Tax Filing Singapore: A Basic Guide for the Payments of Corporate Taxes in Singapore
The corporate tax rate in Singapore is one of the biggest reasons businesses prefer city-state. Marked at 17%, it is one of the lowest in the world. However, companies should ensure that they do all their taxes and make reports of them. Well, to help you with that here is an essential guide for Tax filing Singapore. Read on, and you will get a clear clue of what you need to do to fill the income tax Singapore.
What Companies Should File Income Tax Singapore?
Every company incorporated in Singapore, and making a profit in either Singapore or in other nations, which are remitted back to Singapore should file the income tax in Singapore.
What is the Fiscal Year for Companies in Singapore?
Companies are free to decide on their own fiscal year. Nevertheless, we recommend you to keep your budgetary year under 365 days as this way; you will get full tax exemption if you are a startup.
Annual General Meeting and Annual Filing Date
Before you pay any tax, you should file first your Annual Returns with the Accounting and Corporate Regulatory Authority (ACRA). This is to be done within one month of the
Annual General Meeting. If you didn’t know the rules, a Private Limited Company should conduct its Annual General Meeting every year.
For more information about the annual filing, click here.
When Should You File the Annual Tax Return?
Well, you should do it every year by November 30 for paper and by November 15 for e-filing. You will need to pay taxes for every income you make in the previous accounting year.
Things You Should do for the Corporate Tax Compliance
As a corporation, you have two major duties for the Tax Filing Singapore. They are:
- First, you should prepare the filing of the estimated chargeable income (ECI). You will need to do this within three months of your year-end financial period. However, making an ECI could be challenging for small businesses because of the lack of resources. For more information, click here.
- File the corporate income tax Singapore.
Remember, you file your taxes with the IRAS Singapore. Thus, you will also be liable to answer any inquiry that IRAS has.
Form C-S vs. Form C
One of the frequently asked questions about Tax Filing Singapore is the difference tween Form C-S and Form C.
Well, in simple terms, Form C-S and Form C are both almost the same and are for tax filing purposes. However, they are, respectively three and seven pages long. Moreover, Form C-S is for small companies, and Form C is for bigger enterprises. Here are the requirements for a company to be eligible to fill up the Form C-S. Remember, every one of these conditions should be fulfilled, and a company which doesn’t meet any of its terms should file Form C.
- The company has been incorporated in Singapore.
- The annual revenue is $5 million or below
- The enterprise only derives income taxable at the prevailing corporate tax rate of 17%; and
- The company is not requesting for any of the following in the YA:
- Carry-back of Current Year Capital Allowances/Losses.
- Group assistance.
- Investment payment.
- Foreign tax credit
- Tax deducted at source.
Why Do You Need to Seek Professional Help While Filing for Taxes in Singapore?
Companies, especially startups and SMEs, tend to make a lot of mistakes while filing taxes in Singapore. Some of these include incorrect calculation of taxable incomes, EIC, paying more tax than needed (lack of information about incentives), etc. Mistakes like these are definite to haunt companies in later dates, and some might even make IRAS call and make them pay fines.
Well, a professional corporate tax service will help you pay minimal taxes and make precise calculations so there will be no faults. It will also save a lot of your time and effort. The money you spend will be worth it when compared to the stress you have in your head when you are puzzled.
Chai Chung Hoong, Account Manager
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