If you have a small company in Singapore, you may find that reporting the estimated chargeable income (ECI) and filing the annual tax returns is not an easy task given the few resources that your company has at its disposal.
The Inland Revenue Authority of Singapore (“IRAS”) has noted this fact and therefore,
1) for companies whose turnover does not exceed $1 million; and
2) these companies do not have an ECI* for that relevant period (*: It is the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies);
then you will not be required to file for ECI returns in that particular financial year. This is only in effect for companies whose accounting year ends in October 2012 and after.
Filing tax returns for the small companies has also been simplified and it is now faster. The IRAS has introduced a simplified income tax return form also known as form C-S. The form only requires inclusion of important tax and financial information. The argument for form C-S could be that small companies have simple transactions and fewer tax claims and adjustments.
If you file the returns on form C-S electronically, you will get an extended e-filing deadline of 15 December instead of the deadline of paper filing of form C on 30 November.
At J Accounting Services, we believe in helping small companies achieving corporate tax compliance and meeting all statutory requirements. If you are looking to engage company tax consultants to provide you with corporate tax compliance services, then feel free to take a look at what we have to offer.
