Real Estate & Holding Companies Accounting & Tax in Singapore

Our services cater to two distinct but related groups:

• Real Estate Investors: Individuals and companies holding residential or commercial properties in Singapore for rental income or capital growth, including non-resident investors needing local management.
• International Holding Companies: Businesses that use a Singaporean Pte. Ltd. entity to hold shares in foreign subsidiaries (especially across APAC), intellectual property, or other global assets.
• Property Developers: Companies involved in the development and sale of residential or commercial projects in Singapore.
• Family Offices: High-net-worth families using a Singapore-based structure to manage their global wealth and investments.

From the moment of acquisition or incorporation, specialized accounting is essential. It becomes critical at these stages:

• Before Acquiring Property or Setting Up a Holding Structure: To advise on the optimal ownership structure to minimize taxes (like stamp duty) and liability.
• During Property Ownership: To track rental income, manage property taxes and maintenance fees, and account for all expenses to determine the true net yield.
• For Holding Companies: To document inter-company transactions, manage dividend flows, and ensure compliance with rules for tax exemptions on foreign-sourced dividends.
• At Year-End: To prepare financial statements required for Corporate Tax filing with IRAS and Annual Return filing with ACRA.
• When Selling an Asset: To accurately calculate any applicable capital gains tax (though Singapore has no general capital gains tax, certain property sales can be taxed as trading income) and manage stamp duties.

The cost of professional accounting reflects the expertise required to manage property portfolios or complex international holding structures.

• Small Real Estate Portfolio (1-3 properties): S$400 - S$900 per month for bookkeeping, reporting, and tax planning.
• Simple Holding Company: S$600 - S$1,500 per month to manage compliance, dividend resolutions, and basic reporting.
• Large Portfolios or Complex Holding Structures: Custom pricing from S$2,500+, involving consolidated reporting and strategic international tax advisory.

Investing in Singapore property or using a holding company structure without expert financial management carries significant risks:

• Tax Inefficiency: Failure to correctly structure a holding company can lead to the loss of tax exemptions on foreign dividends, resulting in double taxation.
• Incorrect Property Tax Filing: Not complying with IRAS requirements for property tax can lead to penalties. Similarly, incorrect payment of Buyer's or Seller's Stamp Duty is a major risk.
• ACRA Non-Compliance: Failure to file annual returns for the property-holding company can lead to fines and the company being struck off, potentially endangering the ownership of the asset.
• **Substance Issues:** For holding companies, a lack of demonstrable management and control in Singapore ("substance") can lead to challenges from foreign tax authorities, nullifying tax treaty benefits.

The legal and tax frameworks governing property and holding structures in Singapore are highly specialized. Outsourcing your accounting to YourLegal provides access to a team that understands these nuances. We ensure your property portfolio's finances are managed efficiently, maximizing your net yield after all taxes and expenses.

For holding companies, we provide the critical expertise to structure your entity and manage its affairs in a way that maintains its eligibility for Singapore's attractive tax exemptions and treaty benefits. By handling the complex financial administration and compliance, we allow you to focus on managing your assets and growing your global business from a stable, secure, and tax-efficient base in Singapore.