Monthly & quarterly Government reporting in 2023
Since 2003 and in every country on the planet, Healy Consultants Group assists multi-national Clients’ to timely accurately and completely discharge their monthly and quarterly and mid-year Government reporting obligations, including payroll and sales tax. Our in-house Accounting and Tax Department prepared this web page to help our Clients’ understand how we can help you with these statutory reporting obligations:
GST or VAT reportingIn most countries on the planet, our Client must apply to the Government for a sales tax number. In different countries, the sales tax may have different names. For example, in Singapore it is known as a GST number and in Australia it is called a BAS. In the EU and the Middle East, the tax number is known as VAT. Immediately after a company is register for sales tax, our Clients’ subsidiary has the following obligations:
Monthly & quarterly Government reporting How we can help? When? Depending on the country, our Client has a statutory obligation to apply for a sales tax number i) immediately after company incorporation or ii) when the local company becomes active or iii) when sales exceed a statutory threshold. Forever after sales tax registration, this sales tax number must be placed on the company sales invoices issued to local and international customers;
- Our in-house Accounting and Tax Department will help you determine when your Firm is require to apply for a sales tax number.
- When absolutely necessary, Healy Consultants Group will apply for a sales tax number for our Clients' subsidiary. In most countries, it takes four weeks for the Government to approve this tax number;
- As always and where possible, Healy Consultants Group will assist our multi-national Clients' secure a legal exemption from tax registration.
During company incorporation Once your Firm is registered for sales tax and depending on the country, our Client usually has a statutory obligation to submit monthly or quarterly sales tax reports, regardless of whether the entity is dormant or active. For example, this is a statutory requirement in Korea and Mexico and France for sales tax-registered businesses; and,
- Our in-house Accounting and Tax Department will prepare and submit monthly & quarterly Government reporting of sales taxes;
- Where possible, Healy Consultants Group will assist our multi-national Clients' secure a legal exemption from this monthly reporting obligation.
After company incorporation In some countries, non-resident entities do not have to register for local VAT or GST. For example, Singaporean offshore companies are usually legally tax exempt of GST and neither need to register for GST nor submit quarterly reports to IRAS. Similarly, a non-resident Irish LLC does not need to register for VAT if i) the entity does not have a local permanent establishment nor ii) has customers nor Suppliers in Ireland nor iii) has a local office and employees;
- During company incorporation, our Staff will help your Firm determine if your local subsidiary needs to register for sales tax.
During company incorporation In many countries around the world, sales to international customers are legally tax exempt of sales tax, also known as zero rated sales or supplies;
- Communicate with our in-house Accounting and Tax Department, to help you determine which sales are subject to sales tax and which sales are legally tax exempt.
After company incorporation
Monthly payroll reportingIn every country on the planet, hiring local employees triggers monthly and / or quarterly employee and employer filing obligations including i) government statistics and ii) social contributions and iii) employees unions and iv) personal income tax and so on. As usual, our in-house Accounting and Tax Department will be happy to assist your Firm with those statutory obligations.
Monthly & quarterly Government reporting How we can help? When? Depending on the country, the company needs to apply for an employer identification number. For example, this is a statutory obligation in Australia and the USA and Brazil. In most countries on the planet, dormant inactive companies receive an exemption from this statutory obligation;
- When absolutely necessary, Healy Consultants Group will apply for this employer number for our Clients' subsidiary. In most countries, it takes four weeks for the Government to approve this identification number;
- As always and where possible, Healy Consultants Group will assist our multi-national Clients' secure a legal exemption from this registration;
During company incorporation The majority of countries in the world impose monthly & quarterly Government reporting including social contributions, life insurance and pension contributions. Examples of such statutory filings include i) CPF in Singapore and ii) Superannuation in Australia and iii) Form E filing (annual) in Malaysia. In most countries on the planet, dormant inactive companies receive an exemption from this statutory obligation;
- Healy Consultants Group will assist our Client to timely accurately and completely discharge this statutory reporting obligation;
- Where possible, Healy Consultants Group will assist our multi-national Clients' secure a legal exemption from this registration;
After company incorporation In most countries, our multi-national Clients' have additional payroll requirements including i) issuing monthly pay slips and ii) providing employee insurance iii) maintaining proper bookkeeping of HR related records such as medical leave and annual leave records iv) document in house HR policies and procedures records and v) drafting employment contracts and vi) and so on;
- Healy Consultants Group will be happy to supply administrative support including drafting employment contracts and Government statistic reporting;
After company incorporation
Withholding tax reportingIn most countries on the planet, there is a requirement to submit a statutory withholding tax report to the local Government, together with a cheque for the withholding tax deducted at source. This statutory report details outgoing funds transfers to overseas shareholders or directors or group entities, particularly relating to i) dividends to shareholders and ii) IP and Head Office expenses and iii) directors fees and iv) professional services fees and v) interest payments and vi) so on. Healy Consultants Group in-house Accounting and Tax Department will help you determine if your subsidiary has annual statutory withholding tax obligations including:
Monthly & quarterly Government reporting How we can help? When? In many countries around the world, payments to overseas companies suffer withholding tax. For example, the Singapore IRAS needs to receive Form S45 detailing overseas payments (such as dividends, royalties, interest). Similar practice applies in India (to file forms 15CA and 15CB), Australia (NAT 7187) and majority of other countries.
- Healy Consultants Group in-house Accounting and Tax Department assist multi-national Clients' to legally minimize country withholding tax. It is important to determine if your subsidiary is a tax resident entity with double taxation treaty access. Refer to this to view an example;
- Usually non-resident entities suffer 30% withholding tax and cannot benefit from double taxation treaty benefits. As always, there are exceptions, e.g. the UK and USA and other Commonwealth countries;
Before annual financial statements are prepared In some countries, your customers must deduct withholding tax from overseas payments. For example, India has notoriously punitive withholding tax regulations;
Most of time and in our professional experience, it is not necessary to suffer withholding tax, especially when the professional services are performed overseas. Because of a lack of understanding of local withholding tax rules, it is common for your customers to incorrectly withhold 30% tax and pay the net amount to your corporate bank account;
- As always and where possible, Healy Consultants Group will assist our multi-national Clients' aggressively and skillfully negotiate with your customer to make full overseas payments;
- Where possible, Healy Consultants Group will also assist our multi-national Clients' recover withholding tax already deducted and paid to the Government. Depending on the country, the recovery period can range from 2 months to 6 months;
Before or after payments occur In some countries on the planet, employers are required to withhold tax on i) salary payments to non-resident employees or ii) fees paid to non-resident directors. If properly structured, the entity can enjoy a legal exemption from this withholding tax;
- Our in-house Accounting and Tax Department will advise on the percentage of withholding tax (if any);
- As always and where possible, Healy Consultants Group will assist our multi-national Clients' aggressively and skillfully negotiate with the Government for a legal exemption from withholding tax;
Book-keeping supportIn every country, local companies must maintain proper accounting and tax records including i) invoices for every incoming and outgoing transaction and ii) bank statements and reconciliations and iii) the aging of account receivables and payables and iv) a trial balance and general ledger and a list of journal entries and v) payroll documents and vi) legal and compliance considerations. This statutory obligation ensures local companies vii) submit accurate and complete tax reporting and viii) prepare accurate and complete financial statements and ix) fulfill employer obligations.
Failure to maintain proper records is a criminal offence, usually resulting in Government fines. Refer to this web page to understand how Healy Consultants Group helps our multi-national Clients.
Quarterly corporation tax paymentsApproximately half of the countries on the planet require local companies to pay corporation tax in advance. For example, Singapore tax resident entities pay an estimate of corporation tax every March, before paying the final amount in November. The Philippines BIR requires quarterly payments using Form 1702Q. In China, a subsidiary is required to file provisional tax on a monthly basis! It is common for small companies to be unaware of this statutory obligation.
As always, Healy Consultants Group helps our multi-national Clients’ to timely accurately and completely calculate and pay corporation tax. As always, our goal is to legally minimize corporation tax and secure exemptions from monthly & quarterly Government reporting obligations.
FATCA and CRS reporting obligationsTo minimize international tax evasion, the majority of countries on the planet require the following disclosures:
Reporting Annual reporting obligations How we can help? FATCA Foreign Account Tax Compliance Act (FATCA) is a US government information-sharing regime designed to crack down on tax evasion by USA tax payers including i) foreign financial institutions and ii) US tax-resident individuals and companies. There is a statutory annual obligations to disclose details of foreign assets to the Inland Revenue Service (IRS) including:
- All foreign entities must disclose their FATCA status to financial institutions (both US and non-US based) when i) opening a bank account or ii) receiving passive US-sourced income;
- If a non-financial entity with a 10% stake held by US tax-resident individuals/entities opens a new bank account, the bank submits account information to the IRS annually;
- In case of a financial entity, the bank will provide account information to the IRS even if the US tax-resident individuals/entities hold a stake of less than 10% in the entity;
- When receiving passive income from US sources, all entities must provide their FATCA status to avoid being subject to a 30% withholding tax.
- All US tax-resident individuals must disclose details of their offshore bank accounts and assets to the IRS, if their cumulative value exceeds US$50,000;
- US citizens, green card holders and foreigners present in the US for 31 days in a calendar year, or 183 days in a consecutive three-year period (including the current year), must also disclose their details;
- Under FATCA rules, financial institutions, including depository institutions, custodial institutions and investment vehicles, must act as a withholding agent on behalf of the IRS. Our Clients wishing to set up these types of business and conduct business internationally must comply with the foreign entities criteria above;
- Institutions may register directly with the IRS or indirectly through their national governments. Institutions which refuse to comply face a penalty of 30% withholding on passive US-sourced income.
As always, Healy Consultants Group helps our multi-national Clients' understand their annual statutory obligations.
Our Staff complete the Government forms and email them to you for review and approval.
- The Common Reporting Standard (CRS) is the world’s largest-ever counter tax evasion initiative including the automatic exchange of information of the bank accounts and assets of non-resident individuals and companies. By the end of 2020 data on more than 47 million offshore accounts were reported to 90% of the Governments on the planet;
- Under the CRS, financial institutions (reporting entities) annually report financial information of their customers (individuals and entities, including partnerships and trusts) to their national tax authorities. The authorities collate data and exchange information with their counterparts in the jurisdiction where the customer is tax-resident. Information is exchanged on i) tax identification number(s) ii) bank account balances iii) investment income including dividends, interest payments an annuities; and iv) proceeds from the sale of financial assets;
Through the contact details below, communicate with our in-house Accounting and Tax Department if your Firm needs us to timely accurately and completely discharge your statutory obligations re monthly & quarterly Government reporting including payroll and sales tax.