2017-05-08
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Corporate Tax Computation

Corporate Tax Computation Requirement to Submit Tax Computation A tax computation is a statement showing the tax adjustments to the accounting profit to arrive at the income that is chargeable to tax. Tax adjustments include non-deductible expenses, non-taxable receipts, further deductions and capital allowances. Companies should prepare their tax computations annually before completing the Form C-S/ C. Only companies filing Form C need to submit their audited/unaudited* financial statements, tax computation and supporting schedules together with Form C. Companies filing Form C-S are still required to prepare their financial statements, tax computation and supporting schedules and submit them to IRAS […]
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2019-04-26
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Loss Carry-Back Relief

Loss Carry-Back Relief Companies may carry-back unutilised capital allowances (CAs) and trade losses arising in a Year of Assessment (YA) to reduce the amount of taxes payable in an immediately preceding YA. Background of the scheme To help small businesses cope with cash-flow problems especially in cyclical downturns, a one-year carry-back of current year unutilised CAs and trade losses was introduced effective YA 2006. The Loss Carry-Back Relief complements the existing policy of companies being able to carry forward their unutilised CAs and trade losses to setoff future incomes (i.e. loss carry-forward) or transfer unutilised CAs and trade losses to related […]
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2019-06-18
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Partial Tax Exemption

Partial Tax Exemption Partial Income tax Exemptions Year of Assessment (YA) Tax rate Tax exemption/ rebate 2013 and subsequent YAs 17% Partial tax exemption and tax exemption scheme for new start-up companies Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Partial tax exemption for companies (from YA 2020) Chargeable income % exempted from Tax Amount exempted from Tax First $10,000 @75% =$7,500 Next $190,000 @50% =$95,000 Total $200,000 =$102,500 Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020) Chargeable […]
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2019-07-23
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Corporate Income Tax Rate

Corporate Income Tax Rate Year of Assessment (YA) Tax rate Tax exemption/ rebate 2013 and subsequent YAs 17% Partial tax exemption and tax exemption scheme for new start-up companies Companies can enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below. Partial tax exemption for companies (from YA 2020) Chargeable income % exempted from Tax Amount exempted from Tax First $10,000 @75% =$7,500 Next $190,000 @50% =$95,000 Total $200,000 =$102,500 Tax exemption scheme for new start-up companies (where any of the first 3 YAs falls in or after YA 2020) Chargeable income % exempted […]
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2019-09-13
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Foreign-Sourced Income

Foreign-Sourced Income The Tax Exemption A Singapore tax resident company can enjoy tax exemption on its specified foreign income that is remitted into Singapore. Categories of Foreign-Sourced Income The three categories of specified foreign income are: Foreign-sourced dividend; Foreign branch profits; and Foreign-sourced service income. Qualifying Conditions for Tax Exemption Under Section 13(9) of the Income Tax Act, tax exemption will be granted when all of the following three conditions are met : The foreign income had been subject to tax in the foreign jurisdiction from which they were received (known as the “subject to tax” condition). The rate at which the […]
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2019-11-06

What is Corporate Tax

Corporate Tax Corporate income tax rate Companies, whether local or foreign, are taxed at a flat rate of 17% of their taxable income. General rule for all companies All Singapore companies are required to pay tax on income from the previous financial year. The income from the 2019 Financial Year will be taxed in 2020. Base period and year of assessment For tax purposes, using the same example above, 2020 is the year of assessment (YA). In other words, YA is the year in which your income is assessed for taxation. In order to assess the tax, the Inland Revenue […]
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2019-12-02
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Taxable Income

Taxable Income For Singapore tax purposes, taxable income refers to: The proceeds or profits of any trade or business. Investment income such as dividends, interest and rent. Royalties, insurance premiums and any other property profits. Other gains that are revenue in nature Deductions such as business expenses, capital allowances and reliefs can be claimed to reduce taxable income, which will result in a lower taxes. Business Expenses Business expenses are the costs you pay to run your business. Some examples are Central Provident Fund contributions, salaries, renovations, advertising, etc. Business expenses may or may not be deductible. When deducted, they […]
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2020-08-17
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File Corporate Income Tax

File Corporate Income Tax The annual filing deadline for Form C-S/ C is 15 Dec for YA 2020 and 30 Nov from YA 2021 onwards. Filing Deadlines The annual filing deadline for Form C-S/ C is: Year of Assessment (YA) Due Date 2020 15 Dec 2021 Onwards 30 Nov Late Filing Submit Form C-S/ C by the filing deadlines to avoid enforcement actions such as composition or summons. The filing deadlines provide companies with at least 11 months to file from the time of closing of the accounts. Example Financial year end of company Period covered in the accounts YA […]
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2021-04-15
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Things to note for Singapore VCC taxation

Things to note for Singapore VCC taxation VCC, either is non-umbrella VCC or an umbrella VCC comprising two or more sub-funds, it will be recognised as a single entity for income tax purpose. However, each sub-fund of an umbrella VCC is regarded as a separate person for GST purposes. Similar to companies incorporated under Companies Act, a VCC is considered a tax resident in Singapore for the assessment year if the control and management of the VCC’s business is exercised in Singapore for that year. The tax residence of a sub-fund follows that of its umbrella VCC. This means that […]
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