Any kind of business whether local or foreign that intends to supply services and goods in Singapore and wants that their supply will exceed S$1 million every year must register with the Inland Revenue Government bodies for GST.
GST also known as Services and goods Tax is a broad based tax on the supply of products and services in Singapore. gst full form india
As a foreign company who wishes to source goods and services in singapore, the authorities provides two alternatives, the initially which is under section 33(1) known as Section 33(1) agent. The international company has to store with the authorities for the purposes of GST. It also needs to have a local person or body under 33(1) that acts on the international company behalf on all GST matters. This 33(1) agent is in charge of the accounting and payment of GST.
The position of the S33(1)agent is such that it becomes in charge of all matters of repayment and liabilities of the other company. In importance it represent the overseas company as such that the 33(1) agent and the foreign company are one and the same. This will mean that should the foreign company not be able to pay for its GST duty liabilities for any reason, the local agent becomes accountable for the payment. In this situation, the offshore company offers the goods locally and collects the GST that has to be payed to the authorities. What control will the 33(1) agent has over the transactions? For that reason only the brave would venture to offer themselves as a piece 33(1) agent.
Another alternative, is the section 33(2) agent, where the overseas company does indeed not need to store for GST but it appoints an agent under this section. The section 33(2) agents then functions as the key and all goods imported or purchased are in his “hands”. The section 33(2) agent then supplies the goods and account for the GST. With this scenario, the S33(2) agents has “control” over the transactions.
As a result it is straightforward to understand why there is very little information on section 33(1) agent.
At the end of the day, the tax authorities are concerned with collecting taxes due to them and there must be some one who is accountable. Therefore the individual who act as the agent under section 33(1) and 33(2) is effectively the accountable get together even though they may have no control over your bank account.
Sandhurst Agency Pte Ltd is a Singapore based accounting organization that gives advice and assistance to prospects interested to established up a business in Singapore. Sandhurst Consultancy Pte Ltd provides advice and guidance to those interested to include a company in Singapore. Furthermore Sandhurst Agency also provides accounting and tax advice, corporate secretarial services and migration services.