Every year, as corporate tax season swings around, companies must engage in a time-consuming, complex, and tedious process.
It is essential for companies to file their corporate income tax returns timely and accurately to ensure that they stay compliant with regulatory rules under the Inland Revenue Authority of Singapore (IRAS).
They must also do so to make the most of the tax incentives and exemptions that the Singapore government has generously provided to reduce their tax obligations.
Outsourcing corporate tax filing to experts can help time-strapped executives free themselves of these mundane work and focus on revenue-generating core business areas instead.
In this blog, we take a look at 5 different reasons to outsource your company’s tax compliance to 3rd-party experts.
Inside This Article:
Why Should You Outsource Your Company’s Tax Filing?
Outsourcing the filing of corporate income taxes, such as the Estimated Chargeable Income (ECI) and and Form C-S/C-S (Lite)/C, offers several benefits for businesses. By leveraging the expertise and experience of professional accounting firms, companies can enjoy the following advantages:
Reduces Compliance Risk to Avoid Penalties
Singapore has ever-evolving corporate tax laws that continue to change to meet different national objectives and industry trends. These changes are usually announced in every year’s Budget statement.
In-house accounting and finance executives have a lot on their plate to manage – it is a struggle to stay informed of these amendments while meeting their financial duties and obligations to the companies.
Outsourced tax filing service companies have teams of experienced industry experts who are well-versed in this field. Sizeable and reputable firms will also be able to provide valuable advice on how new tax regulations will affect customers from various industries and offer effective steps to take.
This means that you can easily tap into the knowledge of these tax professionals with the assurance that they are fully capable of helping you achieve tax compliance with local laws, especially for foreign companies who are unfamiliar with the tax landscape.
Streamlines Data Collection
A company’s financial year end (FYE) is typically the busiest season for in-house accounting and finance executives. They must gather all financial data from the previous year, plan budgets for the upcoming year, and ensure timely filing of corporate tax paperwork.
However, due to the overwhelming workload during this period, it may not always be feasible for these departments to collect all the necessary data to maximise tax savings. They might only be able to compile the essential information before they close the financial statements.
Outsourcing tax preparation saves time and resources and ensures that the necessary information is organised and readily available when needed. This approach enables companies to meet tax deadlines efficiently while benefiting from the expertise and experience of external professionals.
Boosts Data Accuracy
The accountants involved in corporate taxes filing must have deep knowledge of Singapore’s taxation laws to be prepared against different situations that may occur throughout the accounting year. Apart from that, they must also have keen attention to detail to ensure that all figures are accurate.
For many companies in Singapore, having this level of detail and precision may not be possible given the day-to-day tasks that they must undertake.
Having an outsourced corporate tax filing team assist your business can help to reduce potential errors while keeping to filing deadlines by submitting documents on time.
Protects Important Tax Data
Companies can find it tricky to ensure that sensitive tax data can be assessed and protected at the same time. When the busy corporate tax season comes around, they need to be able to obtain the data on-the-go to meet filing deadlines.
They may leave the data vulnerable and susceptible to cyber hacks and data theft by using their own devices or unsecured networks as a result. Engaging an outsourced specialist with a wide customer base means that you put your data in the safety of a provider who likely has strong data protection systems.
Therefore, an outsourced provider such as InCorp can be a safer option for companies who are concerned about their key data being compromised, while still maintaining control over the financial data.
Leverage on Professionals and Technology
Outsourced tax providers often use advanced tax software and tools that streamline the tax filing process. By outsourcing, businesses can benefit from these technological advancements without having to make significant financial investments themselves.
In addition, they can also leverage the skills and expertise of tax professionals without spending money on employee training or upgrading.
InCorp Can Help You Ease the Corporate Tax Filing Process
At InCorp, we have a team of highly competent corporate tax specialists who can take over your tax filing obligations. By doing so, you can expect to enjoy increased profitability and productivity for your employees, focusing on core offerings that drive business.
FAQs
- The prevailing corporate tax rate is 17%, although the actual rate charged may be lower due to tax incentives.
- You can get our team of corporate tax specialists to better advise you on the applicable schemes when you outsource to us.
- It is due by 30 November of every year.
Leave it to the Experts
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