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Group Relief



Group Relief


Group relief in Singapore is a tax relief system that allows companies within the same group to offset certain losses against the profits of other companies in the group. This essentially treats the group as a single entity for tax purposes, which can result in significant tax savings.


Here are the key features of group relief in Singapore:


  • Eligible companies: Only companies incorporated in Singapore and belonging to the same group are eligible for group relief.

  • Qualifying loss items: The following loss items can be transferred under group relief:

    • Current year unutilised capital allowances

    • Current year unutilised trade losses

    • Current year unutilised donations

  • Conditions: To qualify for group relief, companies must meet certain conditions, such as having at least a 75% ownership relationship between the claimant and transferor companies and having the same accounting year-end.

  • Claiming group relief: Group relief must be claimed by filing the relevant forms with the Inland Revenue Authority of Singapore (IRAS).


Benefits of group relief:


  • Reduced tax liability: Group relief can help companies reduce their overall tax liability by offsetting losses in one company against profits in another.

  • Improved cash flow: By reducing tax payments, group relief can improve a company's cash flow.

  • Greater flexibility: Group relief can give companies more flexibility in managing their tax affairs.


Things to consider:


  • Complexity: The group relief system can be complex, and it is important to seek professional advice to ensure that you are complying with all the rules and regulations.

  • Anti-avoidance rules: There are anti-avoidance rules in place to prevent companies from abusing the group relief system.


How Bestar can Help


What Bestar Can Offer:


  • Tax expertise: Bestar has tax professionals with experience in group relief who can advise you on the eligibility, requirements, and claiming process. We can help you determine if group relief is suitable for your company and identify any potential challenges.

  • Compliance assistance: Bestar can help you ensure you comply with all the rules and regulations surrounding group relief, including completing the necessary forms and filing them with the IRAS.

  • Tax planning: Bestar can help you develop a tax plan that optimizes your use of group relief and other tax benefits available to your company.


Contact Bestar today!

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