Business Encyclopedia

A

Accounting and Corporate Regulatory Authority (ACRA)
Audited Financial Statement
Annual General Meeting (AGM)
Annual Report (AR)
Articles of Association
Apostille

B

BizFile
Business Grants Portal
Business Profile

C

Central Provident Fund (CPF)
Certificate Of Residence (COR)
Common Reporting Standard
Common Seal
Companies Act (Cap. 50)
Company Constitution
Company Secretary
Company Stamp
CorpPass

D

Dependant’s Pass
Directors’ Resolution in Writing (DRIW)
Dividend
Dormant Company
Double Taxation Agreement (DTA)
Due Diligence

E

Electronic Register of Members (eROM)
Employment Pass (EP)
EntrePass
Enterprise Development Grant (EDG)
Estimated Chargeable Income (ECI)
Exempt Private Company (EPC)

F

Financial Year End (FYE)
Form C-S/ C
Form C-S (Lite)
Fund Accounting

G

Goods and Services Tax (GST)

H

Hedge Fund

I

Import/Export License
Income Tax
Initial Public Offering (IPO)
Inland Revenue Authority of Singapore (IRAS)
Intellectual Property Office of Singapore (IPOS)
Interim Dividend
IR21 Form

J

K

Know Your Customer (KYC)
Knowledge Capital

L

Letter of Consent (LOC)
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
Liquidation (Court Order/Compulsory)
Liquidation (Voluntary)
Long Term Visit Pass (LTVP)

M

Ministry of Manpower (MOM)
MTI

N

Nominee Director
Nominee Shareholder
National Registration Identity Card (NIRC)

O

P

Partnership
Personal Data Protection Act (PDPA)
Personalised Employment Pass (PEP)
Private limited company
Productivity Solutions Grant (PSG)
Permanent Resident (PR)

Q

Quickbook Accounting

R

Register of Charges
Register of Nominee Director
Register of Registrable Controllers (RORC)
Registered Office Address

S

S Pass
Share
Small Company
Sole Proprietor
Special Employment Credit
Sponsored Employment Pass
Striking Off

T

Trademark
Temporary Bridging Loan
Temporary Employment Credit (TEC)

U

UEN
Unaudited financial statement
Undischarged Bankrupt

V

Variable Capital Company (VCC)
Venture Capitalist (VC)

W

Wage Credit Scheme
Withholding Tax (Section 45)

X

XBRL
Xero

Y

Year of Assessment (YA)

Z

Zero Rated Supplies
Zero-rised Financial Statement

Dividend

Dividends are distributed to the shareholders as a reward for their investment. It has to be paid out of the company’s net profit and can be in the form of cash, stocks, or any other mode. As per Section 403 (2) of the Companies Act, if a dividend is paid when there are no profits, the director(s) or the chief executive officer(s) who wilfully paid or permitted to pay the dividends is guilty of a criminal offence.

Types of Dividends

There are two types of dividends:

  • Final Dividend – It is declared during the AGM and needs to be approved by the shareholders. The dividends are decided based on the actual annual profit after the financial statements are reported. Once declared, final dividends cannot be cancelled or reduced.
  • Interim Dividend – It is declared by the board of directors based on the interim profit of the company, which is before the AGM and the annual financial statements are released. While the company doesn’t need to honour this payment, it is wise for them to do so to maintain their reputation in the market and keep their investors happy.

 

A company is not bound to pay dividends to its shareholders and can use the profits for reinvestments or to mitigate any cash shortage. It is mandatory for a dividend declaration before the dividends are paid.

Dividends are non-taxable in Singapore as it follows a one-tier taxation system. As the company has already paid corporate taxes on the profit earned, the shareholders do not need to pay income tax on the same.