Tax on Apps

[richardelu]

Hello, I am new to this forum, and I have some questions hoping someone could clarify them.

Im in NS and have never work before, hence I have no idea about these tax stuff
I've a few FREE Apps on the appstore.
I put admob ads in these apps, and are generating revenue from them. Each month, google will pay me the revenue to my personal bank account. Over 99% of the audiences from the apps are not from Singapore, and they are all across the globe.

My questions are:
1) Do I have to register a company e.g sole proprietor, since I am having a steady stream of passive revenue each month?
2) Lets say I have 2 developer accounts posting 2 different apps. Do I have to register 2 companies?
3) Are these revenue from the apps taxable? How do I declare them since they are really passive.
4) Am I counted as self-employed?
5) Also, I understand registering a company require a physical address, in which I plan to use my house address. On writing to HDB, do I need my parents approval or such since the house is under their name?
6) If my apps are paid and not free, Im actually selling something. Is there a difference to what I need to declare or do legally?

I have read ACRA and IRAS but cant find concrete example to Apps.

I cant post image becos of insufficient post count, hence I will quote this from Google support website:

" Taxes in your country

Showing information for the following country:Singapore
Taxes or Value Added Tax (VAT) might be applicable to your business, depending on its location. Read on to see what applies in your country. If you'd like to see information for another country, click the drop-down menu above.

Google Asia Pacific Pte. Ltd.
Because your AdWords business contract is registered with Google Asia Pacific Pte. Ltd., local taxes aren't applied to your AdWords activity. These taxes won't be shown on your invoices."

It states that I do not have to pay tax? Did I interpret it correctly?

I really need help with this as I would not like to get into trouble with the law, and my revenue are getting big enough to pay taxes

 

[havetheveryfun]

how much are u earning from these apps? if less than 20k a year, don't need to worry so much.

just like some ppl who teach tuition on a part time basis also do not declare their tuition income if they are already holding a full time job.

if u really want to report the income because u are scared to get into trouble with the law, u don't have to care whether paid/free apps.... just declare how much income u are earning. e.g u have a free app, but earning 10k a year from ads from the app.. declare it as income.

anyway not an expert here so don't take my words as the holy grail.. best is still go and clarify with a IRAS representative or official

 

[richardelu]

how much are u earning from these apps? if less than 20k a year, don't need to worry so much.

just like some ppl who teach tuition on a part time basis also do not declare their tuition income if they are already holding a full time job.

if u really want to report the income because u are scared to get into trouble with the law, u don't have to care whether paid/free apps.... just declare how much income u are earning. e.g u have a free app, but earning 10k a year from ads from the app.. declare it as income.

anyway not an expert here so don't take my words as the holy grail.. best is still go and clarify with a IRAS representative or official

Hi its more than 20k a yr, thats why I wanna find out the correct procedure to do things right.

Do you think I have to register a proper company name?

Btw can I ask how does the income year works? Like is it jan-dec or?

 

[makav31i]

Hi its more than 20k a yr, thats why I wanna find out the correct procedure to do things right.

Do you think I have to register a proper company name?

Btw can I ask how does the income year works? Like is it jan-dec or?

My suggestion is to register a company preferably a Pte Ltd company...For taxes, it is the income earned for the previous year...If you are a company, you can deduct expenses from the income earned to reduce taxes...Do make use of the PIC claims to take advantage of the grants available for you to upgrade your computer hardware and software, printer and etc...

There is a grant for new startup that the first two years for the first $200k, you do not have to pay tax...That if I remember correctly...

 

[richardelu]

My suggestion is to register a company preferably a Pte Ltd company...For taxes, it is the income earned for the previous year...If you are a company, you can deduct expenses from the income earned to reduce taxes...Do make use of the PIC claims to take advantage of the grants available for you to upgrade your computer hardware and software, printer and etc...

There is a grant for new startup that the first two years for the first $200k, you do not have to pay tax...That if I remember correctly...

thanks for your reply, really appreciate it.

A quick question though, lets say my earnings for December is paid in late january, does that amount counts towards the previous year income tax or the next year?
Am I right to say that income tax calculates income earned from Jan-Dec each year, and then you have up to April next year to declare them officially?

 

[makav31i]

thanks for your reply, really appreciate it.

A quick question though, lets say my earnings for December is paid in late january, does that amount counts towards the previous year income tax or the next year?
Am I right to say that income tax calculates income earned from Jan-Dec each year, and then you have up to April next year to declare them officially?

company tax is determined by the company End of Financial Year...It can be on 31 Dec, 30 June or whatever date chosen by the company as the End of Financial Year...You have to file the company tax by the 26th of the month...

For revenue less than $5million, you won't need to hire an auditor...When in doubt, call IRAS to ask...

 

[havetheveryfun]

Hi its more than 20k a yr, thats why I wanna find out the correct procedure to do things right.

Do you think I have to register a proper company name?

Btw can I ask how does the income year works? Like is it jan-dec or?

if u don't mind losing out on the rebate n all that n paying a bit more tax, just declare it as self-employed income. straightforward n easier

 

[01asdf]

company tax is determined by the company End of Financial Year...It can be on 31 Dec, 30 June or whatever date chosen by the company as the End of Financial Year...You have to file the company tax by the 26th of the month...

For revenue less than $5million, you won't need to hire an auditor...When in doubt, call IRAS to ask...

Generally it will be taxed on date earned rather than paid. If you intend to set up a pte ltd it would probably be worth getting it done by an accounting firm who can help you clarify the records you need to keep and how to set things up to minimize any hassle.

Paying for a couple of hours' consultation upfront is cheaper than trying to rectify errors come tax return time.

 

[Soul77]

Do you mind telling what is the name of your apps?
Getting >20k yearly is considered very good.

 

[richardelu]

Thanks for all your reply.

I have this quick question over here.

When registering with ACRA for business, I'll have to declare a physical address. For my case, all I need is just a computer (in fact my own laptop at home) to code and press publish to publish app on the appstore. Hence I dont need a physical space for my business at all.

But I still have to provide a physical address, which is kinda weird -.-

The best solution for me is actually to write to HDB for Home Office Scheme and use my house address as business address right? Home address is acceptable for my case (publishing mobile app) right?

 

[makav31i]

Thanks for all your reply.

I have this quick question over here.

When registering with ACRA for business, I'll have to declare a physical address. For my case, all I need is just a computer (in fact my own laptop at home) to code and press publish to publish app on the appstore. Hence I dont need a physical space for my business at all.

But I still have to provide a physical address, which is kinda weird -.-

The best solution for me is actually to write to HDB for Home Office Scheme and use my house address as business address right? Home address is acceptable for my case (publishing mobile app) right?

you can put your home address as your biz address or you can pay for the virtual office address which cost depends on the location of the office...Other than company stamp, a business bank account and maybe namecard, you are good to go...

 

[mypluto]

Hi,

I also have a couple of free games in google play store.
Every month, the revenue earned from the games through advertisement will be transferred to my personal bank account. The advertisement companies are not located in Singapore. Thus, our revenue received is from overseas. As such, do I need to declare the income earned from the games in iras?

Thank you.

 

[mynickname]

Hi,

I also have a couple of free games in google play store.
Every month, the revenue earned from the games through advertisement will be transferred to my personal bank account. The advertisement companies are not located in Singapore. Thus, our revenue received is from overseas. As such, do I need to declare the income earned from the games in iras?

Thank you.

Yes.......

 

[Xiexie2]

This is very good for passive income

 

[mynickname]

You can just register income under your own name is you dont have any other income to declare. Tax planning wise cheaper to incorp a company provided you do all the work yourself.

 

[sg_investor]

Has TS figured that out yet?

 

[sg_investor]

How is it?
Going to need that knowledge for supplementary income.