IRAS is Making It Easier for Smaller Companies to File Their Taxes
The Inland Revenue Authority of Singapore (IRAS) is making it easier for smaller companies to file their taxes this year.
How Filing Taxes Will Be Easier
Smaller companies can use a simplified version of the tax form called Form C-S (Lite). This will have fewer fields that need to be filled in. There will also be a system that allows direct filing from your company’s accounting software.
IRAS is also preparing digitised notices for companies that will be commencing soon. If your company has an annual revenue that is less than $200,00, you can use the new Lite form. This will be subject to other criteria.
Overall, about 60,000 small and medium enterprises are set to benefit from this simplified tax system. If your firm’s tax matters are straightforward, you only need to complete six essential fields. These fields include your net profit, revenue, and loss.
Digital solutions are now available with the SMECEN software.
Other Perks of the Simplified Tax System
Another benefit that smaller companies will gain from this simplified system the exemption they will get. Companies that qualify will be exempt from submitting their tax computations and financial statements. You will still need to prepare the required documents that IRAS requests.
Besides the easier way to file taxes, companies in Singapore can also pay taxes using the PayNow QR system. You will receive real-time updates on your outstanding balances.
PayNow Corporate will also be introduced mid next year. Companies will receive their tax refunds within seven days from their credit arising. You will need to link your Unique Entity Number to your corporate bank account to be eligible. This can be done through internet banking.
By going digital and making it easier for smaller firms in Singapore to file taxes, SMEs will always have convenient access to all the essential information they need. This will help them make better-informed business decisions. E-filing taxes is compulsory beginning this year for all companies. This includes companies with no business activities and those in a loss position.
All taxes must be filed by 15 December.