If you are operating a business in Singapore, you must file the corporate tax return to IRAS on an annual basis (i.e. by 30 November).
As with any other country, filing corporate taxes in Singapore can be a complicated process for new business owners.
There are many tax rules you must understand and follow, and the tax language isn’t the easiest to navigate on your own.
You should also be aware what were discussed in the latest Budget on corporate tax affecting to businesses.
Should you make a mistake, you may find yourself in non-compliance with the Singapore tax rules, which could result in hefty penalties for the business.
There are many Tax Accountants (who are also Chartered Accountants) in Singapore who offer tax filing compliance services for companies incorporated in Singapore.
The Chartered Accountants will assist your business to prepare the corporate tax documentation, and ensure that the tax returns follow Singapore tax rules.
When you are engaging a Professional Accounting Firm to assist in corporate tax matters, you may want to check that they specialise in corporate taxes, and do a significant amount of their business working with IRAS tax officers.
1. Preparing and Filing Estimated Chargeable Income (ECI)
What is the Estimated Chargeable Income?
Estimated Chargeable Income (ECI) means that a tax accountant assists you to make an estimate of your company’s income for the preceding financial year ended.
The ECI is the first step in filing your corporate taxes.
You should file the ECI with the Inland Revenue Authority of Singapore (IRAS) within three (3) months after the end of preceding financial year.
2. Preparing and Filing Annual Corporate Tax Returns
Easily the most intimidating aspect of handling your own company’s corporate taxes is preparing and filing your corporate tax returns (i.e. Filing Form C / Form C-S).
This matter is especially true if you are a foreigner or new business owner who are not familiar with Singapore Tax rules (i.e. What is not taxable? What is tax deductible? What is the tax exemption? What are taxable and non-taxable supplies? etc.)
Corporate tax return preparing and filing is a complicated process as it involves an understanding of Singapore tax rules and professional judgements on certain areas.
Seeking help from a Chartered Accountant or Tax Accountant makes the process both easier and simpler for business owners.
3. Reading Notice of Assessments (NOA) issued by IRAS
Should IRAS decide to issue you a Notice of Assessment (NOA), you will likely need some help interpreting what it is saying and what actions you will need to take.
An experienced CA will be able to navigate this for you and make certain you take any necessary measures.
4. Answering Queries from IRAS
After we have filed the taxes for you, IRAS may need further clarification.
Our tax team will assist you to answer IRAS queries.
In addition to our extensive knowledge of Singapore tax law, we are very familiar with how IRAS functions, which provides a much smoother process than you handle the queries on your own.
Let us assist your business in complying with Singapore Income Tax Act and overcoming the tax challenges.
Should you need assistance or would like to find out more about Tax Services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our business advisor will contact you.