Payment method for director
Being appointed company director , does not means you can withdrawn money from company bank account at anytime you want.
Payment for director is recognized as Company expense . And Company revenue will be affected after deduction of company expense.
So it is important to find out how to structure and plan for payment to directors.
There is no mandatory for the company to pay director and is up to management to decide when and how to pay.
Director remuneration
Is consider most common payment method to all appointed company director .
Director remuneration is based on signed agreed employment contract and it normally paid in monthly basic
Company will required to pay for CPF if the relevant direcotr is Singaporean or Singapore PR .
And foreign director is subject to withholding tax for the received remuneration amounts.
Director fees
Company can declare director fees at anytime.
If the declaration is within the financial year end date then approval from Extraordinary General Meeting (EGM) is required other than this is to be approve in Annual General Meeting (AGM ).
While director fees are allowed to be paid to certain directors, it does not necessarily mean that they must be paid to all directors.
Above is the most common type of payment to director in recognised their contribution to the comapny .