According to Singapore’s Income Tax Act, all companies doing trade or business in Singapore Or are receiving money in Singapore bank accounts are required to report their income to the Singapore Revenue Agency on an annual income tax return (Form C-S or Form C). However, many people are not sure these two tax returns are applicable to companies of different sizes, and the conditions and required documents are different.
Form C-S and Form C
There are two types of income tax returns in Singapore, Form C-S and Form C. Form C-S and Form C are the company’s declaration of actual income. The company must ensure that the declaration form is completed correctly and completely, and that the company’s income is fully and truly recorded. Even if the company is in a state of loss, the company will need to submit Form C-S or Form C.
Form C-S – Simplified royalty application form
To streamline the tax reporting process for small businesses, the Singapore Revenue Agency has introduced the Form C-S tax return from the 2012 assessment year – a three-page simplified income tax return that allows eligible small businesses to report their income to the tax authorities.
The simplified version of Form C-S only includes:
- Company’s Declaration of Eligibility
- Information on tax adjustments;
- Financial account information.
In addition, small companies that qualify for Form C-S are not required to submit any supporting documents unless the tax office has special requirements. In addition to fewer forms that need to be filled out, small businesses do not need to submit financial statements and tax calculations because basic tax and financial information must be declared in Form C-S. However, once required by the tax office, the company must prepare these financial statements and tax calculations and submit them to the tax office.
Conditions for filing Form C-S
Starting from the 2017 assessment year, the company will be eligible to submit Form C-S if all of the following conditions are met:
- The company must be incorporated in Singapore;
- The company’s annual income must be S$5 million or less;
- The company calculates taxable income at the current corporate tax rate of 17%;
- The company did not apply for the following plans or policies during the assessment year:
- Carrying forward of capital relief/loss for the year
- Collective tax deduction system
- Investment allowance
- Overseas tax credits and withholding taxes from sources
Form C
According to the regulations of the Inland Revenue Department, if the company does not meet the qualification for submitting FORM C-S, Form C must be submitted for tax declaration. When submitting Form C, the company also needs to submit financial statements, tax calculations and supporting documents together.
Get Form C-S or Form C
The Inland Revenue Department will send a copy of the Form C-S or Form C electronic filing notice letter to the company starting from the second year after the establishment of the company. The company must file an income tax return (Form C-S or Form C) by November 30 of the second year after the end of the fiscal year. If it is an online electronic filing, the deadline is December 15.
Sign Form C-S or Form C
Anyone authorized by the company can sign Form C-S or Form C, but the company’s directors or principals still need to be responsible for the company’s tax matters.
Filing deadline:
| Declaration method | Deadline |
|---|---|
| Online electronic filing (recommended) | December 15 |
| Entity form declaration | November 30 |
Failure to submit Form C-S or Form C on time
If the company does not submit Form C-S or Form C before the deadline, the Inland Revenue Department will issue an assessment notice based on an estimate of the company’s revenue. If the company does not agree with the assessment of the tax bureau, it must file a notice of opposition through the tax bureau within two months. Since the company is against tax assessment, the assessment tax must also be paid within one month from the date of the assessment notice.