The Singapore Ministry of Finance (MOF) continues to revise the Goods and Services Tax (GST) as a necessary and strategic decision to fund Singapore’s revenue needs. Announced during the Singapore Budget 2022, the changes that will take effect from January 2023 will see progressive changes to the applied tax rate, as well as an expansion in the scope of goods and services which are eligible for GST.
Financial services providers in Singapore will likewise be affected, with those importing services from offshore entities seeing the greatest impact. With the limited time until the rules take effect, financial institutions (FIs) need to ready themselves for the changes.
During the Singapore Budget 2022 annoucement, MOF announce that they will be introducing additional changes to the current GST structure. These changes are centred around:
For specific transitional guidelines, refer to the Inland Revenue Authority of Singapore’s (IRAS) guide, “2023 GST Rate Change: A Guide for GST-registered Businesses (Second Edition)”.1
FIs will need to assess the GST changes to determine the level of impact. The legal structures, technology in use, and client domiciles will affect the level of changes that FIs will need to make to ensure compliance.
Synpulse is working with top tier financial institutions to facilitate a smooth integration of the transition in the GST changes. In this capacity we have analysed client populations, legal entity structures, and booking models to prepare detailed impact assessments of the GST changes. Combining subject matter expertise with our end-to-end project delivery capabilities in developing bespoke solutions that best address the individual client's needs, we support our clients every step of the way.