Covenant Professional Services Pte. Ltd.

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.

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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

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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...

16/12/2024

*IRAS has been alerted to scam calls impersonating IRAS officers.*

Beware if you receive calls where callers claim to be IRAS officers informing that you have outstanding taxes or that you need to attend an interview due to tax evasion involving unreported income. If you do not have any outstanding tax matters with IRAS, be alert to such calls as they could be scams.

Please note that IRAS officers will not ask you to provide any personal, credit card, or bank account details to make payment over the telephone. For tax matters, we will direct you to transact safely on myTax Portal (mytax.iras.gov.sg), where you can check if you have any outstanding taxes.

Visit https://go.gov.sg/iras-scam to learn how IRAS protects you from scams.

16/12/2024

Update on ACRA Bizfile

Longer time on filing and no imposition of late lodgement penalties announced by ACRA

Following the launch of our new Bizfile portal on 9 December 2024, some Bizfile users including CSPs have encountered system issues while attempting to file transactions. ACRA is working urgently to resolve the issues. They sincerely apologise for the inconvenience you may have experienced.

ACRA understand that business entities and CSPs are concerned with not being able to file annual returns and other transactions and some may have missed the deadlines as a result. ACRA will provide the following reliefs to affected business entities and CSPs who have difficulties lodging their statutory filings in the Bizfile portal:

All statutory filings such as annual returns, and ad hoc filings with due dates falling within the period from 9 Dec 2024 to 20 Dec 2024, will have up to 27 Dec 2024 to file. No late lodgement penalties will be imposed for filings made by 27 Dec 2024.

For assistance with filing certain time-sensitive and critical transactions, isplease contact your corporate service provider for help or ACRA Helpdesk at 6248 6028.

09/12/2024

📣 Exciting News from Covenant Professional Services!

🚀 ACRA is Getting a Fresh New Look Starting 9 December 2024!

The Accounting and Corporate Regulatory Authority (ACRA) is revamping its website to serve you better. Here’s what’s changing:

✨ Improved User Experience: Easier navigation with a clean, modern interface to find what you need faster.
📄 Streamlined Processes: Enhanced features to simplify business filings and compliance tasks.
📊 Upgraded Features: Better tools to manage your corporate compliance more efficiently.

Here's what is happening:

a) Phased rollout of Bizfile eServices

Some transactions are currently unavailable through standard eService web forms and must be filed using general lodgements. Processing times for these transactions may be longer than usual. We seek your understanding and patience during this transition period.

b) New download process for free information products

Corporate Service Providers (CSPs) who have lodged incorporations on behalf of their clients should ensure that the client is added to their Bizfile client list and obtain their endorsement. CSPs can only access the Free Product Download page to download the free Business Profile, after the client has endorsed their appointment.

c) Temporary unavailability of certain information products such as the Register of Members is currently unavailable for viewing or purchase. Extracts for transactions filed on or after 9 Dec 2024 are temporarily unavailable for purchase.

d) Implementation of 2-tier penalty framework for ad hoc lodgements

Effective 9 December 2024, the 2-tier penalty framework for ad hoc lodgements will take effect for all Singapore-incorporated companies, Variable Capital Companies (VCCs), Limited Liability Partnerships (LLPs), Limited Partnerships and businesses.

Under this new framework:

1) A $50 penalty applies for lodgements filed within the first 3 months after the due date.

2) A $200 penalty applies for lodgements filed more than 3 months after the due date.
This framework applies to ad hoc lodgements due on or after 9 December 2024. The existing 8-tier penalty framework remains in effect for ad hoc lodgements due before this date. The current 2-tier penalty framework for late annual lodgements remains unchanged.

ACRA seek your patience and understanding as they work through the initial issues.

At Covenant Professional Services, we’re ready to help you adapt to these exciting changes! Whether it’s navigating the updated platform or managing your Corporate Secretarial, Taxation, Valuation, Consulting, or Bookkeeping Services, we’re here to make it seamless for you.

💡 Need Guidance? Our team of experts is ready to assist you with:

Familiarizing yourself with the new ACRA platform.

Ensuring timely compliance with all regulatory requirements.

🔗 Get in Touch Today
📧 [email protected]
🌐 www.covenantprosvcs.com

Stay ahead with Covenant Professional Services – Your trusted partner in business compliance.

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...

07/12/2024

In today’s dynamic business environment, understanding the true value of your business is critical for strategic decision-making, whether you’re planning a merger, seeking investors, or simply evaluating your business performance. At Covenant Business Advisory Pte Ltd, we specialize in providing comprehensive and reliable business valuation services. Let’s explore the key methods used to value a business.

Types of Business Valuation Methods

1. Market Approach

This method compares your business to similar businesses that have been sold recently. It focuses on market multiples like revenue or EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). This approach works best when a robust market for comparable companies exists.

2. Income Approach

This approach focuses on the income-generating potential of a business. A popular method under this approach is the Discounted Cash Flow (DCF), which calculates the present value of expected future cash flows. It’s particularly suited for businesses with consistent revenue streams and growth potential.

3. Asset-Based / Cost Approach

This method values a business based on its assets, both tangible and intangible. It’s often used for companies in liquidation or loss making businesses or asset-heavy industries such as banks, focusing on either the book value or the market value of assets. This method normally produces the lowest value as compared to the other two methods.

4. Rule of Thumb Valuation

Common in certain industries, this method applies standard formulas or multiples specific to that industry. While simple, it should be used with caution as it doesn’t consider unique business factors.

5. Hybrid Approaches

Combining elements from multiple methods, hybrid approaches provide a more balanced valuation. For example, a business might be valued using a weighted average of market and income approaches.

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Why Choose Covenant Business Advisory Pte Ltd?

At Covenant Business Advisory Pte Ltd, we pride ourselves on delivering precise, tailored, and actionable business valuations. Here’s why we stand out:

1) Experienced Professionals: Our team comprises experts with a deep understanding of diverse industries and valuation techniques.

2) Client-Centric Approach: We listen to your needs, tailoring our services to meet your unique business goals.

3) Holistic Solutions: Beyond valuation, we offer advisory services to help you optimize your business operations and increase its value.

4) Integrity and Accuracy: We are committed to maintaining the highest standards of professionalism and confidentiality.

5) Comprehensive Reports: Our detailed valuation reports are designed to be clear, insightful, and compliant with regulatory standards.

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Let’s Start Unlocking Value Together

Discover the true potential of your business with a trusted partner. Whether you're preparing for a sale, raising capital, or simply understanding your company's worth, Covenant Business Advisory Pte Ltd is here to guide you every step of the way.

📞 Contact Us Today!

Email: [email protected]
Website: covenantprosvcs.com/home/services/valuation-of-businesses

Let us help you take your business to the next level. Partner with Covenant Business Advisory Pte Ltd for trusted, professional, and actionable insights.

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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...