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Guide to Filing Corporate Tax Returns in Singapore: What You Need to Know
31/05/2023
Singapore is renowned for its attractive business environment, low taxes, and ease of business. However, businesses operating in Singapore must still comply with tax laws and regulations, including filing corporate tax returns. As a business owner or manager, understanding the corporate tax system in Singapore is crucial to ensure that you are fulfilling your obligations and avoiding potential penalties.
This blog post will provide a comprehensive guide to filing corporate tax returns in Singapore, including what you must know, what documents you must prepare, and important deadlines to remember.
How do you file your corporate tax returns in Singapore?
In Singapore, businesses must declare their revenue to the Internal Revenue Authority of Singapore (IRAS) by filing tax return forms C or C-S within specific deadlines. It’s worth noting that companies are expected to file a corporate tax return, regardless of whether they’ve incurred losses. In this guide, we’ll explain the distinctions between the two forms, assist you in determining which form applies to your company, and provide guidance on accurately declaring your business’s annual income.
What is form C-S?
To streamline the tax filing process, Singapore’s government created Form C-S, a condensed version of Form C that’s only three pages long and designed for small businesses. Form C-S comprises 18 fields, which include a statement confirming the company’s eligibility for the form, tax adjustments, and financial accounts.
Examples of what must be included in this form include:
- Statement of the company’s eligibility for Form C-S
- Tax adjustment
- Financial accounts
Unless the Internal Revenue Authority of Singapore (IRAS) explicitly demands it, no supporting documents must be provided. However, the company must still prepare and input all tax computation and financial statement details on Forms C-S and C-S (Lite) themselves, which are required documents.
What is form C-S (Lite)?
Form C-S (Lite) is a recent addition designed for smaller companies that meet the qualifications for Form C-S and have an annual revenue lower than $200,000. This option becomes available when the revenue amount is entered during the filing process. With only six crucial fields to complete, Form C-S (Lite) simplifies the tax filing process.
Which companies are eligible for Form C-S?
To be eligible for filing Form C-S, a company must fulfill the following criteria:
- The company must be incorporated in Singapore.
- The company’s annual revenue should not exceed $5 million.
- The company must earn income subject to the prevailing corporate tax rate of 17%.
- The company must not claim carry-back of Current Year Capital Allowances/Losses, group relief, investment allowance, foreign tax credits, and tax deducted at source in the relevant Year of Assessment (YA).
What is tax return form C?
Companies that do not fulfill the requirements for filing Form C-S must file Form C instead. Form C is longer, spanning seven pages, and is designed for larger companies. It necessitates more accompanying documents and entails more fields to input.
What documents are required for filing Form C?
To file Form C, you need to submit the following documents (in PDF format):
- Form C
- Audited or unaudited financial statement report (unless you have a dormant company or have filed a full set of XBRL accounts on ACRA)
- Detailed profit and loss statement
- Tax computation with supporting schedule
- Revised tax computations for previous YAs
- Respective R&D claim forms (if your company claims tax benefits from R&D spending)
- Declaration form (if your company claims Writing Down Allowances)
How do you file Forms C-S or C?
Filings are made through the IRAS myTax Portal.
Forms C-S or C can be filed electronically, and the following is a step-by-step guide:
Pre-filing preparation:
- Ensure that your company has an access code.
- Confirm that you have been authorized as an “Approver” for corporate tax matters.
- Note down the tax reference number and Corppass details.
Actual e-filing:
- Log in to myTax Portal.
- Choose Business Tax and log in using Corppass.
- Enter the organization’s tax reference number.
- Click on Corporate Tax and choose File C-S/C.
- Select the relevant Year of Assessment (YA).
- Proceed to Form C-S or C.
- Continue to the confirmation page, save the information, and click submit.
When must Form C or Form C-S be filed?
Regarding the tax filing deadlines, companies are expected to file their tax returns by the 30th of November of each Year of Assessment.
What are the consequences of submitting tax returns late?
If you fail to submit the required forms before the deadline, IRAS will issue a Notice of Assessment (NOA) based on your company’s income estimates. If you wish to dispute the NOA, you can file a Notice of Objection (NOO) within two months. However, you must still pay the tax assessed within one month of receiving the NOA, even if you have filed a NOO.
If your company fails to pay the assessed tax, IRAS may offer to settle the matter with a composition fee ranging from $200 to $1,000.
If your company still fails to pay the composition amount and file tax returns, IRAS may issue a Section 65B(3) notice to the director, requiring them to submit the required information. Failure to comply with the notice may result in the highest penalty, a court summons, and the company director may face a maximum fine of $10,000, imprisonment of up to 12 months, or both.
How can Belaws help?
If you have a question about tax in Singapore, please speak directly with one of our experts.
You can also view our Singapore incorporation services here.
This article is for information purposes only and does not constitute legal advice.
Our consultations last for a period of 1 hour and are conducted by our expert lawyers who are fluent in English, French and Thai.
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Frequently Asked Questions
How do I register my GST number in Singapore?
You can register your GST number in Singapore by submitting an application online through the Inland Revenue Authority of Singapore (IRAS) website using your SingPass or CorpPass account. Alternatively, you can also submit a hard copy of the application form to the IRAS.
Who needs to register for GST in Singapore?
Businesses that make taxable supplies of goods and services and have an annual turnover of more than S$1 million are required to register for GST in Singapore. However, businesses that have an annual turnover of less than S$1 million may choose to register for GST voluntarily.
When should I register for GST in Singapore?
You should register for GST in Singapore within 30 days of your business exceeding the annual turnover threshold of S$1 million, or if you anticipate that your business will exceed the threshold within the next 12 months.
What does it mean to be GST registered in Singapore?
Being GST registered in Singapore means that your business is registered with the Inland Revenue Authority of Singapore (IRAS) and is authorized to charge GST on taxable goods and services provided to customers. GST-registered businesses can also claim input tax credits on GST paid on business purchases and expenses.
Is GST number the same as business number in Singapore?
No, GST number and business number are not the same in Singapore. A GST number is a unique identification number assigned by the Inland Revenue Authority of Singapore (IRAS) to businesses that are registered for GST. On the other hand, a business number in Singapore generally refers to the Unique Entity Number (UEN) which is a standard identification number used by government agencies to identify businesses.
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