Corporate Tax Planning

Why do so many Indian Startups register in Singapore? 👉🏼 Tax Saving for VCs The capital gains tax in India is 15-20%, and in Singapore is zero! As most VCs generate returns by selling shares in companies, it’s the capital gains they get taxed on and not business profits or dividends. This has a direct impact on their returns on the fund. The structuring requires coupling of several steps - such as setting up of a Trust in Mauritius that invests into startups, selling the shares, and transferring the money to their investors across the world. 👉🏼 Tax Savings on Profitable Companies The Corporate Tax rate in India is 25-28%, but in Singapore is ~17% only 👉🏼 Raising Capital from China If you raise money from Chinese investors, you have yo go for a special approval from the RBI in India. There’s no such requirement in Singapore 👉🏼 To Expand to SE Asian Markets If you decide to penetrate the South East Asia market with your product, such as to Malaysia, Thailand, Indonesia, then the investors focusing on those markets are headquartered in Singapore and a lot of times would require you to set up a SG HO and transfer the IP to the SG entity. 👉🏼 IP Protection Laws & Arbitration The Intellectual Property protection laws in Singapore are highly robust compared to India. Plus, most international agreements select Singapore as a place for Arbitration in case of disputes because of a more mature dispute settlement infrastructure. Plus, SG is in the top 5 of the world in ease of doing business. 👉🏼 Despite all of the above, why must you register in India instead - While SG has lower taxes on the face of it, if your primary business is in India, the Indian tax laws will force your investors to pay taxes in India even though they are foreign parties who have bought and sold shares of a Singapore entity - While it may seem like it’s easy to set up a SG company online, opening a bank account in SG from India is a massive pain - and you must only do this if you plan on operating an actual HQ from Singapore - You can transfer the intellectual property to Singapore on the insistence of your investors, but you’ll still have to keep your Indian entity to hire employees and run all operations. ********** Also, this is a contrarian view, but I like the vibe of Singapore much more than that of Dubai. #casarthakahuja #singapore #startups #fundraising #finance

We discussed a 𝐬𝐭𝐫𝐚𝐭𝐞𝐠𝐲 called Pass-Through Entity Taxes (PTET). This allows partnerships (1065) and S-corporations (1120S) to 𝐟𝐮𝐥𝐥𝐲 𝐝𝐞𝐝𝐮𝐜𝐭 state and local taxes (SALT), 𝐛𝐲𝐩𝐚𝐬𝐬𝐢𝐧𝐠 the $10,000 cap on Schedule A itemized deductions. Let's break it down with a practical example. Many people were confused and asked common questions that they are 𝐝𝐞𝐝𝐮𝐜𝐭𝐢𝐧𝐠 state and local taxes (SALT) on federal entity return as business expense already. Whereas I mentioned that SALT 𝐜𝐚𝐧'𝐭 𝐛𝐞 𝐝𝐞𝐝𝐮𝐜𝐭𝐞𝐝 on Forms 1065 or 1120S. Instead, they must be listed on Schedule A, which has a $10,000 capping. However, if they pay SALT at the business level as PTET, then only those can be deducted as a business expense. Let's clear this up. What are Pass-Through Entities? The entity which passes its income/loss to individual 1040 and pays taxes at individual level and 𝐧𝐨𝐭 at business level. Let's say a couple has an S-corporation (1120S) in 𝐈𝐥𝐥𝐢𝐧𝐨𝐢𝐬, and they are Illinois residents. The taxpayer works full-time for this S-corp and earns a net profit of $550,000, while the spouse earns $100,000 from a W-2 job. The $550,000 from the S-corp is passed through the K-1 form to their 1040, and they pay taxes on this income along with the spouse's W-2 income. The taxpayer files both a federal 1040 and an 𝐈𝐥𝐥𝐢𝐧𝐨𝐢𝐬 𝐈𝐋-𝟏𝟎𝟒𝟎 state tax return. Illinois taxes individuals at a 𝟒.𝟗𝟓% rate, so the taxpayer pays $27,225 ($550,000 * 4.95%) on the S-corp income to the 𝐬𝐭𝐚𝐭𝐞. This is considered as, "state income taxes paid by shareholders on their 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐫𝐞𝐭𝐮𝐫𝐧𝐬," which can 𝐨𝐧𝐥𝐲 be deducted on Schedule A as an itemized deduction, and up to the $10,000 cap. Here's where the confusion comes in: the law says that “a corporation or partnership can deduct state and local income taxes 𝐢𝐦𝐩𝐨𝐬𝐞𝐝 on the corporation or partnership as business expenses.” What does this mean? Simply put, if a corporation or partnership owns property in a state and pays property taxes on it, these taxes are considered to be imposed on the business. Therefore, they can be deducted as a business expense from their profit and loss on the federal tax return. To sum it all up: "SALT imposed on 𝐢𝐧𝐝𝐢𝐯𝐢𝐝𝐮𝐚𝐥𝐬 must be listed on 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝐀, with a $10,000 limit. Any taxes directly imposed on a 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 can be deducted as a 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐞𝐱𝐩𝐞𝐧𝐬𝐞 with no capping for federal tax purposes." Some states have found a way around the $10,000 cap. Instead of passing the income to the individual, who would then pay taxes with the $10,000 deduction cap, they allow the taxpayer to pay taxes at the entity level which would be considered imposing tax on business entity. In our example, this would mean paying $27,225 at the entity level, which is fully deductible as a business expense, thus bypassing the $10,000 cap. #cpa #uscpa #learning #taxstrategy #cpafirm #irs #ustax #ustaxation #taxsavings

Why Global Entrepreneurs Choose Singapore: The Ultimate Tax & Incentive Checklist (2025) If you’re advising clients on international expansion, Singapore is the cleanest, simplest, and most tax-efficient hub in Asia. 1️⃣ Corporate Tax Essentials Singapore’s headline Corporate Income Tax (CIT) is 17%, but most SMEs pay far less because of strong exemptions: Start-Up Tax Exemption (SUTE) — first 3 years: 75% exemption on the first SGD 100,000 + 50% on the next SGD 100,000 Partial Tax Exemption (PTE) — after Year 4 Single-Tier System: Dividends are 100% tax-free No Capital Gains Tax: Ideal for holding companies, exits, and group structuring Effective tax for many SMEs: 4%–8%. 2️⃣ GST / Indirect Taxes GST is 9% (2025) Registration mandatory above SGD 1M turnover 0% GST: Exports + qualifying international services Exempt: Financial services, residential property 3️⃣ Personal Income Tax (Founders & Employees) Progressive 0%–24% No capital gains, no inheritance tax Highly attractive for founders relocating HQs 4️⃣ Withholding Taxes (Cross-Border Payments) For payments to non-residents (common with Indian companies): Royalties: 10% Interest: 15% Technical/Professional Services: 17% (Eligible for relief under the India–Singapore DTA.) 5️⃣ Mandatory Compliance for Companies File Estimated Chargeable Income (ECI) within 3 months of FY-end File Corporate Tax Return (Form C-S/C) Maintain proper books for deductibility Transfer Pricing compliance for cross-border related-party transactions Annual ACRA filings: financials + annual return 6️⃣ Key Government Incentives (Massive Advantage for Startups & SMEs) PSG Grant: Up to 70% support for digital tools (Xero, QuickBooks, ERP, CRM) EDG Grant: Up to 50% support for expansion, process improvement, branding Startup SG Founder: Up to SGD 50,000 + mentorship PC & DEI Schemes: Reduced tax rates 5% or 10% for high-growth sectors R&D Deductions: Up to 250% 7️⃣ Why Global Clients Prefer Singapore Lowest effective tax rates in Asia No capital gains tax 80+ Double Tax Agreements including India Predictable tax rulings + strong regulatory stability Fast company incorporation (1–2 days) 100% foreign ownership allowed 💡 Consultant’s Tip (CA, CPA Insight) Founders often ask: “Is Singapore’s tax really 17%?” The better question is: “How do I structure things so my effective tax drops to 4%–8%?” What actually saves clients: • Using SUTE/PTE the right way • Structuring holding vs operating income for tax-free dividends • Smart GST planning before hitting the threshold • Keeping strong substance to avoid anti-avoidance issues #SingaporeTax #GlobalBusiness #InternationalTax #CorporateTaxPlanning #SingaporeIncentives #TaxStrategy #GlobalExpansion #BusinessStructure #CACommunity #CPAKnowledge #ForensicAccounting #StartupAdvisory #CrossBorderTax #GSTPlanning #AsiaBusiness

Most high-income professionals overpay in taxes not by a little, but by hundreds of thousands of dollars. And the worst part? Most of them don’t even realize it’s happening I recently worked with an executive who was unknowingly missing out on over $500,000 in potential tax savings. Like many high-income professionals, she assumed her CPA was handling everything. But here’s the problem: 🚫 Most CPAs think backwards, not forwards. They file taxes based on what already happened. 🚫 They don’t integrate financial planning, investments, and tax strategy. 🚫 Some of them miss opportunities that can save you money long-term. How We Fixed It & Saved Her Over $500K ✅ 1. The HSA Strategy – $20K+ in Lifetime Tax Savings She had access to an HSA (Health Savings Account) but wasn’t using it. Why does this matter? 👉🏾HSA contributions are tax-deductible. 👉🏾The money grows tax-free. 👉🏾Withdrawals for medical expenses are tax-free. By fully funding it every year, she’ll save $20,000+ in taxes over her lifetime. But here’s the kicker: we also helped her invest it properly so the account grows instead of just sitting in cash. ✅ 2. The Roth Conversion Strategy – $500K+ in Tax-Free Growth She was anticipating losing her job and had multiple old retirement accounts just sitting there. Instead of letting those accounts stagnate, we saw an opportunity: 👉🏾She was having a low-income year, which meant she could convert $100,000 into a Roth IRA at a lower tax rate. 👉🏾That $100K will now grow tax-free—meaning if it reaches $600K or $700K in retirement, she’ll never pay a cent in taxes on that money. ✅ 3. The Bonus Strategy – Tax-Loss Harvesting We also helped her offset investment gains using tax-loss harvesting, a strategy that allows you to sell underperforming investments and use the losses to reduce your tax bill. By combining these strategies, we helped her: 💰 Save $20K+ in taxes on HSA contributions 💰 Unlock $500K+ of future tax-free income through Roth conversions 💰 Offset capital gains and lower her tax bill through tax-loss harvesting And she almost missed out on all of this because she assumed her CPA was handling everything. If you’re making multiple six figures, but you aren’t actively planning your tax strategy, you’re leaving money on the table plain and simple. The best financial strategies aren’t about making more money they’re about keeping more of what you earn. If you want to see where you might be overpaying, shoot me a message. Let’s make sure you’re taking advantage of every opportunity. P.S See the look on my face…don’t make me have to give you that look because you’re paying more than your fair share in taxes. 😂

Think the new $40,000 SALT cap solved your tax problem? Think again. For high-income business owners, the real solution is still the Pass-Through Entity Tax (PTET). Here’s why PTET remains the smarter play even with the higher cap: 1)The $40K SALT cap phases out fast: If your income exceeds $500K (joint), the cap quickly shrinks, often back to the $10K minimum. For high earners, the benefit is minimal or nonexistent. 2) PTET stays fully deductible: The OBBBA did not touch PTET. State income tax paid at the entity level is still fully deductible on the federal return, and that benefit flows to owners regardless of itemizing. 3)Works even if you don’t itemize: Since PTET is deducted before income passes through, you get the federal benefit no matter what. 4)Predictability matters: The $40K cap is temporary (2025 to 2029). PTET remains steady and reliable for long-term planning. 5)State rules differ: PTET elections vary, so you must coordinate with your CPA and review annually. For most high-earning pass-through owners, PTET still delivers far more reliable savings than the new SALT cap ever will. 📌 Bottom line: The SALT expansion helps some, but for high earners with large state tax bills, PTET continues to be the stronger strategy.

As the ATO continues to utilise Director Penally Notices (DPNs) as their main debt collection tool, I keep seeing directors making basic mistakes that leave them exposed to personal liability unnecessarily. Here's a few quick reminders to help Directors limit their DPN risk: ⚠️ LODGE ON TIME (Even if you can't pay): The worst kind of DPN is a Lockdown DPN, that make a director personally liable for their Company's tax debts immediately. The only option to deal with a Lockdown DPN is to pay the tax debt in full. However, Lockdown DPNs are easily avoided by just lodging your BAS, IAS, and SGC statements on time.  I keep seeing directors unnecessarily exposing themselves and their personal assets to tax debts simply because they lodged late. ⚠️ KEEP YOUR ADDRESS UP TO DATE: The ATO issues a DPN to the address that a director has registered as their personal address on the ASIC company register. Not receiving a DPN is not a defence and I see directors miss out of taking action to avoid personal liability on a weekly basis because they did not receive a DPN because their address was wrong. Updating your address is quick an easy via the ASIC company portal and can mean the difference between protecting personal assets like the family home or having them available to the ATO to meet tax debts. ⚠️ DON'T DAWDLE: Ordinary DPNs give a director 21-days from the date of issue of the DPN to take action to avoid personal liability. With the way AusPost operates these days, directors can often have as little 14-days from the date they receive the notice to take action. We keep being contacted by directors seeking assistance or advice after their DPN has already expired.  directors need to be contacting an advisor as soon as they receive a DPN, it's not something that can be put off until later. ⚠️ ACTIVELY DEAL WITH TAX DEBTS: It can be tempting for directors to just deregister, or allow the ASIC to strike off, a company that has significant tax debts but little or no assets. However, a company being deregistered does not stop the ATO from issuing a DPN to the directors and when a company is deregistered the directors lose the opportunity to take steps to avoid personal liability without an urgent application to the Court to reinstate the company (which can be very expensive). I've seen several cases now where the Director of a deregistered company has received a DPN from the ATO and they have had to incur significant legal fees to mitigate the DPN within the 21-day timeframe. It would have been much cheaper to mitigate the risk at the front end by winding up the company properly. #insolvency #taxdebt #ATO #liquidation

Every small business owner should do this!! If you’re a small business owner and only think about taxes in March, you’re already losing money. High GST rates and fluctuating input costs mean that the way you plan your taxes can directly impact how much capital you keep and reinvest. Here are 5 things small business owners should focus on: → Your structure determines your tax liability. Like, LLPs are taxed at 30%, while Pvt Ltds pay 25% if turnover is under ₹400 crore. A proprietorship or partnership firm can be more efficient if cash flow is lean and compliance needs are low. → Section 32 allows depreciation deductions on assets like laptops, machinery, office furniture and even vehicles used for business. If you plan to upgrade equipment, time the purchase strategically before the financial year to get maximum depreciation. → Contributions to the National Pension Scheme under Sec 80CCD(1B) offer an additional ₹50,000 tax deduction beyond the ₹1.5 lakh under Sec 80C. If you run a Pvt Ltd or LLP and draw salary, you can set up EPF for yourself and employees. → Use tools like Zoho Books, QuickBooks India, Vyapar, or even Excel sheets with discipline. Most small businesses lose deductions not because they weren’t eligible, but because they had no records. Indian tax laws reward those who plan. In a small business, what you save is as powerful as what you earn. Which of these habits do you already have? #habits #moneymanagement #smallbusiness #tools

I sold my first company in 2020 for a life changing amount But I knew nothing about taxes and left money on the table Now that I'm running my second business, here are some personal finance things I now think about: • QSBS - Ensure your company is set up for QSBS as this allows you, your employees and your investors to pay no taxes on $10M each when you sell your company. • Your 83b Election - After you receive your equity, ensure you file an 83(b) election in the first 30 days and retain evidence of the submission. This could save millions in taxes! • Vesting - Make everyone vest equity, and longer than you think you need to. Standard vesting in 4 years & that's not enough to build a great company. But allow people 10-years post employment to buy their options. • Multiplying QSBS - Before raising a Series B, look into multiplying your QSBS exemption. QSBS is a $10M exemption per shareholder, but you can gift shares to family members or set up trusts to multiply it to $30, $40 or even $50M! • Secondaries - As the company does better, you may be tempted to pay yourself a very high salary. Don't do that - smaller secondaries (selling 1%-5%) every time you raise money is much more tax-efficient. • Exit Planning - Build the company like you're going to run it forever, otherwise you might just have to. Ironically, the best way to sell your business for a lot of money is to not be looking to sell your company. With that said, the hardest part is actually building a company that ends up being worth something... so that's where you should spend most of your time (vs optimizing your personal finances) Anything I'm missing? Leave a comment And if you like this type of content, I'm teaching a free workshop later this month on Personal Finance for Startup Founders: https://lnkd.in/e-3-meRG I'll send everyone who registers my free 2,500 word guide on optimizing QSBS!

Most Family Offices don’t lose wealth by making poor investment decisions—they lose it through inefficiencies. Taxes, fees, and outdated structures quietly erode returns, often without investors realizing it. The most sophisticated Family Offices have figured this out. Instead of focusing solely on higher returns, they prioritize something far more impactful: Structural Alpha. This isn’t about choosing the best hedge fund or private equity deal. Structural Alpha is about optimizing how investments are structured to maximize after-tax returns and eliminate inefficiencies. It’s a way to achieve stronger outcomes not by taking on additional risk but by being more strategic about how capital is deployed. A prime example is Private Placement Life Insurance (PPLI), a tax-efficient structure that allows Family Offices to significantly reduce the tax burden on investments like credit funds. Without it, returns on a credit strategy might shrink from ten percent to seven percent after taxes. With PPLI, those gains can be preserved for a fraction of the cost. Another example is tax-aware investing. Tax-loss harvesting extends far beyond its original application, allowing Family Offices to structure portfolios in a way that minimizes tax liabilities without compromising performance. For Family Offices, this isn’t just an advantage—it’s an essential approach to wealth management. Family Offices exist to preserve and grow generational wealth, yet many still operate within traditional investment frameworks that leave money on the table. By integrating Structural Alpha strategies, they can improve after-tax returns without taking on unnecessary risk, reduce compounding inefficiencies, and ensure long-term capital preservation through smarter structuring. The most forward-thinking Family Offices aren’t just searching for strong investments—they’re refining how they invest. Structural Alpha isn’t a trend; it’s a shift in approach that separates those who quietly optimize their wealth from those who unknowingly give a portion of it away.

The One Big Beautiful Bill Act... Changed several tax provisions effective for the current 2025 tax year. This isn't unprecedented. Most of the provisions effective in 2025 are extensions to make permanent existing provisions of the 2017 Tax Cuts and Jobs Act (TJCA) that has been set to expire at the end of this year. Still, a guide can be helpful. With that in mind... Key provisions effective for tax year 2025 include: 1️⃣ Current tax rates and brackets made permanent. The current rates are 10%, 12%, 22%, 24%, 32%, 35%, and 37%. There are slight changes to lower tax brackets to have more income fall into those brackets. 2️⃣ Increased standard deduction. The overall higher standard deduction was made permanent, along with the provision to adjust the deduction for inflation each year, and the amount was increased from $15,750 single/$31,500 joint for 2025. 3️⃣ Increased child tax credit. The current amount, which was increased in the 2017 TCJA to $2,200, is made permanent, with an inflation adjustment each year. 4️⃣ Qualified Business Income (QBI) deduction. This 20% QBI deduction was made permanent for some business owners and investors in REITS and other securities that generate QBI. 5️⃣ Qualified Opportunity Zones (QOZ). These were made permanent, with some changes, however, beginning in 2027, including restrictions on the definition of low-income communities qualifying as QOZs under the rule. 6️⃣ Itemized deduction changes. There were some changes to itemized deductions taking effect immediately (for 2025). These include making permanent for homes purchased after Dec 15, 2017 the $$750,000 indebtedness limit, new limit on overall itemized deductions that will impact those in the 37% tax bracket, and other items. Note: "Permanent" when it comes to tax, or any other laws for most practical purposes, means "until there are future bills or changes." Practically, it means that that the new bill removes the sunset dates (December 31, 2025) in existing in the 2017 One of our more popular resources recently has been our Tax and Retirement Reference Guide. We updated the guide to reflect changes per the #OneBigBeautifulBill (OBBB) Act. Here's a link to guide, with updates: https://lnkd.in/dHMz7688 #taxplanning #wealthmanagement