Quick References on Corporate Tax Filing

 



1.1   What are the important deadlines for Corporate Tax Filing?

If a company's financial year ends on 31 December, the income for Year of Assessment (YA) 2016 is its income generated for the preceding year, i.e. 1 Jan 2015 to 31 Dec 2015. Based on a Company with a financial year end 31 December, the important deadlines for tax filing are:

Deadline

What has to be filed?

Mode of Filing

31 March

Estimated Chargeable Income (ECI)

E-File

30 November

Corporate Income Tax Form (Form C-S/C)

Paper file

15 December

Corporate Income Tax Form (Form C-S/C)

E-file



Note:

  1. You need not submit ECI if you company's ECI is nil and annual revenue is not more than S$1 million.
  2. You need to file the ECI within 3 months from your company's financial year end even if your company does not receive the ECI notification from Inland Revenue Authority of Singapore ("IRAS") to complete and submit the ECI form in the last month of your company's financial year.


For Sole-Proprietors and Partners, please click here.

We can assist your company with the preparation of a draft tax computation based on its management accounts before e-filing the ECI so that it gets to enjoy installments for tax payments (subject to IRAS ECI filing guidelines).


 



1.2   What documents are needed for the filing of Form C-S/C?

Companies should prepare their tax computations yearly before completing the Form C-S/C. Companies filing Form C need to submit their audited/unaudited accounts, tax computation and supporting schedules together with Form C. Companies filing Form C-S are still required to prepare their financial accounts, tax computation and supporting schedules, and submit them to IRAS upon request.

We can assist your company with the preparation of its accounts, tax computation and supporting schedules alongside the submission of Form C-S/C.


 



1.3   What is the minimum period for maintenance of business records?

Businesses have to maintain a proper system to keep records of business transaction for at least 5 years from the relevant Year of Assessment. Records have to be readily available upon IRAS' request.

Examples of documents to be kept as business records are:

  1. Source documents (e.g. invoices, receipts and vouchers)
  2. Accounting records and supporting schedules
  3. Bank statements and bank deposit slips
  4. Other business transaction records


 



1.4   What will follow after filing ECI?

After submitting the ECI Form, you will receive a Notice of Assessment (NOA) via post and you can view the NOA online at myTax Portal.

The NOA shows the amount of tax to be paid and it must be paid within 1 month from the date of the NOA unless you have submitted a Giro application form for payment of tax by installments.


 



1.5   Which corporate tax form (Form C-S or Form C) should my company use?

There are 2 types of corporate income tax forms, namely Form C-S and Form C. Even if your company makes losses, you will still need to file the corporate income tax form.

Form C-S is a shorter form that is easier to complete and IRAS no longer issues paper copies of this form. A company qualifies to submit Form C-S if it:

  1. is incorporated in Singapore
  2. has an annual revenue of not more than S$1 million
  3. derives only income taxable at the prevailing corporate tax rate of 17% (Please refer to IRAS website for the latest corporate tax rate)

and does not need to claim any of the following:

  1. Carry-back of current year capital allowances/losses
  2. Group relief
  3. Investment allowance
  4. Research & Development Tax Allowance
  5. Foreign Tax Credit and Tax deducted at source

IRAS will send your company a Form C-S or Form C filing package in April every year.

New companies will receive their package only 2 years after its year of incorporation. However, if your company has closed its first set of accounts in the year of incorporation, please ask IRAS to send a Form C-S/C filing package by May of the following year.

We can assist with:

  1. Reviewing your Company's statutory financial statements for appropriate tax adjustments for income tax filing purposes as well as assist to request for Form C/ C-S (if required)
  2. Preparing and submitting the tax computation with the supporting schedules to IRAS.


 



1.6   How can my company enjoy tax savings under the Productivity and Innovation Credit (PIC) Scheme?

If your company has spent on the following 6 qualifying activities in the preceding year:

  1. Acquisition and leasing of PIC IT and automation equipment
  2. Training of employees
  3. Acquisition and licensing of intellectual property rights
  4. Registration of patents, trademarks, designs and plant varieties
  5. Research and development
  6. Investment in design projects

It may enjoy tax savings in the form of:

  1. Cash Payout (maximum S$60,000); or
  2. 400% Tax Deduction

We can assist with your company's application for either the PIC Cash Payout or PIC Enhance Deduction. For equipment that are not in the PIC IT and Automation Equipment List but still automate or mechanise business processes and enhance productivity, you may apply to IRAS for approval on a case-by-case basis. We can assist with the application.


 



1.7   What must the company do for its employees' tax filing?

Employers with 11 or more employees are required by law to e-submit the employment income information to IRAS by 1 March each year so that the employment income information will automatically be included in each employee's income tax assessment. Employers with less than 11 employees can submit hardcopies of Form IR8A and relevant appendices (Appendix 8A, Appendix 8B or Form IR8S) where applicable.


 



1.8   What must the company do if its non-citizen employee ceases employment or plans to leave Singapore for more than 3 months?

It is the employer's responsibility to ensure the employee pays all taxes. This applies to all work pass holders including Personalised Employment Pass holders. This process is known as tax clearance.


 



1.9   What must the company do for tax clearance?

The company has to complete Form IR21 at least one month before the non-citizen employee ceases employment in Singapore. The employer is also required to withhold any monies (including overtime pay, leave pay, all allowances and reimbursements, gratuities and lump sum payments, etc.) due to the employee from the day he/she notifies the company of his/her intention to cease employment or when the company decides to terminate the employment or post the employee to an overseas location. Once IR21 has been processed, IRAS sends the tax bill the employee and he/she will be informed to pay the difference if the amount withheld by the company is not sufficient to pay his/her taxes.

We can assist with the preparation of Returns of Employees Remunerations (Form IR8A) and Tax Clearance (Form IR21).


 



1.10 When does withholding tax apply?

Singapore withholding tax applies when a Singapore company or individual makes certain types of payments, such as royalty, interest, management fees, technical service fee, etc, to a non-resident company or individual for services. The withholding tax is charged to the non-resident company or individual by when a portion of the payment due to the non-resident company or individual is withheld by the Singapore company or individual and paid to IRAS.

In general, Singapore withholding tax applies in the following instances:

  1. When income is derived from a Singapore source only
  2. When the payment receiving party is a non-resident entity
  3. When services are provided or work is done in Singapore
  4. When specific types of payments are made, as mentioned above

We can check if Withholding Tax is applicable and assist with the preparation of Form 37 for Withholding Tax Compliance.