, computer costs, training etc, can all be claimed when working under an umbrella company.
• There will be a separate contract in place between you and the umbrella company.

Why use an umbrella company
There are many factors contractors should take into account before setting up an umbrella company. The main one being financial considerations; is this the most tax efficient way to operate? How will your IR35 status affect your earnings? Depending on the value of your contract there may be a better way to operate such as setting up a limited company. As always I would recommend contacting a contractor accountant that handles many solutions, then they will be able to tailor you a solution to suit your needs. Most good contractor accountants will provide this consultation for free, and provide you with a good idea of how much money you can take home on their service. Most umbrella companies will also provide an Umbrella Company Calculator via their website to provide an estimate of the amount a contractor can earn taking into account their wage and expenses etc.

For further details, please contact Danbro on: 01253 600141,
General Enquiries: 01253 600140,
London Office: 020 7836 8400 or
E-Mail: enquiries@danbro.co.uk

Danbro is a firm of award winning Chartered Management Accountants, providing specialist accountancy and payroll services to contractors and freelancers throughout the UK.

Summary:

Except for some exceptions, all heavy highway vehicles with a gross weight of 55,000 lbs. and more and using the public highways need to pay the tax as per the federal Heavy Vehicle Use Tax regulations.

Article:

Except for some exceptions, all heavy highway vehicles with a gross weight of 55,000 lbs. and more and using the public highways need to pay the tax as per the federal Heavy Vehicle Use Tax regulations. So it becomes mandatory for heavy highway vehicles users to file form 2290. This article deals about the consequences that need to be faced if you don’t file form 2290for a taxable heavy highway vehicle.

• What if I don’t file Form 2290?
• Not signing the return
• Claiming refund of Heavy Vehicle Use Tax already paid
• Sale of vehicle
• Getting stamped Schedule 1 on short notice

What if I don’t file Form 2290?

As per the law there will be penalties imposed on the persons who are using taxable heavy highway vehicle and failing to file the tax return. Even false filing or fraudulent returns will be penalized. Apart from these penalties there will be interest charged on delayed payments. In case if you can show the reasonable cause for not filing the return on time, you may be exempted from paying the penalties. Also in case of filing the return after the due date, you need to attach a detailed explanation for the delay with the valid reason.

Not signing the return

In case the tax return is filed without signing, the return will be sent back for signing. It is important to note that an unsigned return is not considered as filed return.
Claiming refund of Heavy Vehicle Use Tax already paid

In case a taxable heavy highway vehicle is destroyed, stolen, or sold before June 1 or for one that was used 5,000 miles or less (7,500 miles or less for agricultural vehicles), a refund for tax paid can be claimed on the subsequent Form 2290 filed. Form 8849 can also be used to claim the refund.

Till the end of the Form 2290 tax period, form 8849 cannot be filed. Let us take an example of tax paid for the period July 1, 2009, through June 31, 2010, for a vehicle used 5,000 miles or less during the period, a refund on Form 2290 (or refund on Form 8849) cannot be claimed until after June 30, 2010.

Sale of vehicle

In case a vehicle was sold, the tax payer who filed the return and paid the tax gets the credit.

Getting stamped Schedule 1 on short notice

Electronic processing of schedule 1 can normally take 2 days. In case of queries relating to registration deadline, you can dial to the IRS Taxpayer Assistance centre in the vicinity and can clarify your doubt regarding when you can file the form 2290 there. Check out www.Tax2290.com for efficient e-filing of excise taxes.

Author is a tax news specialist. view his site at http://www.tax2290.com

Annual General Meeting

Under Section 175 of the Singapore Companies Act, a local company is required to hold its first Annual General Meeting (AGM) within 18 months of its incorporation. At the AGM, the directors shall present the company’s accounts that comply with the requirements of the accounting standards and give a true and fair view of the status of the company to its shareholders. Subsequent AGMs must be held every calendar year and the interval between these meetings should not be more than 15 months apart.

Audited Accounts

Under Section 201 of the Singapore Companies Act, the accounts which are presented at the AGM must not be dated older than 6 months from the date of the AGM for a private company/unlisted public company, or 4 months for a public listed company.

Annual Return

Under Section 197 of the Singapore Companies Act, the company is required to file its annual return with the Accounting and Corporate Regulatory Authority (ACRA) within one month after the AGM. For more information on filing of Annual Return in XBRL

Who Needs to File?

The law requires every company to hold its AGM and file its annual return every year. The Singapore Companies Act does not prescribe the minimum level of qualifications of the persons required to help the companies prepare the accounts.

Directors will have to decide the level of expertise required to help them with the preparation of accounts based on the complexity of the accounts. Directors should also be prepared to justify how the level of expertise falls within the purview of Section 157C of the Singapore Companies Act (i.e. provision on use of information and advice). Section 157C of the Singapore Companies Act accords directors with protection for reasonable reliance on information and advice from professionals and experts, provided that in so doing, the director acts in good faith, makes proper inquiry if the circumstances warrant, and has no knowledge that his reliance on such information or advice is unwarranted.

Singapore Business/Company Information by Rikvin
Singapore company setup with Employment Pass and Singapore Company Registration – Learn more visit http://www.rikvin.com

A Singapore Property tax is a tax levied on properties in Singapore. This includes all types of properties such as HDB flats, factories, offices and vacant land. If you or your business owns property, you are liable to pay property tax.

The amount of property tax you have to pay per year is a percentage of the Annual Value of the property which you own. The Annual Value is the estimated yearly rent the property can fetch if it were rented out. The tax rate for owner-occupied residential property is 4% per year. The tax rate for all other properties is 10%.

Property taxes must be paid by 31st January each year. The Inland Revenue Authority of Singapore (IRAS) will compute the annual tax you need to pay and send you the bill in December. Instructions on how to pay property tax are also included in your bill.

Rebates, Relief, Refunds
In order to help keep taxes affordable, encourage certain types of land development and meet business needs, the Government gives out rebates, reliefs and refunds to property owners. For example, if your property has been continuously vacant for at least 30 days or 1 calendar month because of repairs or the inability to find a tenant, you can claim for a refund of property tax for that period.

Property Tax Exemptions
A building is only exempt from property tax if it is used exclusively:

· as a public place of worship

· as a public school

· for charitable purposes

· for purposes that promote the social development of Singapore

Singapore Tax Article by Rikvin

Want to incorporate a business in Singapore or Employment Pass Singapore needs. Learn more visit http://www.rikvin.com

What is Withholding Tax

Withholding tax is levied on payments made to non-residents including employees, business partners and overseas agents.

A non-resident is liable to pay income tax on Singapore-sourced income. Under the law, a person has a legal obligation to withhold a percentage of the payment when he makes payments of a specified nature under the Singapore Income Tax Act to a non-resident. In the event that you make payments of a specified nature to a non-resident, you must withhold a certain percentage of that payment known as Withholding Tax.

The types of payments that are subject to withholding tax are as follows:

1. Any payment listed under §45 of the Singapore Income Tax Act.

2. Types of payment include:

o payment of commission fees to overseas agents

o payment of director’s fees to non-resident directors

o payment of professional fees to offshore accountants

You must pay the withholding tax by the 15th of the month following the date of payment.

Withholding Tax Amount
The amount of withholding tax you have to pay depends on the type of payment you make and to whom you pay.

· For management, technical and other service fees paid to a non-resident company, the withholding tax rate is the same as corporate tax rate, which is 17% for 2010.

· For payments made to non-resident individuals, tax is to be withheld at 20% of the gross payment.

· For time charter fees, voyage charter fees and bareboat charter fees, the withholding tax rate is 1% – 3%.

· For other types of payments, the withholding tax rate is 10% or 15%.

· Where a double tax agreement is applicable, the rates specified in the agreements of the respective countries would apply.

Singapore Tax Information by Rikvin Pte Ltd
Singapore company setup with Employment Pass and Singapore Company Incorporation Service
Learn more visit http://www.rikvin.com

Playing casino and other gambling games is a fun experience more so at the United States which is considered to be a gambling hot spot. This is because the amount of the casino winnings at the United States is very lucrative compared to other countries. But many people are unaware, that about one third of amount won in jackpots and games go as tax to the government. In the US you will be taxed 30% on your winning amount and it is by the law to withhold 30% of the winning.

However, after certain period of time you can claim for refund of the tax amount so paid. Claiming for casino tax refunds depends on your country of origin. Certain steps can be followed for this purpose.

· Keep a track of all your winnings, amounts etc. as these are required in case of claiming the refund. Maintaining a track will help you to understand how much refund are you supposed to get back. This can be kept in the form of a receipt, ticket, record or statement.

· If you have won the game and want to claim for the casino tax refund, then you should contact a professional casino refund service. A reputed and a professional casino refund service can guide you through all the procedures for claiming the refund. Such professionals are aware of all the forms required and most importantly they know the tax laws of US as well as of your country of origin.

· If you are from a country like Canada then you may not be refunded the full amount because of a tax treaty signed between Canada and the US. But a professional casino refund service can get you the maximum amount of your refund. and if you belong to any of the countries like Czech Republic, Germany, Denmark, Ukraine, South Africa, Tunisia, Slovenia, Slovak Republic and likewise, then you will be getting the full amount of your refund. The citizens of these countries can set off their game losses with the winnings and can claim for tax refunds too without any difficulties. This comes as a benefit for the winners of the treaty countries and states.

· The main documents that would be needed to claim for casino tax refund are your driving license or passport. The voter’s registration or birth certificate can also be submitted to validate your identity. Also remember to mention your tax id in the USA. Other related documents can be guided by the casino refund services itself.

· You can file for a casino tax refund within three years of winning. So if you have not thought about getting any money back and the three year period has not lapsed, you can still apply for refund claim.

· In case you have US ITIN number then the claim takes about nine weeks to get settled. But in case, you do not possess the number, the refund of tax may take a little longer, about twelve to fifteen weeks.

· There are many companies in the World Wide Web which offer casino tax recovery services. All you will have to do is mention your ITIN (if you have) and give proof of your identity. Even if you do not have the number, the refund companies will work independently in helping you get your share.

Thus, whether you have won from tournament games, bingo, slot machines, keno, dog or horse wagering and paid the mandatory tax to the IRS, you can claim for a refund. Now you have more reasons to play, win and celebrate!

June Carlson is a member of the Better Business Bureau and an IRS authorized Certifying Acceptance Agent, providing U.S.A. If you have wanted to get <a href=http://www.casinotaxrebate.com/apply_now.html>casino tax refund</a>, you can contact with him at <a href=http://www.casinotaxrebate.com/>www.casinotaxrebate.com</a>.

This guide provides an overview of Singapore’s personal income tax rates, taxable income, capital gains tax and income tax returns filing.

Taxable Income
Any income that is accrued in Singapore by a person or business is subject to income tax. This means that if a customer pays you for your product & services in Singapore, or if you receive money in Singapore from your overseas sales, the money is subject to tax. Taxable income includes: income from your business, salary from employment, interest earned on your deposits and rental income.

Taxation for Foreigners Working in Singapore

Foreign employees working in Singapore either on work permit or employment pass will be taxed as above in Singapore unless:

· The person is on short-term employment no exceeding 60 days in a calendar year

· his/her earnings are exempt from tax under the Avoidance of Double Taxation Agreement

As a tax resident, you will be taxed on all personal income derived in Singapore.
When a foreign employee stops his term of employment in Singapore, his employer is required to inform IRAS before the termination of employment or departure from Singapore. The employer shall also withhold whatever money due to the employee until tax clearance is given.

Central Provident Fund (CPF)
Foreigners on work pass are exempt from CPF contributions in Singapore.

Capital Gains Tax
Capital gains or investment income is not subject to tax. For example, if you buy and sell shares at a profit in Singapore, the profit is not subject to tax. However, the dividends that you earn from the shares is considered an income and thus subject to tax.

Personal Income Tax Rates
The tax rates for YA 2007 and onwards are shown below. Singapore personal income tax are charged progressively (0% – 20%), based on your chargeable income. The chargeable income is your income plus any other personal income, minus all deductions, relief’s and rebates.

Income Tax Returns Filing
It is required that all completed income tax returns forms must be submitted to the Singapore Tax Department by the 15th of April each year. You do not necessarily have to pay your income tax if your annual income is less than S$ 22,000, unless you have been specifically instructed by the Singapore tax department to submit your tax return.

Singapore Tax Article by Rikvin
Singapore Company Registration or Apply for a Singapore Entrepass?
Visit http://www.rikvin.com to learn more

What is a Tax Resident

A company is considered as a resident in Singapore if the control and management of the business is exercised in Singapore. Although the term “control and management” is not defined explicitly by authorities, a generally accepted consensus is that it refers to the policy level decision making at the level of board of directors and not the day-to-day decision making and operations.

What is a Non-resident

A company is considered non-resident in Singapore if the directors manage and control the business and hold board meetings from outside Singapore. This is true even if, for example, the lower level operations are taking place in Singapore. A company’s residence may change from one year of assessment to the next depending on the circumstances. A Singapore branch office of a foreign company is generally not treated as a Singapore tax resident since the control and management is vested with an overseas parent company.

Basis of Taxation
The basis of taxation for a resident company and non-resident company is generally the same with the exception of certain benefits that are available to resident companies.

These include:

· A Singapore resident company is eligible for tax exemption scheme available for new start-up companies.

· A Singapore resident company can enjoy tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income under section 13(8) of the Income Tax Act.

· A Singapore resident company is entitled to benefits conferred under the Avoidance of Double Taxation Agreements (DTA) that Singapore has concluded with treaty countries.

A Singapore resident company is only taxed on Singapore-sourced income and foreign income which is remitted to Singapore, whereas a non-resident Singapore company would have to pay tax only on Singapore-sourced income.

Singapore Tax Information by Rikvin Pte Ltd
Singapore Company Registration Service and Employment Pass Singapore needs? Learn more visit http://www.rikvin.com

There are many benefits to establishing a company and, more importantly, to be considered a tax resident in Singapore. Singapore, with its sophisticated business infrastructure, has comparatively much lower tax rates than many contemporary developed countries. It has also a large tax treaty network which provides tax reliefs and double taxation of income. It is, hence, an attractive place for foreign investors with investments in the Asia Pacific region, or simply using it as a spring board to expand in that region. Other significant benefits include tax exemption on foreign-sourced dividends, foreign branch profits, and foreign-sourced service income and tax exemption scheme for new start-up companies.

How is Tax Residence Status Determined?

Considering the tax benefits, it is no small matter to obtain a tax residence status. So how does Inland Revenue Authority of Singapore (IRAS) determine tax residence status? In accordance with the Singapore Income Tax Act, the tax residence status of a company is determined based on where the ‘control and management of its business is exercised.’ A company is tax resident in Singapore if the control and management of its business is exercised in Singapore. Consequently, a Singapore branch office of a foreign company is not deemed a tax resident since the ‘control and management’ of its business’ is commissioned by the parent company outside Singapore.

‘Control and Management’

A company incorporated in Singapore is required to draw up a Memorandum and Articles of Association during its incorporation process. The Articles of Association outlines the company’s rules governing the relationship between the directors and shareholders of the company, the organizational structure and the roles of the directors in managing the operations of the company (together with the Memorandum of Association, the Articles of Association constitute the constitution of a company). Determination of tax residence status will be evident if the key decision-making, institution of policies and central management of the company are exercised in Singapore. Company activities in Singapore that include financial management of expenditure and banking, declaration of dividends, appointments of management executives, authorization to use the company’s seal or the ability to call shareholders’ meetings and etc are good indicators of ‘control and management’ within the jurisdiction.

Approving Tax Residence Status

Although IRAS, apart from citation of the Income Tax Act, has no criteria outlined for determination of the tax residence status; however, it is circumspect in examining each application for the Certificate of Residency (COR). A company that applies for a COR has to provide supportive evidence to show that the ‘control and management’ is in place in Singapore for the year that precedes the year of assessment. IRAS examines the status each year to determine eligibility of status. Approval for tax residence status is, therefore, short-lived as It is necessary to prove the ‘control and management’ is exercised the following years.

Companies that are newly incorporated and with 50% foreign ownership, individual or company, are often subject to a closer scrutiny. And this is more so for investment holding companies with no active business activities. Oftentimes, further documentation is required to claim the tax residence status. IRAS can request for Directors’ Report, business plan and a detailed description of roles and responsibilities of the directors. It is, therefore, imperative to keep proper and adequate records of all board meetings. The role of a company or corporate secretary becomes necessarily more important, which should not be overlooked.

With investment opportunities more globalized investors seek for new marketplace and more favorable tax benefits outside of their countries or regions. Even though it has a pro-business policy, Singapore is more conscious than ever that its tax benefits are not liable to abuse. It’s wide tax treaty network signifies greater responsibilities in adjudicating the tax residence status prudently. This will ensure, not only greater benefits for all investors, but also Singapore’s reputation as one of the key players in the global financial community.

Rikvin is here to cater to the business needs of overseas entrepreneurs who wish to expand their operations in Singapore, from company incorporation, to accounting , bookkeeping and other business solutions. We specializes in providing <a href="http://www.rikvin.com">Singapore Company Incorporation</a>
For more info, you can visit our website at http://www.rikvin.com

Rikvin Consultancy Pte Ltd
20 Cecil St. #14-01 Equity Plaza, Singapore 049705
Contact Us at +65 6438 8887

Taxes are everyone’s Big Annual Headache. It’s a little easier for salaried people, a little tougher for people with fluctuating incomes, but all in all it’s one right mess. In the end, however, people always end up feeling a bit better when the tax return reaches their bank account.

What are the ways you have to minimize expenses to Uncle Sam for the next financial year?

• Invest in a retirement plan. Investing in a retirement plan has twofold benefits. First of all, you have something set by for when you are old and/or in desperate need. Secondly, the money invested in a 401k is deducted from your gross taxable income. This means that the taxes you pay are lower.

• Keep tabs of processing fees. Bank processing fees, PayPal fees and such expenses are tax-deductible. Keeping track of them will reduce your taxable income even further.

• Invest in medical insurance. Medical insurance is fully tax-deductible for individuals, and may be partly deductible if you are part of a group plan.

• Buy a home. Yes, the recession is nearly over. Still, land and real estate prices have not yet reached the highs of 2007 and before. To top it off, the sum you spend on your housing loan is tax deductible. Enough reason to buy that home you’ve been putting off? Thought so!

• Contribute to charity. Donations to charity will also decrease your taxable income, provided that the institutions are part of the list of eligible institutions.

• Indulge in a hobby. Hobby expenses are tax deductible, up to the amount of money you gain from that hobby. For example, if you invest $100 in plants, and then sell seedlings for $150, you are still eligible for a $100 tax deduction.

• Spend a holiday in Vegas. The amount of money you lose in gambling, less than or equal to your winnings, will be tax deductible. As with the “hobby expenses” rule, if you lose $100 and win $150, you get a $100 tax deduction. One word of warning, though: this is probably going to cost you more than it’ll save in taxes.

• Sell off your badly performing assets. Capital losses can be claimed as a tax deduction. So if you have had a lot of capital gains this financial year, you will have some losses to offset them.

• File jointly. A married couple filing jointly is liable to much lower taxes than married couples filing separately or individuals.

• Know the deductions you are eligible for. Very often, people end up paying much more than they need to, just because they do not know the deductions for which they are eligible. Reading up the latest tax rules and amendments will help you identify areas in which you can claim deductions, so you can save the receipts and invoices required to make the claim. Otherwise, you can hire a good CPA – whose fees will also be tax deductible – and get them to file your taxes.

Taxes accumulate all year round, though they get paid only once a year. Rather than getting caught in a quagmire when the time rolls around, stay aware and start preparing right now.

Visit Peterborough Accountants or Edinburgh Accountants to learn more about tax matters.