Tax Filing in Singapore

In Singapore, natural persons and companies are subject to tax filing requirements. Each category of taxpayer must comply with specific accounting regulations and submit income tax returns in accordance with the requirements of the Inland Revenue Authority (IRAS).

Below, ourSingapore accountants explain the conditions to file income taxreturns for people and companies. We also offer support in submitting the necessary documents for correct accounting compliance.

Who must file income tax returns in Singapore?

Here are the main categories of taxpayers that are also subject to Singapore tax filing requirements:

• Singapore citizens and residents who earn more than SGD 22,000 per year;
• self-employed with a net profit above SGD 6,000 per month;
• non-resident people who obtain income in Singapore;
• local and foreign companies are also subject to corporate tax filings in Singapore.

All taxpayers are informed by the IRAS if they must submit income tax returns. Our accounting firm in Singapore is at the service of clients who need assistance in filling out tax statements.

Categorization of income for tax filing purposes in Singapore

Singapore’s taxation system is not complicated; however, due to the fact that the Government provides for various deductions and exemptions, it is important to understand which income is taxed and which one is not. So, here is how income is categorized in the City-State:

• taxable income, which is represented by wages, business and trade profits, rental, royalties, premiums, interests, and dividends (only under certain circumstances);
• non-taxable income, under which we can consider capital gains, money obtained by applying for certain incentives, overseas income sources (certain income only);
• business allowances, which are expenses that can be deducted partially or fully, among which are worth mentioning rental and utilities, salaries, marketing, consultancy fees.

To benefit from the latter, it is important to note that special documents must be drafted, in which case we recommend using our accounting services in Singapore for full compliance.

Company tax filing in Singapore

Local and foreign enterprises are subject to corporate tax filing requirements in Singapore and must file specific tax returns in accordance with their profit. Form C-S must be submitted by enterprises that meet all the following conditions:

• resident companies;
• generate a maximum of SGD 5 million per year;
• the taxable income is subject to the 17% tax rate;
• are not subject to capital allowances or losses during the current year;
• do not claim group relief;
• are not subject to Foreign Tax Credit and taxes deducted at source;
• do not benefit from the investment allowance.

Apart from these, there are also:

• Form C-S Lite for companies with an annual revenue not exceeding SGD 200,000;
• Form C for all other businesses that do not fall under the Form C-S and Form C-S Lite corporate tax filings in Singapore.

Our Singapore accountants are at your service should you need support in respecting company tax filing requirements. Below, we have an infographic on this topic:

The Estimated Chargeable Income tax return for companies in Singapore

A specific Singapore tax filing requirement for certain companies refers to the submission of the Estimated Chargeable Income (ECI) tax return.  This is an estimate calculation of a business’ taxable profits for a Year of Assessment after deducting all expenses.

The following types of enterprises are exempt from this company tax filing requirement in Singapore:

• they are eligible for the ECI waiver;
• they are specifically exempt from this requirement.

Our accounting firm in Singapore can verify the eligibility for this corporate tax filing submission.

Tax filing requirements for foreign companies in Singapore

Foreign businesses can operate through branches and subsidiaries if they carry out commercial activities in Singapore, and through representative office if they do not. For this purpose, our Singapore accountants will address the tax filing requirements for the former two entities in the lines below.

Branches and subsidiaries must draft financial statements in accordance with the Singapore Financial Reporting Standards which must comprise:

• a director’s declaration;
• a statement on the financial position of the entity;
• an income statement;
• accounts and disclosures notes.

Based on these financial documents, companies must prepare the annual return and file it with the Accounting and Corporate Regulatory Authority no later than 7 months from the end of the fiscal year.

The annual return must contain:

• the company’s and shareholders’ details;
• the details of the director;
• information about the share capital of the business;
• the XBRL financial statements.

Our accounting firm in Singapore can help with the drafting and filing of XBRL statements.

It is important to note that in the case of certain foreign-owned businesses that complete transactions with other parties, transfer pricing rules must be respected. For this purpose, if the annual revenue of such an enterprise surpasses SGD 10 million or other established thresholds, specific documents must be drafted.

Foreign-owned companies can also benefit from tax benefits available for local businesses, such as the partial tax and the startup tax exemptions, as well as from Singapore’s double tax treaties based on their country of residence.

Singapore tax filing documents for natural persons

Natural persons, citizens, residents, and non-residents must prepare the following documents to file for the income tax in Singapore:

• Form B1 for resident taxpayers;
• Form B for Singapore sole traders;
• Form M for non-resident taxpayers;
• Form IR8A for Singapore employees whose employers are not enrolled in the Auto-Inclusion Scheme;
• information about dependents (children, parents) to obtain the tax reliefs available, if applicable;
• information on other types of income (rental, expenses).

Singapore sole traders and members in partnerships must also provide the business, partnership tax registration numbers.

Tax filing periods in Singapore

Here is when you must file income tax returns in Singapore:

• by the 15^th of April, if you are a natural person and will submit the tax return by paper;
• by the 18^th of April, if you are a natural person and will be completing the submission online;
• 5^th of May to 30^th of November is the deadline for corporate tax filings in Singapore, based on the start and end dates of the Year of Assessment for companies.

For support in complying with the Singapore tax filing conditions, please contact us.