Income Tax Services
In Singapore, a company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2014 will be taxed in 2015. The current prevailing corporate income tax rate is 17%.
Singapore do not impose taxation on capital gain.
Basis Period and Year of Assessment
In tax terms, using the same example as above, 2015 is the Year of Assessment (YA). In other words, the YA is the year in which your income is assessed to tax.
To assess the amount of tax, IRAS looks at the income, expenses, etc. during the financial year. This financial year is known as the “basis period”.
The basis period is generally a 12-month period preceding the YA.
Income Tax Submission | Filing
Every year, companies need to submit two corporate income tax forms to IRAS:
- Estimated Chargeable Income (ECI) form within 3 months from the company’s financial year end except for (a) companies that fulfil the conditions under the Administrative Concession; and (b) certain entities that are not required to file ECI; and
- Corporate Income Tax Returns, commonly known as Form C-S or Form C by 30 Nov of each year. Dormant companies for which IRAS has waived the requirement to file is exempted from filing Income Tax Returns.
New companies are entitled to a tax exemption of 100% and 50% on the first S$100,000 chargeable income and the next S$200,000 chargeable income respectively, for the first 3 YA subject to certain requirements.
Companies can continue to be entitled to a partial tax exemption of 75% and 50% on the first S$10,000 chargeable income and the next S$290,000 chargeable income respectively subject to certain requirements.
Certain industries like international trading are entitled to concessionary tax rate of as low as 5% subject to approval of Ministry of Finance. Application can be submitted to International Enterprise (IE) Singapore.
AG’s Income Tax Services
We are Accredited Tax Practitioners (Income Tax) registered with Singapore Institute of Accredited Tax Professional (SIATP). We provide reliable income tax services like tax consultation, planning, computation and filing for our clients to ensure compliance with Income Tax Act and to maximise our clients’ tax benefits.