Covenant Professional Services Pte. Ltd.

24/05/2026

Recent reports have highlighted a deeply concerning case in Singapore — an identity thief *forged an NRIC* and attempted to secure a *$2.9 million loan* using a victim's landed property as collateral, even filing a caveat under a false identity. A second victim faced a similarly brazen attempt involving a loan exceeding *$2 million*. Authorities including the *Police, SLA, and ACRA* are currently investigating these incidents.

These cases serve as a stark reminder that *identity fraud and due diligence failures* carry serious legal, financial, and reputational consequences — for individuals and businesses alike. Whether you are entering into a commercial transaction, onboarding a new director or shareholder, or conducting an acquisition, robust *verification and governance protocols* are no longer optional.

18/05/2026

Fraudsters may send emails asking you to review your tax status or file and pay taxes. These fraudulent emails often contain links to phishing sites, asking for credit card details or One-Time Passwords (OTPs).

Stay safe:
✅ Do not click on links or download attachments/programs
✅ Never disclose personal, internet banking details, or OTPs
✅ Check on tax matters via myTax portal at mytax.iras.gov.sg

Remember, IRAS only communicates confidential tax matters via myTax Portal. GIRO is the preferred payment mode; IRAS does not send emails with payment links.

26/02/2026

As announced at the Ministry of Finance Committee of Supply Debate 2026, to support business digitalisation and productivity, all GST-registered businesses will be required to onboard InvoiceNow and submit invoice data directly to the Inland Revenue Authority of Singapore (IRAS) via the InvoiceNow network. This will be rolled out progressively from Apr 2028 to Apr 2031.

To ease onboarding and encourage early adoption of InvoiceNow, the Government will introduce transitional funding - up to $1,000 for SMEs and up to $5,000 for larger businesses. SMEs can also tap on free InvoiceNow-Ready Solution options until Mar 2031. More details will be provided in due course.

All GST-registered businesses are encouraged to prepare early to ensure a smooth transition.

Learn more here 👉 go.gov.sg/iras-gst-invoicenow-requirement

At Covenant, we help businesses to setup Xero cloud-based accounting system that complies to the InvoiceNow requirements as well as to achieve the following benefits and objectives:

1) Improving staff productivity and efficiency while eliminating manual entry and reducing manual errors that come with using spreadsheets, giving you the peace of mind to focus on your day to day functions and other operations of the business.

2) Ensuring that your data runs in real time and you can access anywhere, anytime and any device and

3) Providing enhanced reliability and data security such as password protection and 2FA authentication for unlimited users that adhere to international standards

4) Providing a range of customised reports for management decision making and complying with local laws and regulations

5) Providing other functions such as emailing statements of accounts to customers, recurring invoices, bank reconciliation and many more benefits.

Contact us now for a consultation.

04/07/2025

The Companies and Limited Liability Partnerships (Miscellaneous Amendments) Act will come into effect on 16 June 2025. The Act introduces new requirements to enhance the transparency of companies and Limited Liability Partnerships (LLPs), and reaffirms Singapore’s commitment to combatting money laundering, terrorism financing and other threats to the integrity of the international financial system.

The key amendments are as follows:

Register of Controllers

1) All new companies (including foreign companies) and LLPs must maintain a Register of Controllers from incorporation.

2) Annual verification of controller information will be compulsory, with controllers required to provide signed and dated confirmation of information accuracy.

3) The timeline for updating controller particulars in the private Register of Controllers has been extended from 2 business days to 7 calendar days.

4) Register of Nominee Directors - Foreign companies must maintain a Register of Nominee Directors at their registered office or registered Corporate Service Provider's office.
ACRA Central Registers Filing Requirements

5) ACRA will maintain central registers of nominee directors and nominee shareholders.
Existing companies (including foreign companies) have until 31 December 2025 to submit information about their nominee directors and nominee shareholders.

6) New companies (including foreign companies) and LLPs incorporated from 16 June 2025 must submit controller and nominee information on the date of incorporation or registration

If you are interested to appoint a corporate service provider(CSP) to take care of your compliance with Companies Act, you can contact us at [email protected] for a free consultation.

04/07/2025

⚠️ Don’t fall for tax review scams!

Iras has received reports that a scam email with subject heading ‘Notice of Corporate Income Tax Filing Review’ is targeting companies and businesses. This is a phishing email scam where fraudsters have spoofed IRAS’ identity. The messages contain threats of enforcement actions and direct recipients to download attachments or click on a suspicious URL.

Members of the public are advised to ignore the phishing email and
- Do not download attachments or click on the link
- Access your tax notices securely by logging in to mytax.iras.gov.sg using your Singpass
- Check for suspicious email addresses that appear to be from IRAS

12/05/2025

Important updates from the new CSP Act 2025

9 May 2025

The CSP Act and CSP Regulations, which provide further details on the requirements under the CSP Act, will come into effect on 9 June 2025.

The key proposals are as follows:

1) All business entities carrying on a business of providing corporate services in and from Singapore need to register with ACRA as registered CSPs;

2) All registered CSPs will need to comply with obligations under the CSP Act and CSP Regulations, including those on anti-money laundering, countering the financing of the proliferation of weapons of mass destruction and terrorism financing (AML/ CFT/ PF obligations);

3) Persons acting as nominee directors by way of business will need to be arranged by registered CSPs, after they have been assessed as fit and proper by the registered CSPs; and

4) Increased Fines will be introduced for breaches of AML/ CFT / PF obligations by registered CSPs and their senior management.

Stay informed.

__________________________________________________

1 These corporate services include forming of corporations on behalf of other persons; acting or arranging for other persons to act as directors or nominee shareholders; providing registered office or business addresses; carrying out designated activities in relation to the provision of accounting services; and carrying out transactions with ACRA on behalf of other persons or as a secretary of a company by way of business.

14/03/2025

GST InvoiceNow Requirement – What SMEs Need to Know!

📢 IRAS has introduced the GST InvoiceNow Requirement! From 1 May 2025, all GST-registered businesses are required to transmit invoice data to IRAS using InvoiceNow-Ready Solutions via the Peppol network.

💡 Key Dates:
🔹 1 May 2025: Voluntary adoption encouraged.
🔹 1 Nov 2025: Mandatory for newly incorporated voluntary GST registrants.
🔹 1 Apr 2026: Mandatory for all new voluntary GST registrants.

✅ Why Adopt InvoiceNow?
✔ Automates invoicing, reducing manual errors.
✔ Ensures faster, secure, and standardized e-invoicing.
✔ Enhances compliance with GST reporting.

There are plans by IRAS to progressively extend to mandatory participation by new and existing GST registered businesses.

📌 Next Steps:
1️⃣ Check if your software is InvoiceNow-Ready via IMDA’s provider list.
2️⃣ Register for InvoiceNow with an Access Point Provider.
3️⃣ Enable & Test GST invoice transmission to IRAS.

🔗 Stay ahead & prepare early! Learn more: IRAS Website

19/02/2025

Prime Minister and Finance Minister Lawrence Wong delivered his Budget 2025 speech on 18 Feb 2025. Below is a summary of what the government has prepared for Singaporeans and Businesses in this fiscal year 2025.

20/01/2025

📢 Important CPF Updates Starting 1 Jan 2025! 📢

Dear Valued Clients,

The Singapore government has announced changes to CPF contribution rates and salary ceilings, effective 1 January 2025. Here's a quick summary:

✅ Increased CPF Contribution Rates for Senior Workers:

Ages 55 to 60: Employer rate up to 15.5%, Employee rate up to 17%.

Ages 60 to 65: Employer rate up to 12%, Employee rate remains 11.5%.

✅ Raised CPF Monthly Salary Ceiling:

Increased to $7,400 (from $6,300), with a gradual rise to $8,000 by 2026.

These updates are designed to strengthen retirement adequacy for senior workers but also come with increased compliance requirements for employers.

Feeling overwhelmed? Let us help!
At Covenant Professional Services, we specialize in:
📌 Accurate payroll and CPF computation
📌 Corporate secretarial services
📌 Bookkeeping and compliance

💼 Ensure your business stays compliant and focused on growth—leave the details to us!

📩 Contact us today for expert guidance and tailored solutions.
🌐 Visit us at: www.covenantprosvcs.com

Stay compliant, stay stress-free!
Covenant Professional Services – Your Trusted Compliance Partner

Accounting ServicesFocus on your business while we provide a quality accounting and book-keeping services to manage your books and compliance ?Read moreTaxation ServicesNeed a Tax Specialist to meet your compliance and advisory needs ?Find out moreCorporate Secretarial ServicesNeed a corporate secre...

15/01/2025

🚗 New IRAS Guidelines on the deductibility on the Reimbursement of Transport Expenses 🚗

The Inland Revenue Authority of Singapore (IRAS) has released updated guidelines on the tax treatment of reimbursed transport expenses. Here's a concise overview to keep your business compliant:

Key Highlights:

1️⃣ Deductibility Criteria: Transport expenses are deductible only if they meet specific conditions under the Income Tax Act.

2️⃣ Non-Deductible Expenses: Expenses related to private car use, even for business purposes, are not deductible.

3️⃣ Detailed Scenarios: The guidelines provide examples of various transport reimbursements and their deductibility status.

Common Scenarios:

1) Expenses for discharging official duties e.g.
a) Travelling from office to meet a client
b) Travelling between home and external venues for business meetings
c) Travelling from the place of the client to another client's place

Item 1 are deductible except for expenses related to the use of private car.

2) Mileage on private cars ie S-plated cars are strictly non-deductible even if it is incurred in the production of income

3) Expenses for overtime transport Allowance e.g.
a) Taxi trips
b) PHV services between home and office

Item 3 are deductible if it is meant for working beyond official working hours or working on off days on an ad-hoc basis and such payment policy is generally available to all staff.

4) Travel between home and office are not deductible as they are considered to be personal trips

5a) Trips made by home-based employee between home and external business venues
5b) ERP charges or mileages for business purposes
5c) Car park charges at airport when on business trips
5d) Car park charges for client meetings

Item 5 are deductible except for expenses related to the use of private car

6) Foreign registered cars used exclusively abroad e.g. rental cars in Malaysia : Deductible if used for business purposes.

Private car refers to
1) S-plated private cars
2) Business cars (e.g. Q-plated or RU-plated cars)

You may visit IRAS webpage at https://www.iras.gov.sg/taxes/corporate-income-tax/income-deductions-for-companies/business-expenses/tax-treatment-of-business-expenses-(m-r) for more details.

Why This Matters

Understanding these guidelines helps your company:

✔️ Avoid Non-Compliance Penalties

✔️ Optimize Tax Planning and Claims

✔️ Streamline Reimbursement Policies

Need Assistance?

Navigating tax updates can be complex, but we're here to simplify it for you! Covenant Professional Services specializes in tax compliance, corporate advisory, and more.

🌐 Visit: www.covenantprosvcs.com

📩 WhatsApp/Telegram: Reach out for a consultation today!

Stay informed. Stay compliant. Stay ahead.

Accounting ServicesFocus on your business while we provide a quality accounting and book-keeping services to manage your books and compliance ?Read moreTaxation ServicesNeed a Tax Specialist to meet your compliance and advisory needs ?Find out moreCorporate Secretarial ServicesNeed a corporate secre...