Companies in Singapore must pay their corporate taxes, but they also need to file them before making payment.
How does the filing process go, especially if you are unfamiliar with the procedure? It can be confusing if you are not a tax expert, or if you have not done this before.
There are certain guidelines that businesses must adhere to as they file their corporate tax in Singapore. We take you through the corporate tax filing process below.
How is Corporate Income Taxed in Singapore?
Firms in Singapore are taxed on their chargeable income, which is the taxable revenues after removing permitted expenses and other allowances.
Taxable income can be a company’s profits from:
- Their business
- Investment income (dividends or interest)
- Other revenue gains
How Do I File Corporate Tax in Singapore?
Filing your corporate income taxes in Singapore involves a few steps, starting from your estimated chargeable income filing to making payment.
We look at these steps:
File Your Estimated Chargeable Income (ECI)
When you pay your corporate income taxes in Singapore, you should start with filing your ECI form. It is an estimate of your business’ profits that can be taxed after subtracting the tax-allowable expenses for a Year of Assessment (YA).
Some companies will be exempt from filing the ECI form, so they can skip this step.
Does My Company Need to File the ECI?
Typically, firms in Singapore must file their ECI within 3 months after the end of a financial year, unless they qualify for the filing waiver or are specifically not required to do so.
Businesses with yearly revenue of S$5 million or below with no estimated chargeable income for the YA do not have to file their ECI.
Companies that belong to any of these categories are also exempt from ECI filing:
- Foreign universities
- Approved CPF unit trusts and allocated unit trusts
- Real estate investment trusts given the tax treatment under Section 43(2) of the Income Tax Act of 1947, whereby if the stated condition is fulfilled, a lower tax rate or no taxes will be charged
- Overseas ship owners or charterers who have, or will submit the Shipping Return through their Singapore shipping agent
- Special cases that have been allowed the waiver
How Do I Calculate the ECI?
An important point to note is that you must not include the tax exemption for new start-up businesses or partial tax exemption when filing your ECI.
It is because IRAS will do so and compute the amount automatically. Remember to indicate if your business qualifies for the income tax exemption scheme for new start-ups in the digital service, File ECI.
How Do I File the ECI?
Before you file your ECI, you must ensure that you are appointed by your company as an ‘Approver’ for Corporate Tax in Corppass.
You should also prepare your firm’s UEN or Entity ID, and your Singpass.
Head to the IRAS myTax portal to begin filing, and remember to declare your business’ revenue at the same time.
File Your Yearly Corporate Income Tax Return
Proceed with filing your company’s income tax return after filing your ECI form.
Companies in Singapore must file their annual corporate tax return, which reflects their real income. They have to file their returns under either of these 3 options:
- Form C-S
- Form C-S (Lite)
- Form C
Form C-S and Form C-S (Lite) are more simplified versions of Form C, where companies are not required to submit their financial statements and tax computation.
They only apply to companies incorporated in Singapore with yearly revenue of S$5 million and below (Form C-S) or S$200,000 and below (Form C-S (Lite)).
These businesses must also be taxed at the current corporate income tax rate of 17% and are not claiming specified special schemes in the YA.
When is the Corporate Tax Filing Deadline?
The corporate tax filing deadline is 30 November.
Singapore files corporate tax returns on a preceding year basis. Hence, for YA 2023, this will refer to the basis period between 1 Jan 2022 to 31 Dec 2022.
Obtain a Notice of Assessment (NOA) From IRAS
After you have filed your ECI and corporate tax returns, IRAS will review them and issue your business with an NOA by 31 May of the next year.
The NOA is a comprehensive statement of your company’s tax liabilities. At the same time, it is a chance for your business to object to its tax assessment if it wants to.
Pay Your Corporate Income Tax
Once your company has determined that it does not have any objections and is agreeable to the assessed corporate tax, it must make payment within 30 days.
What Payment Methods Are Available for Paying Corporate Tax?
There are several payment options for companies paying their corporate income taxes:
- GIRO (preferred method for payments and refunds with up to 10 months of interest-free installments)
- PayNow QR
- Internet Banking Bill Payment
- Internet Banking Fund Transfer
- Telegraphic Transfer
Let a Trusted Team of Tax Experts Take Care of Your Corporate Tax Filing
Nobody wishes to risk non-compliance and getting penalised in any manner. Many companies that lack competent staff to file their corporate taxes choose to outsource to a third-party taxation professional.
InCorp’s taxation team has handled numerous corporate tax filings for different types of businesses, and we are well-positioned to help you with yours!
Frequently Asked Questions About Filing Corporate Taxes in Singapore
- Yes, businesses in Singapore must file their corporate taxes regardless of tax residency.
- The deadline for FYE 2022 will be 30 Nov 2023.
- No, all companies in Singapore must do so electronically.