Guide to Singapore Corporate Tax Filing Procedures
A Singapore corporate tax regime is attractive, with low, transparent tax rate and efficient reporting & filing system.
Below is a short overview of Singapore Learn More and the process to pay the company’s taxes.
Who Should Pay Singapore Corporate Taxes?
All Singapore businesses must pay tax on variable income drawn from foreign income abated into Singapore or from Singapore.
Tax resident firms take advantage in perks over companies which are non-tax resident.
Tax Exemptions for Singapore Tax Resident Companies
Singapore companies are exempt from double taxation of specific profits in nations where there are signed Double Tax Agreements in place.
Tax resident company is eligible for tax reduction or exemption on profit taxed overseas. In another word, if IRAS tax these profits, the business can claim tax reduction.
A Singapore company may qualify for tax reductions on overseas dividends, branch profits as well as service profits.
To qualify for tax reduction, the foreign country must charge at least 15% corporate tax, and IRAS believes that tax reduction is advantageous to the business.
Aside from business taxes, Singapore companies should disclose withholding tax paid. IRAs may reimburse withholding tax paid under specific circumstances.
When to File Corporate Tax in Singapore?
All applicable and pertinent corporate income tax documents should be filed on an annual basis by 30 November. For online tax return submission, Singapore companies must submit on and before 15 December
From YA 2020 (i.e. for the financial year ending 2019), IRAS requires Singapore companies to submit corporate tax online.
It is an offence for late submission of documents, and IRAS will prosecute company directors or officers in the law of court. The company directors or officers might be fined S$1,000 up to S$10,000, respectively.
The business might be permitted to settle its fine in disbursing a composition sum of S$200 up to S$1,000.
In any event, the company still needs to file the outstanding business tax papers and documents.
How Much Tax Business Owners Need to Pay?
Singapore Corporate Tax
Corporate tax in Singapore is at 17% on taxable income.
A business can work out and compute its taxable profit by taking taxable incomes or any recurring as well as an ongoing source of money drawn from Singapore or brought into Singapore and take from deductible costs or expenditures.
Taxable expenditures generally refer to operating expenses entirely incurred in the ordinary course of business.
So, the company must provide evidence to support that it incurred these expenditures as part of the sales cycle.
Process in Filing Corporate Tax in Singapore
File ECI (Estimated Chargeable Income) Form Online
Companies in Singapore must file an Estimated Chargeable Income (ECI) online to provide an estimate of their taxable business profit to IRAS.
You can do it via myTax Portal, the IRAS official website, within three months from the end of the previous financial year.
IRAS exempts Singapore companies to file ECI if they meet the certain exemption criteria.
For example, their annual revenue is not more than S$5 million, and there is no estimated taxable profit for the Year of Assessment.
File Annual Income Tax Return to IRAS
We assist companies in filing income tax return via myTAX Portal.
All companies in Singapore, including those under liquidation, making losses as well as waiting to be struck off, must file an annual income tax return.
This type of tax offers a statement of the company’s actual profit instead of the ECI that is an estimation.
Companies file ITR using Form C, and businesses must maintain evidential documents to support the financial statements.
Singapore incorporated businesses can submit a Form C-S if they meet all the following requirements:
- The company has an annual revenue of not more than S$5 million;
- The company is a Singapore registered entity;
- The company’s income is taxable at the corporate tax rate of 17%; and
- The company does not plan to claim under specific schemes such as foreign tax credits or investment allowances.
Dormant companies (with related party transactions less than SGD 15 million) can file Form C-S if they meet all the above requirements.
IRAS Notice of Assessment (NOA)
After IRAS completes its assessment of your application form, they issue the Notice of Assessment (NOA) by 31 May in the following year.
The NOA takes account of a thorough report of the tax liabilities of the business for the tax period.
Also, an NOA represents a chance for the company to come up with an objection to IRAS tax assessment.
Payment for NOA to IRAS
Singapore businesses must pay the assessed tax amount by 30 days from the time they received the NOA.
IRAS makes disbursement to businesses through online banking, interbank GIRO, telegraphic transfer as well as cheque.
Need assistance in filing Learn More
We can help you with all your accounting needs, including corporate taxes.
We are the best choice as we have many years of experience in Singapore tax service.
Many SMEs rely on us when it comes to filing corporate taxes and we have corporate tax specialists that can help you with this matter.
Contact us and we can help you with your tax needs!