Compliance Requirements With IRAS (Company Tax and GST)

Company Tax

Estimated Chargeable Income (“ECI”)

All companies are required to file their ECI to IRAS within 3 months from the end of its financial year in the Year of Assessment (“YA”). ECI is an estimate of a Company’s chargeable income for the Year of Assessment.

You are exempted to file ECI if the Company satisfies both of these criteria:

  • Annual revenue is not more than $5 million for the financial year
  • The ECI is Nil.

Annual Income Tax Returns

All companies are required to file their Annual Income Tax Return with Form C or Form C-S to declare actual income by 30 November (Hardcopy filing) or 15 December (E-filing) in the year following the YA.

Financial statements and tax computation with supporting tax schedules are to be submitted together when filing Form C. Form C-S submission does not require these documents but they still have to be prepared and submitted to IRAS upon request.

Simplified Form C-S-companies will qualify to file for Form C-S if they meet all these requirements:

  • The Company must be incorporated in Singapore
  • The Company must have an annual revenue of $5 million or below
  • The Company only derives income taxable at the prevailing  corporate tax rate of 17%
  • The Company is not claiming any of the following in the YA:
    • Carry-back of Current Year Capital Allowances/ Losses
    • Group Relief
    • Investment Allowance
    • Foreign Tax Credit  and Tax Deducted at Source

Goods and Services Tax (GST)

  • It is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore.
  • The current GST tax rate is 7%.
  • Companies must register for GST if their annual taxable revenue is more than S$1 million or expected  to be more than $1 million.
  • Company can also choose to voluntarily register for GST and this is subjected to approval from IRAS.
  • Both GST returns and payment are due one month after the end of the accounting period covered by the GST return. If you are on GIRO plan for GST payment, GIRO deductions are on the 15th day of the month after the payment due date.

Let FM Accounting & Consultancy to assist you with your Company tax and GST compliance matters. Contact Us