All companies doing business in Singapore are required to report their income by filing an annual tax return with the IRAS within the statutory deadlines and in accordance with the approved tax reporting forms.
Types of tax returns
There are two main types of tax returns in Singapore:
Forms C-S or Form C are company tax returns on the company's actual income for the financial reporting period.
Beginning in fiscal year 2020, electronic filing of Form C-S / C is mandatory for all companies. Companies are required to file Form C-S / C tax returns even if they incur losses.
Simplified tax return form: Form C-S
Beginning in 2012, to simplify the tax filing process for small businesses, the Internal Revenue Authority of Singapore (IRAS) introduced a simplified Form C-S tax return for small companies.
Form C-S includes:
There is no need to file supporting documents for this form without a request from IRAS. Also qualifying companies are not required to file financial statements and tax computation when filing the return.
Prerequisites for filing Form C-S
As of 2017, companies are eligible to file Form C-S if they meet all of the following conditions:
Keep in mind that despite all these exemptions, companies are in any case required to prepare all necessary financial statements and tax calculations and submit them to the Internal Revenue Authority of Singapore (IRAS) upon request.
Simplified tax return form: Form C-S (Lite)
To further simplify the filing of tax returns for very small businesses, companies which meet all the filing requirements for Form C-S and have an annual income of SGD 200,000 or less can file Form C-S (Lite).
Form C-S (Lite) is a simplified version of Form C-S, with only six basic fields that need to be completed for companies dealing with simple tax issues.
Companies that do not qualify for Form C-S must file Form C along with their financial statements, tax calculations and supporting schedules.
Standard Tax Return Form: Form C
If your company does not qualify to file a simplified C-S or C-S (Lite) return, you must file a Form C tax return.
Along with your Form C, you will need to provide your company's financial statements, a Detailed Statement of Company Profit and Loss, a Tax Estimate, and the necessary supporting tables.
How to know what type of tax returns to prepare
The IRAS Singapore Revenue Authority sends companies a letter notifying them to electronically file a Form C-S or Form C by May of each year, beginning with the second year following the company's year of incorporation.
Tax return deadlines in Singapore
From fiscal year 2021 all companies are required to file their corporate tax returns electronically by November 30 of each calendar year.
What is the risk of violating the deadline for filing tax returns
If a company fails to file Form C-S / C by the statutory deadline, IRAS can issue a Notice of Assessment (NOA) based on the company's provisional income assessment.
If the company does not agree with the IRAS assessment, it can file an electronic appeal within two months of the date the NOA is issued.
When filing an objection, the company must file an income tax return (Form C-S / C). Otherwise, the assessment cannot be revised, even if an objection has been filed.
Keep in mind that whether you file an appeal or not, you are still required to pay the tax calculated in the Notice of Assessment (NOA) within one month of the date the NOA is issued.
If you need assistance in preparing and filing your financial and tax returns, as well as individual and corporate tax returns in Singapore, the RSBSS specialists are here to help you.
There are two main types of tax returns in Singapore:
- Simplified C-S tax return form
- Standard Tax Return Form C
Forms C-S or Form C are company tax returns on the company's actual income for the financial reporting period.
Beginning in fiscal year 2020, electronic filing of Form C-S / C is mandatory for all companies. Companies are required to file Form C-S / C tax returns even if they incur losses.
Simplified tax return form: Form C-S
Beginning in 2012, to simplify the tax filing process for small businesses, the Internal Revenue Authority of Singapore (IRAS) introduced a simplified Form C-S tax return for small companies.
Form C-S includes:
- A declaration of the company's financial solvency
- Information on tax adjustments; and
- Information from the company's financial statements.
There is no need to file supporting documents for this form without a request from IRAS. Also qualifying companies are not required to file financial statements and tax computation when filing the return.
Prerequisites for filing Form C-S
As of 2017, companies are eligible to file Form C-S if they meet all of the following conditions:
- The company must be registered in Singapore
- The company must have annual income of SGD 5 million or less
- The company only earns profits taxable at the current corporate tax rate of 17%
- The Company does not claim the following tax deductions for the financial year under review:
- Profit/loss carryover from the current year to the next reporting period
- Tax exemptions for group companies
- Investment allowance
- Foreign tax credit and withholding tax.
Keep in mind that despite all these exemptions, companies are in any case required to prepare all necessary financial statements and tax calculations and submit them to the Internal Revenue Authority of Singapore (IRAS) upon request.
Simplified tax return form: Form C-S (Lite)
To further simplify the filing of tax returns for very small businesses, companies which meet all the filing requirements for Form C-S and have an annual income of SGD 200,000 or less can file Form C-S (Lite).
Form C-S (Lite) is a simplified version of Form C-S, with only six basic fields that need to be completed for companies dealing with simple tax issues.
Companies that do not qualify for Form C-S must file Form C along with their financial statements, tax calculations and supporting schedules.
Standard Tax Return Form: Form C
If your company does not qualify to file a simplified C-S or C-S (Lite) return, you must file a Form C tax return.
Along with your Form C, you will need to provide your company's financial statements, a Detailed Statement of Company Profit and Loss, a Tax Estimate, and the necessary supporting tables.
How to know what type of tax returns to prepare
The IRAS Singapore Revenue Authority sends companies a letter notifying them to electronically file a Form C-S or Form C by May of each year, beginning with the second year following the company's year of incorporation.
Tax return deadlines in Singapore
From fiscal year 2021 all companies are required to file their corporate tax returns electronically by November 30 of each calendar year.
What is the risk of violating the deadline for filing tax returns
If a company fails to file Form C-S / C by the statutory deadline, IRAS can issue a Notice of Assessment (NOA) based on the company's provisional income assessment.
If the company does not agree with the IRAS assessment, it can file an electronic appeal within two months of the date the NOA is issued.
When filing an objection, the company must file an income tax return (Form C-S / C). Otherwise, the assessment cannot be revised, even if an objection has been filed.
Keep in mind that whether you file an appeal or not, you are still required to pay the tax calculated in the Notice of Assessment (NOA) within one month of the date the NOA is issued.
If you need assistance in preparing and filing your financial and tax returns, as well as individual and corporate tax returns in Singapore, the RSBSS specialists are here to help you.