Corporate Tax Filing Tips for Singapore Companies
Understand Corporate Tax Filing Exemptions
One common misconception is that loss-making or dormant companies need not file corporate tax returns. All companies, including those that did not carry on business or had incurred losses in the financial year, must file their CIT returns for the year unless they have received a waiver exempting them from filing the return. Companies with no business activities or have no intention to continue business can apply for a waiver to file the CIT returns.
Claim Capital Allowances for Eligible Fixed Assets
Companies can claim capital allowances for qualifying fixed assets purchased and used for trade or business, such as expenditure incurred on plant and machinery. There are several ways to calculate capital allowances, such as writing off low-value assets not exceeding S$30,000 per YA. Alternatively, you can also claim capital allowances over 2 years, 3 years, or the expected working life for the assets.
Ensure Sufficient Preparation of Supporting Documents
IRAS mandates that companies must keep proper and adequate supporting documents or receipts to back the deduction claims of expenses. Examples include keeping detailed records of business expenses, such as including the name and details of the clients or individuals who were entertained aside from the receipts and invoices if a company has significant entertainment expenses.
Use Seamless Filing From Software (#SFFS)
Companies must also maintain proper business records and accounts and retain them for at least 5 years. IRAS encourages the adoption of #SFFS to help manage daily operations and transactions digitally while enabling Form C-S submission to IRAS directly in a few clicks during CIT filing. #SFFS can also save up to 95% of time required to prepare and submit Form C-S to IRAS.
Claim Tax-Deductible Business Expenses
Companies commonly assume that all business expenses can be claimed as tax deductions. However, expenses such as private car expenditure, like petrol, parking, ERP charges and road tax are not tax-deductible even if it is used for business purposes. Companies can instead claim transport allowances provided to their employees.
Deducting Tax Allowable Expenses
Some business expenses can qualify for additional deductions. One example is cash donations to approved charities that qualify for 250% deduction while qualifying expenses incurred on the registration of intellectual property and overseas travel for trade fairs or exhibitions can receive another 100% deduction.
Claim Start-up Tax Exemption (SUTE) for New Companies
New start-up companies in Singapore are eligible for the SUTE, except for companies whose principal business activity is of investment holding, companies that undertake property development for sale, investment, or both, companies that are not incorporated in Singapore, companies that are not a tax resident of Singapore for that YA, and companies that do not have its total share capital beneficially held directly by no more than 20 shareholders throughout the basis period for that YA.
Leverage the New Enterprise Innovation Scheme (EIS)
As announced in Budget 2024, the EIS is a new tax incentive scheme that takes effect from 2024 for businesses in Singapore. Companies that incur qualifying expenditure on these activities under the scheme are eligible for enhanced deductions or allowances of 300% on the first S$400,000 of qualifying expenditure:
File the Right Income Tax Return (ITR)
Since there are 3 different types of ITRs, Form C-S/Form C-S (Lite)/Form C, companies must ensure that they are filing the correct ITR. Each ITR has its distinct eligibility criteria to help companies determine if they are the right one, and also have different requirements.
Engage a Certified Tax Agent
Companies that engage an accredited tax practitioner or advisor such as InCorp to file or review their ITR provides IRAS with the assurance on the accuracy of the ITR filed. These professionals are also better equipped with the skills and knowledge to help you manage complicated tax regulations to ensure compliance with filing requirements.
Let InCorp Assist With Your Corporate Tax Filing in Singapore Now
We are a leading corporate services provider in Singapore, with a team of experienced and certified tax agents well-versed in the latest tax laws and regulations. Our team can assist your company with all aspects of corporate tax returns filing, from assessing eligibility for different ITRs to ensuring accurate and timely submission to IRAS before the corporate tax filing deadline.
Our services help you stay compliant with IRAS and we also offer personalized advice and solutions tailored to your company’s unique needs. With InCorp handling your corporate tax filing, you can have peace of mind knowing that your taxes are being taken care of by experts.
Be assured of seamless compliance – let InCorp handle your corporate tax filing in Singapore today. Contact us now for more information!
FAQs about Corporate Tax Filing in Singapore
- The deadline is 30 November every year.
- Yes, Singapore offers several corporate tax exemptions and incentive schemes to encourage businesses to operate and grow in the country, such as the startup tax exemption.
- The fees for engaging a tax professional to file corporate tax in Singapore varies. Contact us to find out more!
About the Author
Mabel Ng
With over two decades of experience in direct and indirect taxation, Mabel has honed her expertise across a broad spectrum of environments, including the Big 4 accounting firms, mid-tier firms, and various industry roles. Her extensive background spans not only Singapore but also the wider Asia-Pacific region, reflecting a deep understanding of diverse tax landscapes and practices. She is also a member of the ISCA and FCCA, and is an SCTP Accredited Tax Practitioner.
