Corporate Tax Singapore
November is here and it is the tax season again! Singapore offers one of the lowest corporate tax rates in the world with a default flat rate of 17% and runs an efficient tax filing system. When it comes to Singapore corporate tax, it is crucial to first understand the Year of Assessment (YA).
In this article, we will explain the corporate tax obligations of a Singapore registered company, as well as what is required to prepare, in a simple and easy to understand guide.
Corporate Tax Obligations
For every Year of Assessment (YA), Singapore companies have to file 2 Corporate Income Tax Returns with IRAS as per the following:
| Corporate Tax | Definition | Due Date |
|---|---|---|
| Estimated Chargeable Income (ECI) | An estimation of your company’s taxable income | 3 Months After Your Financial Year End (FYE) |
| Form C / Form C-S / Form C-S (Lite) | An actual declaration of your company’s taxable income | 30th November every Year of Assessment (YA) |
In order to stay compliant and to avoid penalties, it is important that company owners understand these obligations and take note of their due dates.
The following is written as a preparation guide for actual declaration of your company’s taxable income via Form C / C-S / C-S (Lite).
Preparing Your Corporate Tax
Before we begin the filing process of your corporate income tax, you may check out the following table to understand which type of corporate tax form is applicable for your company.
| Type of Form | Eligibility Criterias |
|---|---|
| Form C-S | |
| Form C-S (Lite) | |
| Form C |
Documents Required
Preparing Your Tax Computation
Tax computation is a statement that shows the tax adjustments made to the accounting profit in order to arrive at the taxable income.
Tax adjustments include non-deductible expenses, non-taxable receipts, further deductions and capital allowances. Your company should prepare its tax computation annually before completing its Form C / C-S / C-S (Lite).
Form C-S / Form C-S (Lite)
For companies that are eligible to file form C-S or Form C-S (Lite), you are only required to submit either Form C-S or Form C-S (Lite) respectively. However, companies should still prepare the following documents as IRAS may require you to submit them for verification upon request.
Upon request by IRAS, companies must prepare:
- Audited/ unaudited financial statements
- Tax computation and supporting schedules
- Other supporting documents
Form C
For companies that are not eligible to file form C-S or Form C-S (Lite), you are required to submit the following documents:
- Form C
- Audited/ unaudited financial statements
- Detailed Profit and Loss Statement
- Tax computation and supporting schedules
- Revised tax computation(s) for prior Year(s) of Assessment (YAs)
- Relevant claim forms ( Group Relief Forms, Research & Development Claim Form etc)
- Writing Down Allowances Declaration Form
- Form IRIN 301 (Additional Information on Income and Deduction)
- Other supporting documents
These documents must be filed together with Form C, unless it is specifically mentioned that they should be retained and submitted only upon IRAS’ request.
Filing Your Corporate Tax
You may log in to myTax Portal to file your corporate tax returns or you may also assign a tax agent as ‘Approver’ in Corppass to file tax on your behalf.
Alternatively, if you need additional support with your corporate tax, you may engage our tax experts to take care of your taxation matters.
