Guide to Corporate Tax Filing Procedure in Singapore

Guide to Singapore Corporate Tax Filing Procedure

Singapore’s corporate tax regimes are considered one of the in Asia. Companies are required to handle tax matters in accordance with specific procedures, and failure to do so may result in from the Inland Revenue Authority of Singapore (IRAS).

 This guide simplifies the key steps of Singapore’s corporate tax structure, requirements, deadlines, and tax benefits to help companies understand how corporate tax filing works in Singapore.

 

Overview of Singapore Corporate Tax

Singapore operates a territorial tax system, which means companies are taxed on income earned in Singapore and on foreign income remitted into the country.

With a low flat corporate tax rate of 17% and a transparent regulatory framework, Singapore remains one of the most business-friendly locations in Asia. Understanding the corporate tax filing process in Singapore is essential for smooth compliance.

 

Key Requirements for Corporate Tax Filing in Singapore

Under Singapore’s Income Tax Act, all companies must pay Singapore corporate tax on chargeable income made from Singapore or foreign income remitted into Singapore.

However, tax-resident companies in Singapore enjoy special benefits such as:

1. Avoiding double taxation

 If a company has been taxed on income in a foreign country under any Avoidance of Double Taxation Agreements (DTAs) signed with Singapore, it is eligible for tax exemption or reduction. Alternatively, if the company has been taxed on income in Singapore, it may claim a tax exemption or reduction in the foreign country.

2. Tax exemptions on foreign dividends

This applies to any foreign dividends, foreign branch profits, or service income that has already been subject to corporate tax in a foreign country with a corporate tax rate of at least 15%. Additionally, the IRAS must consider the tax exemptions to be beneficial to the company.

3. Start-Up Tax Exemption Scheme 

The first three years of assessment (YA) for a newly incorporated company qualify for tax exemptions under this scheme. The scheme provides 100% tax exemption on the first chargeable income of SGD$100,000 and a further 50% tax exemption on the next SGD$200,000. 

The year of assessment (YA) refers to the 12 months during which a company’s income is assessed. To become a tax-resident company, your company must have exercised its control and management in Singapore for the preceding year of assessment (YA).

 

Corporate Tax Filing Deadlines in Singapore

The deadlines that companies must follow when filing Singapore corporate tax are:

• 15 December: if filing online
• 30 November: if physically filing the Income Tax Return

 

However, from YA 2020 onwards, physical filing will be completely phased out, and all companies must file their corporate tax documents online.

Failure to meet the deadlines for filing Singapore corporate tax is an offence, and late filing may be subject to fines of up to SGD$10,000. The company’s officers and directors may also be prosecuted in court.

 

How Much is Singapore’s Corporate Tax Rate?

Singapore corporate tax rate is levied at a flat rate of 17% on chargeable income.

Chargeable income can be calculated by taking a company’s taxable revenues and subtracting deductible expenses, which refer to expenses that are “wholly and exclusively incurred … in the production of income”.

The company must be able to explain why the expenditure was necessary to earn the income. For more information on deductible expenses and other detailed tax information, it is advised to visit the IRAS website.

A company may receive capital allowances (tax relief on physical or tangible capital assets the company acquires) in the form of additional tax deductions to cover the cost of paying off machinery or plant purchased for its business purposes.

 

How to File Corporate Tax in Singapore (Step-by-Step procedures)

Singapore’s corporate tax filing process is structured, efficient, and strictly regulated by IRAS. To help businesses stay compliant, every company must follow a series of mandatory steps, including ECI filing, annual tax return submission, and timely tax payment.

Step 1: File the Estimated Chargeable Income (ECI) form online
All Singaporean companies are required to file the ECI form, which will help provide estimates of the company’s chargeable income to the IRAS. This has to be done through myTax Portal on IRAS’ website within 3 months of the financial year-end. 
However, companies are exempted from this procedure if their annual revenue is less than S$5 million and no estimated chargeable income for that YA can be provided.

Step 2: File annual Income Tax Return
This is also done via the myTax Portal, and all companies, even those making losses, under liquidation, or awaiting striking off, must file their annual Income Tax Return. 
The Income Tax Return provides a report of the company’s actual income rather than the ECI, which is an estimate. Most Income Tax Returns are filed using Form C and require the submission of paperwork such as financial statements, tax computations, and supporting schedules. 
A company may submit a simplified Form C-S if they meet the following requirements:

• Is incorporated in Singapore.
• Has an annual revenue of S$5 million or less.
• Income is taxed at the standard corporate tax rate of 17% and not at reduced tax rates.
• Not claiming under special schemes (e.g. investment allowances, foreign tax credits).

Dormant companies may also submit a simplified Form C-S/C for a Dormant Company instead of the standard Income Tax Return form.

Step 3: Wait and receive IRAS’ Notice of Assessment (NoA)
After the IRAS has reviewed the submitted forms, it will issue a Notice of Assessment (NoA) to the company by 31 May of the following year. 
The NoA contains a detailed statement of the company’s tax liabilities and represents an opportunity for the company to raise an objection to IRAS’sIRAS’ tax assessment.

Step 4: Pay the assessed corporate tax
If there are no issues with the tax assessment, the company must pay the assessed Singapore corporate tax within 30 days of the date the NoA is issued. 
Payment can be made via most payment methods, including interbank GIRO, internet banking, cheque, or telegraphic transfer.

 

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