Corporate Tax Services

One of the advantages to establish a company in Singapore is the prevailing corporate tax rate at 17%. In addition to the low tax rate, IRAS reduces the tax liabilities further through various tax exemptions and tax rebates for qualifying companies. But with all these tax benefits given, many business owners are not well versed in computing the tax and often did not fully utilize those benefits. As a result, you may incur paying more taxes then you are supposed to.

Every year, all companies are required to submit 2 corporate income tax forms to IRAS.

1. Estimated Chargeable Income (ECI)
2. Corporate Tax Form – Form C or Form C-S (simplified)

Criteria For ECI Wavier 

Your company does not need to submit for ECI if it meets the following criteria:

1. annual revenue is not more than $5 million for the financial year; and
2. ECI* is NIL for the YA.

Companies that do not qualify for the exemption are required to e-file the ECI within 3 months after the financial year-end. An Installment plan will be granted for the tax payment when the ECI is submitted within 3 months.

Further, you do not need to inform IRAS that your company has met the wavier conditions for ECI submission.

Corporate Tax Submission – Form C/C-S

Subsequently, there are 2 types of corporate income tax forms to be submitted and are Form C or Form C-S. The form encompasses of the tax deductibles, non-taxable items, capital allowance, and any other deductions that will derive the chargeable income. Usually, before filling up the tax form, the company has to prepare the tax computation with the supporting schedules. IRAS may request for the tax computation and any supporting documents to assess the tax submitted.

All companies are required to submit the corporate income tax return even if it is making losses. A wavier of Form C/C-S can be submitted if the company is dormant* throughout the financial period.

*No accounting transaction, such as sales or operating expenses other than bank charges and compliance cost. 

Form C or Form C-S

Form C-S is a simplified version compare to Form C. It has fewer fields and is shortened to 3 pages which compromise of a declaration statement of the company’s eligibility, tax adjustments, and information from the financial statements. Moreover, there is no need to submit supporting documents to IRAS when submitting the Form C-S.

To qualify for the Form C-S, companies have to meet the following criteria:

1. Must be incorporated in Singapore;
2. Annual revenue of less than $5 million;
3. Only derives income taxable at the prevailing corporate tax rate of 17%; and
4. Is not claiming any of the following in the YA:
   1. Carry-back of Current Year Capital Allowances/ Losses
   2. Group Relief
   3. Investment Allowance
   4. Foreign Tax Credit  and Tax Deducted at Source

However, if you do not qualify for Form C-S, do submit Form C together with financial statements, tax computation, and support schedules.

From YA 2018 onwards, all tax submission has to be e-file from IRAS tax portal. Companies will require to set up the CorpPass account and authorize a tax filing personnel/agent as the approver to enable the tax filing authorization.

Currently, the annual tax filing due dates for Form C/C-S are.

1. 30 November (Paper form submission)
2. 15 December – Extended filing due date (E-filing)

On the other hand, IRAS has announced that by YA 2021 there will only be a single tax filing due date (30 November). The extended tax filing due date will cease. So do ensure that you are ready to submit the tax when it is due.

To enquire about our corporate tax services, do drop us an enquiry and we will reply with a quote.

Lastly, if you are looking for the full suite of corporate services, do check out our Annual Compliance Package.