【Singapore Company Registration Tips】It's the end of the year, how to declare Singapore company tax? See here!-FOZL

Language
- 简体中文
- English

FOZL Knowledge Hub

Everything you need to know about setting up and succeeding in Singapore

Singapore's advantages

Company Registration and Services

Home

【Singapore Company Registration Tips】It's the end of the year, how to declare Singapore company tax? See here!

Year-end is approaching. Today, FOZL editor shares with you how to declare the tax of a Singaporean company, taking 2016 as an example. Let's take a look together!

The following is a list analyzing whether the company needs to apply for tax in 2016 based on the year the company was established:

Year of company establishment	Whether tax filing is required in the 2016 fiscal year	What you need to do
2014	Yes, you need to. The YA 2016 document package was issued in May 2016. Even if you did not receive your package, you can still file your taxes electronically.	· File your 2016 fiscal year income tax electronically. mytax.iras.gov.sg · File your 2016 fiscal year income tax electronically. · If the time of your first set of financial accounts exceeds 12 months, you will need to fill in your income for YA 2015 and YA 2016 in the corresponding items on the C-S/C form.
2015	You need to file taxes for the 2016 fiscal year if your company a. Ended the company's first set of financial accounts in the same year, e.g., 2015 b. Started operations or received income in 2015.	· To apply for tax filing with IRAS, you should submit the "Required Tax Return Application" via fax, mail, or email. · We will process your request within 7 days of receiving the application and send an electronic application notification to the company. You can also check the application status via mytax.iras.gov.sg. Once the C-S/C form appears on mytax.iras.gov.sg, you will be able to start applying for taxes electronically. · If you wish to submit a paper tax return, please retrieve the Document Identification Number (DIN) through our "View DIN" e-service and quote it on the C-S/C form.
2015	If your company ended its first set of financial accounts in 2016. You only need to submit your first tax return next year, e.g., 2017 YA. IRAS will send you an electronic application notification letter in May 2017. No need to file taxes for the 2016 fiscal year.	——
2016	You do not need to file the YA 2016 tax return.	——

Application Form

Income tax returns are of two types, C-S form and C form. Even if your company is suffering losses, you still need to submit the relevant C-S/C form.

The C-S form is a 3-page abbreviated return for eligible small companies to report their income to IRAS. Eligible companies only need to submit the C-S form to IRAS.

Eligibility for using the C-S form is as follows:

· The company was established in Singapore

· Has an annual income of less than S$5 million

· Only subject to the current corporate tax rate of 17%

· Has not applied for tax relief, group relief, investment allowance, research and development tax allowance, foreign tax credit, and tax deducted at source.

While submitting the C-S form, you do not need to submit the relevant financial statements, tax computations, and schedules unless requested by IRAS.

About Dormant Companies

A dormant company is one that does not operate a business and has no income throughout the base period. For example, if a company did not operate a business and did not receive any income during the entire base period ending in 2015, it will be considered a dormant company in 2016 YA.

Dormant companies must submit income tax returns through a simplified dormant company template unless the company has been exempted from filing income tax returns.

How to Calculate Tax

Taxable Income

Taxable income refers to income generated in or sourced from Singapore, such as:

· Profits or gains from any trade or business;

· Investment income such as dividends, interest, and rent;

· Royalties, insurance premiums, and any other property profits;

· And other income of an income nature.

When income generated outside Singapore is received or remitted into Singapore, that income will also be taxed.

Regarding tax deductions and allowances for companies.

You can apply for tax deductions for expenses specifically used to generate income.

Common Mistakes in Applications

Common application errors include:

· Double claiming for the same expenses and receiving a 400% enhanced deduction/allowance under the Productivity and Innovation Credit (PIC) scheme;

· Claiming a 500% instead of a 400% enhanced deduction/allowance for eligible expenses under the PIC scheme.

· Underestimating income. For example, omitting certain receipts or invoices

Tax Calculation for Investment Holding Companies

The main business of an investment holding company is to hold properties and stocks for long-term investment, mainly generating investment income such as dividends, interest, or rental income (“non-trade income”).

If errors are found after submitting the income tax return, you can amend the declared amount and/or submit a revised tax computation.

Whether it is filing Singapore company income tax, personal income tax, or property tax payment, you can contact the FOZL editor, our accountants can assist you.

【Singapore Company Registration Tips】How much do you know about Singapore corporate income tax?

None

Relevant Knowledge

【Licensing】Food Import Licence

All companies wishing to import, export, or trans-ship food products must be registered and licensed by the Singapore Food Authority in accordance with the relevant laws of Singapore.

【Licensing】Custom Registration

Companies registered in Singapore can directly engage in international trade. If a company intends to import products into Singapore, the goods must undergo customs clearance upon arrival. This requires the company to submit an application to Singapore Customs in advance and obtain the necessary registration or permits. Once the customs registration is approved, logistics companies or customs brokers can declare the goods to Singapore Customs on behalf of your company, pay Goods and Services Tax (GST), and import the goods into Singapore.

【Licensing】13R & 13X

For investments in Asia and the Pacific, Singapore is an important base for family offices, private equity, real estate, and hedge fund managers.

【Licensing】Ship Registration

The Singapore ship registration system is administered by the Maritime and Port Authority of Singapore (MPA). The following outlines the eligibility, procedures, and documentation requirements for registering a vessel in Singapore.

【Licensing】Fund Management Licence