IRAS requires the company to have a proper system to keep all the daily business transactions in accounting system. IRAS has been strictly enforcing taxation laws, and complying is essential to securing your long-term business success.
Take up our Singapore corporate tax services today and be tax-smart. Comply with government taxation regulations without unnecessary overpayments. Singapore low tax rates and tax incentives continue to attract entrepreneurs around the world to setup their business companies in Singapore. The Government generous tax incentives of granting companies first 3 years of tax assessment, first $ 100,000 chargeable income (profits) at zero rate and next $ 200,000 profits at tax rate of 8.5% and above $ 300,000 profits, at flat 17% tax rate.
Singapore has a one-tier territorial based flat-rate corporate taxation system. Effective tax rate is 17 percent on companies, the lowest in the world.
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- Review and computation of Tax; Corporate tax computation
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- Filing of Form C, CS, Form B & Form P
Despite Singapore’s low corporate tax rate of 17% effective from the year of assessment 2009, start-up companies can still enjoy other tax reliefs.
Partial tax exemption
Effective from YA 2008, a partial tax exemption is given to companies on normal chargeable income* (excluding Singapore franked dividends) of up to $300,000 as follows:
|First $10,000||@ 75%||= $7,500|
|Next $200,000||@ 50%||= $145,000|
Tax exemption for start-ups
Since YA 2005, a qualifying company can claim for full tax exemption on the first $100,000 of normal chargeable income (excluding Singapore franked dividends) for its first three consecutive YA. Effective from YA 2008, a further 50% exemption is given on the next $200,000 on a qualifying company’s normal chargeable income (excluding Singapore franked dividends).
The tax exemption for new start-up companies on chargeable income of up to $300,000 is as follows:
|First $10,000||@ 100%||= $100,000|
|Next $200,000||@ 50%||= $100,000|
A company that does not qualify for a tax exemption for new start-up companies will be given partial tax exemption.
|Estimated chargeable Income (ECI)||This is an estimate of a company’s chargeable income for the year of assessment.||Lodge with IRAS within 3 months of the year end.|
|Annual financial statement||Several reports including a balance sheet, a profit and loss statement and cash flow statement and notes for financial statements prepared to SFRS.||Lodge with ACRA within 6 months of the date of the AGM.|
|Annual General Meeting (AGM)||The shareholder(s), director(s) and corporate secretary validate the annual financial statement, draft director’s resolutions, and record minutes of the meeting.||Held within 6 months from the date of the year end OR 15 months from the date of the last AGM.|
|Corporate tax computation||The tax file includes computation of tax, preparing tax forms for corporate submission.||Lodge with IRAS by 30th November of the year of assessment.|
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