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Essential Supports for You Now In Progressive Business Options Now

As a director/major shareholder you are in a unique position to do business with your own bv. However, the parties have to deal with each other in a businesslike manner and agreements must be well-defined. Whoever observes the rules, can do attractive business with his ownBV. Investing in your own business premises

Pay attention! Investing from private or from the BV is treated differently for tax purposes. What is most advantageous in your situation, we can charge you.If you think now for the progressive business thinking then be sure that you will be able to have the best option now.

In the name of the company

The choice to maintain your own company premises from the company is also determined by the present business risks and your plans for the future. We often see that the business premises are isolated from the risks of the company. Especially if the property also serves as an investment object, for example for the investment of pension funds under own management. From the BV the property is then leased to the operating company.

Your Choice Now

If you choose to invest privately in a building and rent this private property to your BV, then the property falls under the provision of the scheme. The rental income, depreciation and operating expenses as well as book profits and losses on the property are part of your box 1 income. Please note: if you are married and the property belongs to the general or limited community of goods, then this box 1 income for 50/50 will be attributed to you and your spouse(s).

The Tax Works Now

For the amount of the tax deductible depreciation charges, you must take into account a limitation. This also applies if the BV, for example, keeps the business premises. Depreciation is no longer possible if the book value of the property has reached the floor value. This bottom value is in most cases 50% of the WOZ value of the building.

  • Every transaction between you and the company must be business-like. This also applies to the provision of money between the DGA and the BV. Think of a written loan agreement with at least a repayment schedule and a real interest rate. In addition, certainty must have been provided. In order to assess whether the agreement is business, you have to ask yourself whether you or the e.g. such a loan agreement would also have entered into with an independent third party.

Borrow money from your BV, you can do this in your capacity as an employee or as a shareholder. It is important to determine this in advance, because the tax consequences are different in both situations.

Pay attention! Prevent borrowing, for example, from financial problems. The BV must be able to continue to fulfill its (payment) obligations. This is even more important if the company also has a pension or stamp duty under its own management.

How to Choose Best Home Loan Policy

In theory, a home loan can be taken for anything. The main condition is that you leave your real estate as security for the bank.

In practice, the choice is, of course, limited. Not all banks issue loans to the latter and here comes the role of good money lender in Singapore. It should be remembered that usually apartments are purchased as second homes in property, because they cannot be registered – according to the law it is considered non-residential. But the apartments are distinguished by a lower price and the possibility of free redevelopment.

Home loans can be taken both for housing in a newly built house and a new building, and on a “secondary” market, that is, in a long-built house. In the first case, the apartment is sold by a construction company, in the second the private owner is the owner of the apartment.

What should you look for when choosing a home loan?

The key factors in choosing a home loan are the amount of the down payment, the rate and the term.

Interest rate

Best interest new home loan in Singapore depends on a number of factors, in different banks they can differ by several percentage points. It should be understood that a low rate on a home loan may imply a significant subsequent expenditure on additional commission on the loan, which are provided in the bank.

An initial fee

As a rule, a home loan assumes an initial contribution at the expense of the borrower’s own funds. Such a contribution can be from 10% to 30% of the value of the loan itself. If possible, you should make the largest possible contribution, as it will directly affect the annual interest rate offered to you by the bank and the amount of the monthly payment for the loan. Nevertheless, the initial payment should not “eat” all available funds at your disposal. It is necessary to take into account not only additional expenses, besides the initial payment and monthly payment, but also the fact that one should always have a “financial security pillow” in reserve – an amount equal to at least three home payments.

Ideally, it is worth taking such a home amount and for such a period that the monthly payment on the loan does not exceed 40% of the principal borrower’s income.

Term

Terms for home loans also vary, as a rule, from 5 to 30 years. However, the last estimated year of home repayment should end before the borrower’s (retirement) age. Some money lenders are ready to lend to citizens up to 75 years, but the rate on the loan in this case will be much higher, as well as the cost of life insurance.

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