Tax Filing Services in Singapore

Tax Filing Services in Singapore: A Closer Look

Singapore, the city state in Southeast Asia has become one of the most attractive international businesses destinations due to its strategic location and favorable tax climate. It’s a real wonder how with such low tax rates, Singapore has built such an enviable industry and business infrastructure considered at par with the world’s leading economies.

The city state with a transparent and non- bureaucratic administrative and business climate makes the most appropriate and effective use of taxes collected for developing itself into a robust and vibrant economy. In Singapore, a quasi-territorial tax system is normally followed and Corporate Tax Filing Services in Singapore are becoming increasingly popular.

Inland Revenue Authority of Singapore (IRAS) levies income tax on earned incomes by individuals and the corporates in accordance with prevailing income tax act. Timely preparation and filing of tax returns are mandatory in Singapore and any non-compliance usually attracts civil and financial penalties.

Types of Taxes in Singapore

Following are the taxes applicable in Singapore and tax filing services in Singapore can help you segregate and compute your tax liabilities.

  • Corporate Tax
  • Personal Tax
  • Miscellaneous Taxes
  • Goods and Services Tax (GST)
  • Customs and Excise Duty
  • Stamp Duty
  • Property Tax

Tax Forms in Singapore

You need to use the right forms to file your taxes in Singapore. There are two forms that companies can use to declare their income for tax filing purposes.

All companies must select either Form C or form C-S and accurately fill the form to provide complete and accurate income of the company and tax filing services in Singapore always be of help in the right selection.

Form C is a simplified tax returns form with 50% of information similar to form C-S. For being eligible to fill form C-S, companies need to be

  • Incorporated in Singapore
  • Having an annual revenue not exceeding S$ 5 million
  • Nor claiming foreign tax credit and tax deducted at source, group relief and investment analysis

All companies for 2020 YA compulsorily do e- filing of tax returns and by 15th December, 2020, and Tax Filing Services in Singapore come in handy in this regard.

Tax Residency in Singapore

Following are the Singapore Tax Residents and liable to pay Singapore tax

  • Individuals physically present in Singapore
  • Companies registered under Singapore Companies Act, Chapter 50 and with management and control in Singapore
  • Trusts where trustee is a resident of Singapore
  • Partnerships if management and control e exercised in Singapore
  • Dual residence based on taxation treaty between Singapore and the other country

Foreign Income and Double Taxation Treaties

For Singapore Tax resident companies with business overseas, their foreign sourced incomes are normally deposited in Singapore for availing benefit from the foreign sourced income exemption scheme (FSIE).

In case, the foreign sourced income for a Singapore resident company is taxed twice both in foreign and Singapore, foreign tax credit (FTC) scheme of IRAS allows the company for claiming tax relief either through Double Tax Relief (DTR) or Unilateral Tax Credit (UTC) depending of Double Taxation Treaties with the other countries.

Claiming of Tax relief under FTC or FSIE scheme is only valid in case the Singapore based company is taxed in a foreign country where the headline tax rate exceeds 15%. Ready help in proper computation and appropriate filing of such Tax reliefs is extended by “tax filing services in Singapore”.

Advantages of Outsourcing Companies Tax Filing Needs in Singapore

If you are running a business, handling company taxation can really be very taxing at times. Especially in Singapore where tax laws are often revised along with criteria for tax reliefs and reduced tax rates, being updated on current tax laws become imperative and will invariably shift your focus from core business and competencies.

Even if you employ someone to handle your tax matters, there is hardly any guarantee that your employee would deal with Singapore’s complicated and ever changing tax issues effectively. Moreover, finding a tax expert in Singapore is usually difficult and comes at a high cost, and employee turnover is also very common in this city state.

Tax Filing services in Singapore with long experience and expertise of Singapore tax laws can be a very prudent decision considering some obvious reasons cited below.

  • Spending less time in taxes
  • Improving focus to help concentrate on future business strategies
  • Error free returns with no regulatory complications
  • Long term tax planning for maximizing tax benefits and improving cash flows

Scope of Corporate Tax Filing in Singapore

Corporate Tax Filing Services in Singapore normally includes the following

  • Corporate Tax Computation
  • Tax Computation Schedules
  • Filling up of From C/C-S for electronic submission
  • Advance and strategic Tax Planning
  • Estimated Chargeable Income (ECI) Computation
  • Capital Allowance Schedules
  • Filing of income Tax returns
  • Tax Audit and other Tax Advisory Services

IMC as your tax filing services in Singapore can assist you with accurate Tax returns on time and every time and help you avoid costly Tax filing mistakes. We are a team of well qualified and seasoned Tax professionals with long exposure on Singapore Tax Laws.

Frequently Asked Questions

What is the Tax Assessment Year (YA) in Singapore?

Singapore Tax YA runs from 1st January TO 31st December and tax filing to be done by 30th November next year.

Is it required for a yearlong non-functioning company to file tax returns?

Yes, it is compulsory for all companies to file yearly tax returns to IRAS.

What is ECI?

It stands for Estimated Chargeable Income.

What are Tax Exemptions in Singapore? Are they different for regular companies and startups?

Tax exemptions are tax reliefs given by IRAS for new Startups, partial tax relief for all companies and deduction of expenses incurred before commencement of business. Yes, new startups enjoy better tax reliefs from ACRA. The prevailing tax exemptions are given as under

Newly introduced Tax Exemption for Startups from 2020

Chargeable Income %Age Exempted from Tax Amount Exempted from Tax
Up to S$ 100000 75 S$ 75000
Next S$ 100000 50 S$ 50000
TOTAL S$ 200000 S$ 125,000

Tax Exemption for Startups from 2010 to 2019

Chargeable Income %Age Exempted from Tax Amount Exempted from Tax
Up to S$ 100000 100 S$ 100000
Next S$ 200000 50 S$ 100000
TOTAL S$ 300000 S$ 200,000

Newly Introduced Tax Exemptions from Singapore Corporations from 2020

Chargeable Income %Age Exempted from Tax Amount Exempted from Tax
Up to S$ 10000 75 S$ 7500
Next S$ 190000 50 S$ 95000
TOTAL S$ 200000 S$ 102,500

Tax Exemptions from Singapore Corporations from 2010 to 2019

Chargeable Income %Age Exempted from Tax Amount Exempted from Tax
Up to $S 10000 75 $S 7500
Next $S 290000 50 $S 145000
TOTAL S$ 300000 S$ 152,500

What forms should a company submit to IRAS?

Two forms need to be submitted. The ECI form within three months of end of financial year and the C or C-S form after 10 months of end of financial year.

Should a company outsource “tax filing services in Singapore”?

It is always advised to hire an external tax expert to handle tax matters as Singapore tax laws keeps changing with time. “Tax filing services in Singapore” is also cost effective and helps a company avoid civil and financial penalties.

If a company submits annual returns to ACRA, does it still need to submit tax returns?

Annual returns and tax returns are two separate entities and require compulsory filing with ACRA & IRAS respectively.

For you tax filing services in Singapore, just drop your email id and contact number. We will get in touch with you.