Singapore Company Tax Return Requirements
Preparing tax returns is mandatory for companies in Singapore. It is a legal requirement for all companies to file their tax returns with the Inland Revenue Authority of Singapore (IRAS) with a deadline of 30 November starting in 2009. As for some other companies, the due date is 15 December.
A company should file returns even if it did not make profits for that particular year. Failure to comply with this law may lead to a company having to bear the burden of civil and criminal penalties. This is very risky for you.
Corporate Tax Return Notice for your Company
If you have a company, you are required to file your corporate tax returns with the IRAS which then provide an assessment of how much tax you should pay for the year of assessment.
The IRAS then sends you a notice of assessment and a statement of account. The notice of assessment shows how much tax you are supposed to pay. You should pay your taxes one month after receiving the notice of assessment. In case you are not in agreement with the assessment, you can lodge a complaint with the IRAS although you still need to pay your taxes within one month.
The Rate of Corporate Tax Return in Singapore
Corporate tax is tax paid out of taxable profits by limited companies which are either public or private. In Singapore, the tax rate that you should pay for your company depends on a number of factors. If your company is more than 3 years old, then the effective tax rate is around 8.5% for the first $300,000.
However, new companies which are less than 3 years old enjoy tax incentives of full exemption for the first $100,000 if qualifying conditions are met. Other companies pay a flat tax rate of 17% on their taxable income via the partial tax exemption scheme.
What’s more? You could further reduce your tax legally through proper tax planning in Singapore.
What to Submit for your Corporate Tax Returns
In addition to form C, your tax returns should have the following additional documents;
- Tax computation statement & it’s supporting tax schedules; and
- Audited or unaudited financial statements of accounts (including detailed profit and loss & balance sheet statement)
Small companies which are filing form C-S do not need to submit their financial accounts although they should prepare them. They also need not submit tax computation statement unless requested.
Since your net profit is not the taxable income, you are required to compute the amount of tax you are to pay by making adjustments to the net profit. If your company does not have corporate shareholders, the shareholders are less than 20 and annual turnover is not above $10 million, then you can file unaudited accounts, else, you will need to file audited accounts.
Reminder on your Singapore Company Tax Return
J Accounting Services would like to remind the public to file it’s yearly company tax return on a timely basis. Failure to do so could lead to dire consequences of fine and even imprisonment.
If you need help with your company’s tax compliance matters, do take a look at what J Accounting has to offer you. There are yearly company compliance packages available as well. This covers everything you need to be in compliant with the authorities of Singapore (i.e. IRAS and ACRA), and you will be sure that you will not land yourself into any trouble.
