Corporate Tax Filing Service Singapore

Filing of Income Tax for Company

Corporate Tax or Company's Tax Filing

Corporate Tax Filing refers to the filing of income tax for a Company and it is different from Individual Tax Filing (where it is the filing of income tax for individual and it is also known as Personal Tax filing).

Corporate Tax Filing Service

Estimated Chargeable Income or ECI Filing

corporate tax

A Company must file its ECI within 3 months from the date of its financial year end. ECI is estimated taxable income of the Company for the relevant Year of Assessment (i.e. the year which the Company's income is assessed and it is usually the year after the financial year end of the Company). Though the Inland Revenue Authority of Singapore (IRAS) would usually notify the Company to file the ECI, the Company should still file the ECI regardless of whether they receive the notification.

By filing the ECI, the Company is eligible to pay its Corporate Taxes by instalments. The earlier the Company files its ECI, the more instalments it would receive from IRAS. This is to encourage early filing of the ECI.

IRAS announced that, by Year of Assessment (YA) 2020, it will be compulsory to file the ECI electronically, i.e. no more paper filing of ECI. In fact, YA 2018 will be the beginning of this transition period where Companies with turnover of more than SGD10 million can no longer file a paper ECI. By YA2019, Companies with turnover of more than SGD1 million can no longer file a paper ECI. Once it reaches YA2020, Company can no longer file a paper ECI regardless of the amount of turnover.

After filing the ECI, IRAS will issue a Notice of Assessment (i.e. Tax Bill) either based on the ECI filed or based on the estimated income IRAS thinks is reasonable.

Corporate Tax Filing

corporate tax filing

Every Company has to file a Corporate Tax Return annually by 30 November for paper filing and 15 December for electronic filing. Electronic Filing of Corporate Tax Return will also be made compulsory on the same timeline as the ECI, i.e. Compulsory for Companies with turnover of more than SGD10 million in YA2018, compulsory for Companies with turnover of more than SGD1 million in YA2019, and Compulsory for all Companies in YA2020.

Form C & Form C-S and Corporate Tax Exemption

corporate tax service

For the first 3 years of a new start-up Company, 100% of the first $100,000 and 50% of the next $200,000 do not attract corporate tax. Assuming the Company’s Taxable Profit (also known as the Chargeable Income) is $300,000, the Company only pays about 5.67% of tax (i.e. 17% x 50% x SGD200,000 divided by SGD300,000) on the first $300,000 Taxable Profit for the first 3 Years of Assessment from incorporation. If there is corporate tax rebate, the tax can be even lower.

On the 4th and subsequent Years of Assessment, 75% of the first SGD10,000 and 50% of the next $290,000 do not attract corporate tax. Assuming the Company’s Taxable Profit is $300,000, the Company only pays about 8.36% of tax (i.e. (17% x (25% x SGD10,000 + 50% x SGD290,000) divided by SGD300,000) on the first SGD300,000 of Taxable Profit.

17% Corporate Tax Rate shall apply to Taxable Profit above $300,000.

The above analysis is based on the corporate tax rates as at 31 December 2017.

Budget 2018

Finance Minister announced changes to the corporate tax exemption during Singapore Budget 2018.

The corporate tax exemption with effect from Year of Assessment 2020 is explained in the next 3 paragraphs.

For the first 3 years of a new start-up Company, 75% of the first $100,000 and 50% of the next $100,000 do not attract corporate tax. Assuming the Company’s Taxable Profit (also known as the Chargeable Income) is $300,000, the Company only pays about 9.91% of tax (i.e. 17% x (25% x SGD100,000 + 50% x SGD100,000 + SGD100,000) divided by SGD300,000) on the first $300,000 Taxable Profit for the first 3 Years of Assessment from incorporation. If there is corporate tax rebate, the tax can be even lower.

On the 4th and subsequent Years of Assessment, 75% of the first SGD10,000 and 50% of the next $190,000 do not attract corporate tax. Assuming the Company’s Taxable Profit is $300,000, the Company only pays about 11.19% of tax (i.e. (17% x (25% x SGD10,000 + 50% x SGD190,000 + SGD100,000) divided by SGD300,000) on the first SGD300,000 of Taxable Profit.

17% Corporate Tax Rate shall apply to Taxable Profit above $200,000.

The above analysis is based on the corporate tax rates as at 28 February 2018.

Normal or Simplified Corporate Tax Filing in Singapore

corporate tax rate

There are 2 types of Corporate Tax Returns, Form C and Form C-S. Form C-S is the simplified version of the original Form C. To be eligible to file Form C-S, the Company must satisfy the following conditions:

  1. Is incorporated in Singapore;
  2. Has Annual Revenue of not more than SGD1 million;
  3. Derives income taxable at prevailing corporate tax rate of 17% (i.e. Company is not under certain tax concession or exemption scheme where it is taxed at a rate lower than the current corporate tax rate of 17%); and
  4. Is not claiming the following:
  • Carry-back of Current Year Capital Allowances or Losses;
  • Group Relief;
  • Investment Allowance;
  • Research and Development Tax Allowance; and
  • Foreign Tax Credit and Tax Deducted at Source

Familiar with IRAS Procedure on Corporate Tax Filing?

Corporate Tax Return Electronic Filing

If you are not familiar with IRAS procedure and requirements for corporate tax filing, we are just a telephone call away. We are very familiar with IRAS procedure and requirements on corporate tax filing and application for tax exemption and concession. As such, you can count on us. Besides Corporate Tax Filing, we also provide Individual Tax Filing, GST Filing, Accounting Services, Corporate Secretarial Support and Merger & Acquisition Services.

Corporate tax return filing is just one of our services. Let our tax accountants provide you with other tax filing as well as financial accounting and management accounting services. When it comes to accounting, tax and other related services, you know you are in good hands when you engage us.

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We provide full range of tax services, from individual tax to corporate tax and GST services. We also provide filing service for withholding tax.

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Tax is one area of support we provide. Company registration or incorporation is another area which we can help.

Help on Corporate Tax Return Filing

Call our Tax Consultant at (+65) 6303 0625 and discuss your Corporate Tax Computation, Form C and Form C-S Filing Service.

You may also drop us a note here.

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