Major Exporter Scheme (MES)
The Major Exporter Scheme (MES) is a program administered by the Inland Revenue Authority of Singapore (IRAS) that helps businesses with significant import and export activities manage their cash flow. Under the MES, GST payment on imported non-dutiable goods is suspended, thereby easing the financial burden on companies that would otherwise have to pay the tax upfront and then claim a refund later.
Here's how the MES works:
Eligibility: Businesses must meet specific criteria to qualify for the MES, including having an annual import value of at least S$10 million and exporting at least 70% of their imported goods.
Benefits: MES-approved companies can import non-dutiable goods without paying GST at the point of entry. This improves their cash flow and makes them more competitive in the global market.
Conditions: There are certain conditions attached to the MES. For example, businesses must maintain proper records of their imports and exports, and they must use the imported goods for approved purposes.
Overall, the MES is a valuable tool for Singaporean businesses that engage in international trade. It can help to improve cash flow, reduce administrative burdens, and boost competitiveness.
Here are some additional details about the MES:
The scheme is available to both GST-registered and non-GST-registered businesses.
The application process for the MES is relatively straightforward.
IRAS provides guidance and support to businesses applying for and using the MES.
If you are a Singaporean business that imports and exports goods, learn more about the MES and consider whether it is right for your company. The IRAS website has a wealth of information about the scheme, and you can also contact IRAS directly for more assistance.
Bestar Accounting: Bridging the Gap for MES Companies in Singapore
Bestar can specifically address the accounting and compliance needs of MES companies in Singapore. Here's how we can be a valuable partner:
1. MES Application and Maintenance:
Eligibility Assessment: Bestar can guide businesses through the MES qualification criteria and assess their suitability for the scheme.
Application Preparation: We can handle the entire application process, ensuring all documentation and approvals are in place.
Post-Approval Compliance: Bestar can help maintain MES compliance through continuous record-keeping, reporting, and audits.
2. GST Optimization and Management:
Accurate GST Calculations: We can ensure accurate calculations of GST payable and refundable under the MES, optimizing cash flow and tax efficiency.
Integrated Systems: Bestar can integrate our tools with your accounting software for seamless data transfer and management of GST records.
Compliance Guidance: We can provide expert advice on navigating the complex GST regulations and requirements specific to the MES.
3. Financial Management and Reporting:
Cash Flow Projections: Bestar can create accurate cash flow projections considering the impact of the MES on import and export cycles.
Financial Reporting: We can prepare financial statements that adhere to the specific reporting requirements of MES companies.
Tax Planning and Optimization: Bestar can help identify tax-saving opportunities within the MES framework and develop effective tax planning strategies.
4. Additional Benefits:
Experienced Team: Our team of qualified accountants and certified tax professionals possesses in-depth knowledge of the MES and Singapore's tax regulations.
Technology-Driven Solutions: Bestar utilizes advanced accounting software and data analytics tools to ensure accuracy, efficiency, and real-time insights.
Cost-Effective Services: Our tailored services cater to the specific needs of MES companies, offering cost-effective solutions compared to in-house accounting teams.
In conclusion, Bestar can bridge the gap between Bestar's expertise and the accounting needs of MES companies. By combining their financial and tax knowledge with Bestar's solutions, MES companies can achieve:
Streamlined compliance and reporting processes
Optimized cash flow and tax efficiency
Access to expert guidance and support
Focus on core business operations with confidence
For MES companies in Singapore seeking a comprehensive solution for their accounting needs, Bestar offers a strong value proposition, enabling them to navigate the complexities of international trade with greater ease and profitability. Contact Bestar today!