Corporate Tax Singapore
Singapore encourage corporate income growth with attractive corporate income tax rebates, tax exemption schemes and Singapore SME can also leverage on SME Cash Grant such as Productivity and Innovation Credit Scheme (PIC grant) for more restructuring support. Low Singapore tax rates is an enticing feature for foreign companies to incorporate their business here. Knowing how government can help your business growth and having early corporate tax planning are the keys to business longevity. You may check with our accountants or IRAS (Inland Revenue Authority of Singapore) regards to Singapore corporate tax guide for more detailed information of income tax rates, tax incentives and Singapore tax system. All local or foreign companies are taxed at a flat tax rates of 17% on their chargeable income since 2010 but new start-up companies and existing companies can enjoy lower tax payable if qualified for the following schemes:
All companies – Singapore Partial Tax Exemption
- First $10,000 of normal chargeable income = 75% tax exemption
- Next $290,000 of normal chargeable income = Additional 50% tax exemption
New Start-Up Companies – Singapore Tax Exemption Schemes
- First $100,000 of normal chargeable income = Full tax exemption
- Next $200,000 of normal chargeable income (first 3 consecutive YAs) = Additional 50% tax exemption
All companies – Corporate Tax Rebate Rates For Year of Assessments: 2013 to 2017
All Singapore companies and Singapore branches of foreign companies, registered business trusts regardless of residency status that are eligible to receive income taxed at the concessionary tax rates can enjoy 30% corporate income tax rebate that is limited at :
- $30,000 maximum per Year of Assessment for YA 2013, YA 2014 and YA 2015
- $20,000 maximum per Year Assessment for YA 2016 and YA 2017 only.
The corporate tax rebate is, to help companies on the rising business costs but it is not applicable to the income derived by a non-resident company that is subject to final withholding tax. IRAS Singapore will compute the rebate on tax payable after tax set-offs deduction automatically. Do note that Corporate Income Tax Rebate does not need to be factored into consideration when companies file their own ECI or Estimated Chargeable Income. Every year, all companies must submit these 2 different Tax forms necessary to file taxes to Iras Singapore
- Corporate income tax returns (Form C-S or Form C)
- ECI or Estimated chargeable income
IRAS Singapore would assess company’s income, business expenses for this year (12 month period) for tax payable in next financial year, Year of Assessment or commonly referred to as YA. Upon receiving the date of Notice of Assessment (NOA), all companies would have to pay the taxes within 1 month. There would be a 5% penalty and 1% additional penalty subsequently every month if the tax is not paid.
What are the Corporate Taxable Income in Singapore?
- Corporate tax is imposed on all gains that is of revenue to business that can be obtained from or accrued in Singapore.
- Corporate tax is imposed on all gains or profits generated from any business or trades.
- Investment – profit income eg dividends, rental, interest.
- Property – profits such as premiums, royalties
- Foreign Income that is remitted from outside of Singapore is taxable if the income belongs to resident individual who is located in Singapore – Section 10(25) of Singapore Income Tax Act.
Companies can seek consultation on how to enjoy tax breaks to relieve on the double taxation.
What are non-taxable Income in Singapore?
- Capital Gains
- Certain types of income exempted from Tax eg shipping
- Remitted income from non-resident individuals and foreign business that does not operate in Singapore – Section 10(25) of Singapore Income Tax Act.
To assess and calculate the amount of taxes to be paid, companies can download the Basic Corporate Tax Calculator (BTC) from IRAS Singapore for their own computation and tax schedules. There are tax preparation software for tax professionals and accounting firms that provide accounting services on taxation matters as well. It is an offence for tax evasion in Singapore. It is understandable for companies to look for ways how to pay less tax but do you know that you can lower your taxable income with good corporate tax planning strategies? There are income tax saving schemes or tax incentives available from Spring Singapore, EDB, MPA, MAS that you can apply if qualified. Singapore Accounting provide accounting services to help companies on tax management based on these different sections of income tax. We help companies apply for PIC grant, incentives, exemption, exploring the most efficient way on how we can achieve better tax arrangement for the company and ensuring company not to get penalised for late tax filing. Your focus is on customers, company development and growth, not tax.
Singapore Corporate Income Tax Filing For SME
Tax calculators are readily available to estimate your corporate tax refund accurately. Income tax specialists from our team helps our SME partners with full taxation preparation work, audit, update the form and file the financial statements in PDF or XBRL which is used by acra or our accounting and corporate regulatory authority. Accounting software are able to provide SME with more bookkeeping functions, prepare forms and professional reports such as computing your profits and expenses in real time where balance sheet provides insight to your funds, resources and financial strength of your assets, infrastructure assets, liabilities and equity. Companies have to keep proper records and financial accounts of all transactions for corporate income tax filing. With proper bookkeeping, it provides more convenience and ease in tracking transactions, payment dates and financial projection for better understanding of your cash flow status and concerned budget, business operations can be adjusted appropriately for more cash on hand.
Accounts payable and receivable can be improved where you can use your new liquidity and financing options for company development and growth, especially for SME entrepreneurs who need to prepare and maximize resources in order to get on fast track after company incorporation. Newly registered companies can consult for outsource solutions to gain more with early income tax planning, applying for SME loan package. Besides advisory service, Singapore accounting services include tax advisory for our clients. Submit early for each work year to avoid missing the deadline. Working from home businesses are required to file to iras as well. Heavy penalties is not desirable for any act. Keeping our clients away from penalties and stress are our full responsibility and commitment. A proper way is to plan and get your taxation preparation done early. Let our professional consultants help you with your annual Singapore tax filing, minimize your taxes and grow your business!
Corporate Tax Services Singapore Packages Fees
Stretch Your Dollar With Our Taxation Services:
Singapore Accounting team specialises in assisting entrepreneurs with taxation matters. Our tax specialists will help our clients prepare corporate tax computation for the tax adjustments before completing the Form C-S/C. Being qualified members with ISCA, ACCA, our knowledge regards to taxation matters are updated constantly to ensure our clients in compliance with the law and regulation and less occurrences in receiving penalties due to negligence or lack of knowledge. If you require more accounting services, do check out more price details at Accounting Services Singapore Price List.
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