Services

Taxation

All Singapore incorporated companies has to submit Income Tax Return (Form C / C-S and appendices) together with the corporate income tax computation and financial report to IRAS annually. We can assist the company prepare the income tax computation and the necessary schedules related thereto, for submission to IRAS. We shall also correspond with IRAS on behalf of the company in relation to company’s income tax affairs.

Singapore Accounting Services

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Local Tax Experts

1. Singapore's tax environment is structured yet intricate, with various incentives, exemptions, and specific requirements tailored to different business types and industries. Our local Tax experts bring specialized knowledge of these regulations, ensuring that businesses remain compliant with the latest tax laws. This expertise is crucial for navigating tax filings accurately and efficiently, avoiding common pitfalls that could lead to penalties or audits.

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Optimizing Tax Allowances and Incentives

Our skilled tax experts can identify opportunities for tax savings that a business might overlook. This includes optimizing tax incentives, identifying relevant deductions, and strategic tax planning that aligns with the company's growth objectives. Effective tax planning can significantly reduce a company's tax liability, thereby enhancing its profitability and cash flow. For small and medium enterprises (SMEs) in Singapore, where margins can be tight, these savings are particularly valuable.

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Time and Resource Optimization

Managing tax obligations can be time-consuming, requiring significant resources that could otherwise be allocated to core business operations. By outsourcing this function to a local tax expert, businesses can focus on their primary objectives, like growth and innovation, while ensuring that their tax affairs are handled by professionals. This not only improves operational efficiency but also mitigates the risk of errors that could arise from managing tax matters in-house without sufficient expertise.

FAQs on ECI

Frequently Asked Question on ECI

ECI is an estimate of a company’s chargeable income (i.e., taxable income) for a Year of Assessment (YA). It must be declared within three months from the end of the company’s financial year. The Inland Revenue Authority of Singapore (IRAS) uses it to assess preliminary taxes which need to be paid in advance.

All Singapore-registered companies are required to file ECI within three months after the end of their financial year, except for those that meet specific criteria for waiver. For example, a waiver may be granted if the company’s annual revenue is not more than S$5 million for the financial year, and its ECI is nil for the YA.

If your company is required to file its ECI but fails to do so within 3 months from the end of its financial year, a Notice of Assessment may be issued based on an estimation of your company’s income. Such assessments may not reflect the actual tax liability, and companies may need to pay more tax upfront.

IRAS will send a Notice of Assessment (NOA) or a letter informing the company of the taxes to be paid. If ECI was submitted and accepted, IRAS will also provide details on the tax instalment plan if the company is eligible for instalment payments.

Yes, companies that submit their ECI early and have taxes to pay may qualify for an instalment plan. The earlier the ECI is filed within the three-month period after the financial year-end, the more instalments a company may be granted, helping to ease cash flow.

FAQs on Corporate Tax

Frequently Asked Question on Corporate Tax

The deadline for filing corporate tax returns (Form C-S/ C) in Singapore is November 30th of the year following the financial year end. For example, for the financial year ending December 31, 2022, the tax return should be filed by November 30, 2023.

IRAS may take the following enforcement actions if you fail to file by the due date:

  • Issue an estimated Notice of Assessment. You must pay the estimated tax within 1 month
  • Offer to compound the offence
  • Issue a Section 65B(3) notice to your company director to submit the required information in the Corporate Income Tax Returns to IRAS
  • Summon the company or persons responsible for running of the company (including the directors) to Court

Yes. A penalty of 5% will be imposed on the unpaid tax if the tax is not paid by the due date. A further 1% penalty may be added for each additional month the tax remains unpaid, up to a maximum of 12% additional penalty.

For current YA, a request may be made online via the IRAS Tax portal. You can only apply for extension for the current YA after 30 November.

However, if a summons to attend Court has been issued, filing extensions are not allowed. Failure to attend Court may result in further legal actions.

For previous YA, IRAS will not grant filing extensions, as the returns are long overdue.

If your company discovers errors in the tax return after submission, it should file an amended return as soon as possible to avoid potential penalties for underreporting income.

For corporate tax filing, companies should prepare their financial statements, tax computation and supporting schedules, and other relevant documents such as detailed profit and loss statements, records of fixed assets, and information on foreign income, if applicable.

Yes. Form C-S is a simplified tax return for companies with revenue not exceeding S$5 million for the financial year and only derive income taxable at the prevailing corporate tax rate.

Form C, which requires more information, is for companies that do not qualify for Form C-S filing, and these companies must submit their financial statements, tax computations, and other supporting documents along with the Form C.

Remember, while these FAQs cover basic aspects of corporate tax compliance in Singapore, tax regulations and practices can change. It’s advisable to consult a professional tax advisor for the most current information and personalized advice.

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    Office Address

    60 Paya Lebar Road, #11-19, Paya Lebar Square, Singapore 409051

    Telephone

    +65 8893 3960

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    enquiry@yycadvisors.com.sg