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    Tax Guide For New Companies (English)

    Uploaded by

    johnsolarpanels
    This document provides a guide for new companies on corporate income tax filing obligations in Singapore. It outlines key tax forms and deadlines, including: - Companies must submit an Estimated Chargeable Income form within 3 months of the financial year end to estimate taxable income. They must also submit a Corporate Income Tax form by 30 November each year to declare actual income. - Common records that must be kept for at least 5 years include source documents, accounting records, bank statements and other transaction records. - The guide explains the two types of corporate tax forms, Form C-S and Form C, and the qualifying conditions for Form C-S, which is shorter. It also provides details on filing procedures and

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Tax Guide For New Companies (English)

    Uploaded by

    johnsolarpanels
    64 views10 pages
    This document provides a guide for new companies on corporate income tax filing obligations in Singapore. It outlines key tax forms and deadlines, including: - Companies must submit an Estimated Chargeable Income form within 3 months of the financial year end to estimate taxable income. They must also submit a Corporate Income Tax form by 30 November each year to declare actual income. - Common records that must be kept for at least 5 years include source documents, accounting records, bank statements and other transaction records. - The guide explains the two types of corporate tax forms, Form C-S and Form C, and the qualifying conditions for Form C-S, which is shorter. It also provides details on filing procedures and

    Original Description:

    Tax Guide for New Companies (English)

    Original Title

    Tax Guide for New Companies (English)(1)

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    © © All Rights Reserved

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    This document provides a guide for new companies on corporate income tax filing obligations in Singapore. It outlines key tax forms and deadlines, including: - Companies must submit an Estimated Chargeable Income form within 3 months of the financial year end to estimate taxable income. They must also submit a Corporate Income Tax form by 30 November each year to declare actual income. - Common records that must be kept for at least 5 years include source documents, accounting records, bank statements and other transaction records. - The guide explains the two types of corporate tax forms, Form C-S and Form C, and the qualifying conditions for Form C-S, which is shorter. It also provides details on filing procedures and

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    64 views10 pages

    Tax Guide For New Companies (English)

    Uploaded by

    johnsolarpanels
    This document provides a guide for new companies on corporate income tax filing obligations in Singapore. It outlines key tax forms and deadlines, including: - Companies must submit an Estimated Chargeable Income form within 3 months of the financial year end to estimate taxable income. They must also submit a Corporate Income Tax form by 30 November each year to declare actual income. - Common records that must be kept for at least 5 years include source documents, accounting records, bank statements and other transaction records. - The guide explains the two types of corporate tax forms, Form C-S and Form C, and the qualifying conditions for Form C-S, which is shorter. It also provides details on filing procedures and

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 10

    TAX GUIDE for

    NEW COMPANIES
    Completing and filing the Corporate Income Tax Form
    for the first time? Read on
    CORPORATE
    INCOME TAX

    BUSINESS
    RECORDS

    YEARLY
    TAX FORMS

    EASY

    TAX
    BILL

    GIRO
    YEARLYE
    INCOM

    IRAS

    AIS

    This starter guide provides basic information


    on corporate income tax and filing obligations.
    Overview of Contents

    INTRODUCTION
    TO
    CORPORATE
    INCOME TAX

    Introduction

    BUSINESS
    RECORDS

    Business
    Records that
    Companies
    Must Keep

    YEARLY
    TAX FORMS

    Tax Forms that


    Companies Must
    Submit Yearly

    e-Services
    the Best Way to
    File and Check
    Company Tax
    Matters

    TAX
    BILL

    YEARLYE
    INCOM

    Common Tax
    Reliefs that
    Help Reduce
    the Tax Bill

    Employers
    Responsibility
    to Report
    Employees
    Yearly Earnings

    A
    INTRODUCTION
    TO
    CORPORATE
    INCOME TAX
    Introduction

    Income for a particular Year of Assessment (YA) is the


    companys income for the preceding financial year. For
    example, if your companys financial year ends on:
    BUSINESS
    31 Dec, the income for YA 2016 is that for
    RECORDS
    the
    financial year 1 Jan 2015 to 31 Dec 2015.
    31 Mar, the income for YA 2016 is that for
    the financial year 1 Apr 2014 to 31 Mar 2015.
    The prevailing corporate tax rate is 17%. Please refer
    to the IRAS website for the latest corporate tax rate.

    YEARLYDates to Remember
    Important
    TAX FORMS

    Within three months from your companys financial


    year end, submit the Estimated Chargeable Income (ECI).

    Within three months

    By 30 Nov each year, submit your companys


    Corporate Income Tax Form (Form C-S/ C).
    If you e-File Form C-S/ C, the due date is
    15 Dec each year.
    30 Nov
    Each Year

    Submit Corporate
    Income Tax Form

    IRAS

    IRAS
    Services at
    a Glance

    Submit
    ECI

    Financial
    Year End

    TAX
    Paper
    Form
    C-S/ C
    BILL

    15 Dec
    Each Year

    Due!
    e-File
    Form C-S/ C

    BINTRODUCTION
    TO
    CORPORATE
    BUSINESS
    INCOME
    TAX
    RECORDS

    Business
    Records
    BUSINESS
    YEARLY
    that
    RECORDS
    TAX FORMS
    Companies
    Must Keep
    C

    YEARLY
    TAX FORMS

    Your company must have a proper system to keep the records


    of its business transactions. The records must be kept for at
    least five years from the relevant YA and be retrievable upon
    request by IRAS. For example, your records for the financial
    year 1 Jan 2015 to 31 Dec 2015 (YA 2016) should be kept up
    to 31 Dec 2020.
    Documents to keep include:
    Source documents, e.g. invoices, receipts and vouchers
    Accounting records and schedules, e.g. general ledger
    and sales listings
    Bank statements and bank-in slips
    Any other business transaction records

    1) ECI Form
    What is ECI?

    Tax Forms
    that
    Companies
    MustTAX
    Submit
    BILL
    Yearly
    Your company needs
    to submit 2 corporate
    income tax forms to
    IRAS every year:
    1) Estimated
    Chargeable
    TAX
    Income
    (ECI)
    BILL
    YEARLYE
    form

    NCOM

    I
    2) Corporate
    Income Tax
    Form, commonly
    known as Form
    C-S or Form C

    YEARLYE
    INCOM

    Estimated Chargeable Income (ECI) is an estimate of the


    companys taxable income (after deducting tax-allowable
    expenses). You can refer to the IRAS website (iras.gov.sg) for
    more information on the expenses that can be deducted for
    tax purposes.
    When to submit ECI?

    The ECI form must be submitted to IRAS within three months


    from your companys financial year end. For example, if your
    company is incorporated in year 2015 and its financial year
    end is 31 Dec 2015, it has to submit its ECI for the financial
    year ending 31 Dec 2015 to IRAS by 31 Mar 2016.
    If your companys financial year end is not 31 Dec, please
    inform IRAS by completing and submitting the form Request
    for Income Tax Return (Form C-S/ C) Filing Package and
    Notification of New Financial Year End from the IRAS
    website once your company closes its first set of accounts.
    Getting the ECI Notification

    IRAS will send you a notification to complete and submit the


    ECI form in the last month of your companys financial year,
    starting from the year following the year of incorporation.
    In the event that your company does not receive the ECI
    notification from IRAS, please proceed to file the ECI within
    three months from your companys financial year end.

    e-File your ECI for


    more instalments!
    You can enjoy up
    to 10 monthly
    instalments if you
    e-File ECI and
    are on GIRO.

    Companies that do not need to submit ECI

    As a concession, you do not need to submit your ECI if your companys:


    ECI is NIL; and
    Annual revenue is not more than $1 million.

    If your company meets these conditions, you do not need to submit its ECI
    even if you have received the ECI notification from IRAS.

    How to file your ECI?

    e-File your companys ECI at myTax Portal (mytax.iras.gov.sg).


    Refer to Section D for more information on e-Services provided by IRAS.
    After submitting the ECI Form - Receiving the Notice of Assessment

    You will receive a Notice of Assessment (NOA) via post after you have submitted your
    companys ECI. You can also view the NOA at myTax Portal. An NOA is an official
    notice that states the amount of tax to be paid. However, IRAS will not issue an NOA
    to your company if it has filed a NIL ECI amount.
    The tax must be paid within one month from the date of the NOA. To pay the tax by
    instalment, sign up for GIRO by submitting a GIRO application. Otherwise, you can pay
    via internet banking, SAM, AXS station, Cash/ NETS at any SingPost branch or cheque/
    cashiers order. The NOA will include information on the various ways to pay.

    2) CORPORATE INCOME TAX FORM - FORM C-S/ C


    What is the Corporate Income Tax Form?

    Besides filing the ECI, you must also declare your companys actual income in the
    corporate income tax form every year. Even if your company makes losses, you still need
    to file the corporate income tax form.
    There are two types of corporate income tax forms,
    Form C-S and Form C.
    Form C-S is shorter than Form C, and is much easier
    to complete. Please submit Form C-S instead of Form C,
    if your company meets these qualifying conditions:

    Form

    C-S

    Qualifying conditions for Form C-S:


    Company:

    Is incorporated in Singapore
    Has an annual revenue of not more than $1 million
    Derives only income taxable at prevailing
    corporate tax rate

    Does not
    claim
    any of the
    following

    X Carry-back of Current Year Capital Allowances/


    Losses
    X Group Relief
    X Investment Allowance
    X Research & Development Tax Allowance
    X Foreign Tax Credit and Tax Deducted at Source

    Form

    You do not
    need to submit
    your financial
    accounts and tax
    computation if
    you file Form C-S.
    But you must
    prepare and retain
    these documents,
    and submit them
    when IRAS asks
    for them.

    IRAS no longer
    issues paper copies
    of Form C-S.
    Getting The Form C-S/ C Filing Package
    e-File Form C-S/ C
    IRAS will send your company a Form C-S or Form C filing package in
    to enjoy a
    Apr every year. A new company will receive the package only two years
    wide range of
    after its year of incorporation, as most new companies do not close their
    benefits!

    first set of accounts in their year of incorporation. So, if your company was
    incorporated in 2014, you will receive your first filing package in Apr 2016.

    If your company closes its first set of accounts in the year of incorporation, and has
    commenced business or was in receipt of income, please ask IRAS for a Form C-S/
    C filing package by May of the following year. This means that, if your company was
    incorporated in 2015 and closed its first set of accounts on or before 31 Dec 2015, you
    must ask IRAS for a filing package by May 2016. Please submit the form, Request for
    Income Tax Return (Form C-S/ C) Filing Package and Notification of New Financial Year
    End, available on the IRAS website.
    e-Filing Form C-S/ C

    e-File Form C-S/ C via myTax Portal to enjoy these benefits:


    3
    3
    3
    3
    3
    3

    Extra 15 days to e-File


    iHelp for step-by-step guidance
    Auto-computation of certain fields that minimise filing errors
    Save draft function
    An estimate of tax payable on the spot
    Instant acknowledgement upon successful e-Filing

    If you cannot e-File Form C-S/ C, please download the softcopy of Form C-S/ C from
    the IRAS website, complete, print and submit the signed copy to IRAS.
    If you do not meet the qualifying conditions for Form C-S, please submit a Form C.
    Find out more about Form C on the IRAS website.
    The filing due date is 30 Nov of each year. If you e-File Form C-S/ C, the due
    date is 15 Dec instead.

    File your Form


    C-S/ C on time!

    IRAS may estimate your companys income and taxes if you


    do not file on time. We may also issue a Letter of Composition
    and/ or Summons to the company and/ or its directors.

    After Filing Form C-S/ C

    After submission of the Form C-S/ C, IRAS will send you an NOA. It will state whether your
    company needs to pay more tax, is due for a refund from IRAS, or that no additional tax/ refund
    is due. Any additional taxes due must be paid within one month from the date of the NOA. You
    can pay via GIRO, Internet banking, SAM, AXS station, Cash/ NETS at any SingPost branch or
    cheque/ cashiers order. The NOA will provide information on the various ways to pay.
    If you do not agree with the tax position stated in the NOA, inform IRAS by filing a
    Notice of Objection within two months from the date of the NOA. You also need to
    give reasons for objecting to the NOA. You may lodge your objection by:

    Using the e-Service Object/ Revise Assessment at myTax Portal (preferred!);


    Submitting the Form for Filing Notice of Objection found on our website; or
    Submitting a letter or an e-mail.
    Even if you object to the assessment, you must still pay the tax within one month. Penalties
    will be imposed if the tax remains unpaid after the due date.

    D
    There are many e-Services available at myTax Portal
    that you can use at your convenience. myTax Portal
    is a secure channel and is available round the clock.
    Many taxpayers have enjoyed using these e-Services
    to file their taxes and check their transaction statuses.

    e-Services
    the Best Way
    to File
    TAXand
    BILL
    Check Company
    Tax Matters

    RLY to do
    EAwant
    WhatYyou
    INCOM

    Before you can access the e-Services at myTax


    Portal, you must first authorise yourself, your staff
    or a 3rd party (your tax agent) via the e-Services
    Authorisation System (EASY).
    To do that, please have the following on hand:
    Companys tax reference number
    (e.g. 201499999M, T14FC9999B, A1234567Z)
    Companys e-Services Access Code
    Personal tax reference number
    (e.g. S1234567Z, G1234567Z)
    SingPass or IRAS PIN
    These are the e-Services that are available at myTax Portal:
    Type of e-Service

    File your taxes

    1)
    2)
    3)

    Check your tax assessment

    4) View Return Status 1


    5) View Correspondence/ Notices
    6) View Donations

    Object to your tax assessment

    7) Object/ Revise Assessment

    Check how much you owe


    IRAS

    8) View Account Summary and Payment


    9) View Payment Plan

    Apply for Productivity and


    Innovation Credit (PIC) Cash
    Payout/ Check PIC Cash
    Payout status

    10) Apply for PIC Cash Payout


    11) View PIC Cash Payout Application Status
    12) View PIC Cash Payout Correspondence/
    Notices

    Others

    13) Apply for Waiver of Income Tax Return


    (Form C-S/ C) Submission by a
    Dormant Company
    14) Apply for Certificate of Residence (COR)
    15) S45 Withholding Tax e-Filing
    16) e-Submission of Employment Income
    17) Corporate Profile/ Contacts & Alerts

    IRAS

    File Estimated Chargeable income (ECI)


    File Income Tax Return (Form C-S/ C)
    File Income Tax Return (Form for Dormant
    Company)

    Check out our website for detailed user guides on


    these e-Services.

    For companies to view the submission and processing status


    of their ECI and/ or Form C-S/ C filed.

    TAX
    BILL

    Tax Exemption Scheme for New Start-up


    Companies
    For each of the companys first three consecutive YAs,
    qualifying companies can enjoy:

    Full tax exemption on the first $100,000 of


    chargeable income; and

    IRAS

    $200,000

    tax exemption on the next


    $200,000 of chargeable income.
    50% tax
    exemption

    $100,000

    A further 50%

    Full tax
    exemption

    From the fourth YA onwards,


    companies can enjoy the partial
    tax exemption (explained below).
    Note:
    Abuse of this scheme
    through the set up of
    shell companies is an
    offence punishable
    under the law. The
    Court imposes severe
    penalties for such
    offences.

    Chargeable Income

    Partial Tax Exemption (PTE)


    All companies can enjoy PTE, unless they have already
    claimed the Tax Exemption Scheme for New Start-Up
    Companies. Qualifying companies can enjoy:

    75% tax exemption on the first $10,000 of

    chargeable income; and

    tax exemption on the next


    $290,000 of chargeable income.
    $290,000

    A further 50%

    50% tax
    exemption

    $10,000

    Common Tax
    Reliefs that
    HelpYEReduce
    ARLY
    ME
    INCOBill
    the Tax

    75% tax
    exemption

    Chargeable Income

    Expenses Incurred Before Commencement of Business


    Only expenses incurred after your business commences are deductible for tax purposes.
    To assist businesses in enterprise development, revenue expenses incurred one year
    before the first day of the financial year in which you earn your first dollar of business
    receipt will be tax-deductible.
    For example, your company was incorporated on 1 Jul 2014 and has a Dec year-end.
    Assuming it earned its first dollar of business receipt on 1 Sep 2016 (relates to YA
    2017), the revenue expenses incurred during the period 1 Jan 2015 to 31 Dec 2015
    (i.e. one year before 1 Jan 2016, which is the first day of the financial year in which
    your company earned its first dollar) will also be tax-deductible in YA 2017.
    For YA 2016, the company should file a nil return since the company has not
    commenced its business yet.
    EXAMPLE:
    1 Jan 2016
    (First day of the
    financial year)

    Company
    incorporated
    on 1 Jul 2014
    1 Jan
    2015

    31 Dec
    2015

    1 Sept 2016
    (First dollar
    of business
    receipt)
    31 Dec
    2016

    REVENUE EXPENSES INCURRED


    ARE TAX-DEDUCTIBLE IN YA 2017
    Expenses incurred from 1 Jul 2014 to
    31 Dec 2014 are not tax-deductible

    revenue EXpenses INCURRED

    Capital Allowances (CA)


    You can claim CA on fixed assets such as office equipment, electrical equipment,
    furniture and fixtures that are bought and used in your trade or business. CA is given
    in place of depreciation which is not tax-deductible.
    More information is available on the IRAS website.

    Fixed assets

    F
    YEARLYE
    INCOM

    Employers
    Responsibility
    to Report
    Employees
    Yearly
    IRAS
    Earnings

    As an employer, you have to issue


    to each employee a statement of his
    remuneration (Form IR8A and where
    applicable, Appendix 8A, Appendix 8B
    and Form IR8S) by 1 Mar every year
    for his income tax filing.

    Auto-Inclusion
    Scheme
    for Employment
    Income
    If you join the AIS for Employment
    Income, you will submit your employees
    remuneration information electronically
    to IRAS and the information will be autoincluded in your employees tax returns.
    The AIS offers the following benefits:
    You do not need to issue the Form IR8A
    and where applicable, Appendix 8A,
    Appendix 8B and Form IR8S to your
    employees. However, you can still give
    your employees a statement of earnings
    for their reference
    A simpler tax filing process for your
    employees
    From YA 2016, companies with 11 or
    more employees are required to join the
    AIS. If your company has fewer than 11
    employees, we encourage you to join the
    AIS now to enjoy the benefits.
    To join AIS, simply complete and send the
    AIS application form to IRAS.
    For more information, please refer to the
    IRAS website.

    G
    Seminars

    IRAS
    IRAS
    Services at
    a Glance

    IRAS conducts free one-day Corporate Income Tax


    seminars on tax obligations and common tax relief
    schemes annually from June to November. Do sign up
    to learn more about how to fulfill your tax obligations!
    Find out more about the seminar dates and
    registration details on the IRAS website.

    Contact Details

    For more information, please refer to:


    IRAS Website - iras.gov.sg
    If you need further assistance, please contact us at:
    Email
    [email protected] for Corporate Tax Matters;
    [email protected] for Auto-Inclusion Scheme
    Helpline (Mon to Fri, 8 a.m. - 5 p.m.)
    1800-356 8622 for Corporate Tax Matters;
    1800-356 8015 for Auto-Inclusion Scheme

    This information aims to provide a better general understanding


    of taxpayers tax obligations and is not intended to
    comprehensively address all possible tax issues that may arise.
    This information is correct as at 1 Oct 2015. While every effort
    has been made to ensure that this information is consistent with
    existing law and practice, should there be any changes, IRAS
    reserves the right to vary our position accordingly.

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