In Singapore, key tax compliances include, but not limited to, Corporate and Personal income tax, Goods and Services Tax and others. For the case of Goods and Services Tax (GST), if your annual turnover exceeds SGD 1 million, the compliances include submitting annual tax returns, keeping accurate financial records, and adhering to anti-avoidance provisions to prevent tax evasion.

The Inland Revenue Authority of Singapore (IRAS) has implemented various measures to ensure tax compliance, including audits, penalties for non-compliance, and the use of technology to streamline tax administration. It is important to note that tax laws and regulations in Singapore are subject to change, so it is always advisable to stay up-to-date with the latest requirements and seek professional advice as needed.

Income derived by companies in Singapore is imposed at a flat rate of 17%. A partial tax exemption and a three-year start-up tax exemption for qualifying start-up companies are available. The start-up exemption is not available to property development and investment holding companies.

Please visit the link for more information on the Basic Overview of Corporate Income Tax

Singapore businesses are required to pay various forms of taxes as regulated by the Inland Revenue Authority of Singapore (IRAS). These include corporate tax, goods and services tax (GST), property tax, and stamp duty, among others.

Companies (resident and non-resident) that carry on a business in Singapore are taxed on their Singapore-sourced income when it arises and on foreign-sourced income when it is remitted or deemed remitted to Singapore.

*Normal chargeable income refers to income to be taxed at the prevailing Corporate Income tax rate of 17%

In Singapore, corporate income is assessed on a preceding year basis. This means that the basis period for any Year of Assessment (YA) generally refers to the financial year ending (FYE) in the year preceding the YA. For example, in year 2024 you will be filing corporate tax return for your company’s financial year that ended anytime between January 1, 2023 to December 31, 2023. Your company’s accounts are prepared up to the FYE each year. 

Estimated Chargeable Income (ECI) is an estimate of your company’s taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).  In order for you and your company to stay compliant with Inland Revenue Authority of Singapore (IRAS), every company is required to submit an ECI for the Year of Assessment within 3 months after the end of its financial year.

If your company has no chargeable income or incurred losses, you will still have to file a ‘NIL’ ECI. In addition, if your company has more than S$5 million of revenue for the year, but has no chargeable income, you will need to submit ECI.

Submission of ECI may be waived if certain conditions are satisfied. 

All Singapore incorporated companies are required to file a tax return on an annual basis. Although the company is making losses, the losses still have to be submitted via tax return to IRAS. Subject to certain conditions, the losses can be utilised to offset against future profits of the company.

The due date for corporate tax filing (e-filing) for Singapore companies is 30 November. The company has to file a complete set of returns including Form C, audited/unaudited accounts, and tax computation. The Form C is a declaration form for a company to declare its income whereas tax computation is a statement showing the adjustments to the net profit/loss as per the accounts of a company to arrive at the amount of income that is chargeable to tax.

You can claim deduction for expenses that are wholly and exclusively incurred in the production of company income.

To qualify for the deduction, the expenses must:

• Be revenue focus in nature. This covers normal day-to-day expense but excluding capital expenditures
• Not be prohibited under the Income Tax Act
• Have actually been incurred. (Contingent liability should not be allowed for tax deduction)