The Ultimate Tax Filing Guide: Navigating Tax Filing Deadlines In Singapore
5 minute read
As a small business owner in Singapore, you must stay on top of your tax obligations. Meeting tax deadlines ensures compliance with Singapore’s tax laws and helps you avoid penalties and legal issues. To simplify the process, we have prepared a comprehensive tax deadline checklist specifically tailored for small businesses in Singapore.
Singapore’s tax system is known for its efficiency and simplicity, but it still requires careful planning and organization. The key to a successful tax season is preparation, and this checklist will guide you through the essential steps. By following this guide, you can ensure that you meet all the necessary tax filing deadlines, including annual return filing and corporate tax filing.
The statutory body charged with the administration of taxes in Singapore is called the Inland Revenue Authority of Singapore (IRAS). Remember these four words because they are the most important in your small business journey in Singapore.
Choose your company’s financial year-end (FYE)
In Singapore, your company’s income earned in a financial year (FY) will be assessed and taxed in the following year. This following year is known as the year of assessment (YA).
You can pick a financial year-end (FYE) to determine the financial year of your company. In Singapore, FYE can fall on any given date of the calendar year.
These two services are important
You need to ensure that you have a proper accounting and corporate secretarial service in place to meet the tax deadlines. These two services are crucial because they help you in many ways:
- Avoid missing deadlines: Singapore does not allow any oversight on tax filings. The government can levy penalties on the smallest delay.
- Accurate Financial Reporting: As a small business owner you need to track income, assets, and liabilities to ensure that your company’s financial records are transparent and comply with accounting standards.
- Tax compliance: Every small business in Singapore must comply with the country’s tax regulations. You must make sure that the required financial data is available at all times.
- Tax planning: Good accounting practices will help your small business in Singapore manage taxes efficiently. You can identify potential deductions and credits that can lower your tax liability.
- Corporate governance: Your corporate secretary will help you ensure that your company meets legal requirements and deadlines.
- Filing deadlines and penalties: Singapore has strict deadlines for tax filing. If you fail to meet these deadlines, you are liable for financial penalties and potential legal issues
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Key events, descriptions, and deadlines in the Singapore tax calendar
Let us take a look at the key dates and important steps you need to take to stay compliant with Singapore’s tax laws and regulations.
- Estimated chargeable income (ECI)
- ECI is an estimate of your company’s taxable profits and serves as an indication of your final tax liabilities.
- Singapore companies are required to file ECI within three months from the end of their financial year,
- The ECI is required to be filed unless the company satisfies both the following requirements:-
- Annual revenue is $5 million or below for the financial year; and
- ECI is nil for the YA.
- Corporate income tax return
- Companies in Singapore are required to file their corporate income tax return, known as Form C-S or Form C, with the IRAS.
- The filing due date falls on November 30th.
- Filing of annual returns post AGM meeting
- Every Singapore company, big or small, is required to file an annual return with the Accounting and Corporate Regulatory Authority (ACRA).
- This return must be filed within one month of the company’s Annual General Meeting (AGM).
- The AGM must be held within 6 months from the end of the company’s financial year-end.
- GST returns
- If your small business is registered for GST, you must file your GST returns regularly.
- The filing frequency can be quarterly or monthly, depending on your company’s turnover.
- The deadline for GST filing is typically one month after the end of each accounting period.
- Keep track of your GST filing dates to avoid late submissions.
- CPF Contributions for Employees
- As an employer, you must make Central Provident Fund (CPF) contributions on behalf of your employees.
- Ensure that you accurately calculate and submit the CPF contributions to avoid potential disputes with your employees and penalties from the CPF Board.
- These contributions must be made by the 14th of each month.
- Property Tax
- If your company owns property in Singapore, you must file a Property Tax Return (PTR).
- The PTR is typically sent to property owners or tenants by the IRAS at the beginning of the year.
- The tax payment is usually due on specific dates throughout the year, with two or four instalments depending on the property type.
- IRAS will inform the taxpayer about the payment schedule.
- Commission income
- In Singapore, commission income earned by small businesses is generally treated as part of their ordinary income.
- If the small business operates as a company, it will be subject to corporate income tax.
- If the small business is operated as a sole proprietorship or a partnership, the commission income will be part of the business owner’s personal income.
- For companies with international operations
- CRA registration
- All companies must register with the Central Registration Agency (CRA).
- CRA is a department of the Singapore Department of Statistics that is responsible for registering businesses and other entities in Singapore.
- The CRA assigns a unique Central Registration (CR) number to each registered entity.
- CRS compliance
- All companies in Singapore must adhere to the Common Reporting Standards (CRS) of the OECD.
- CRS is an internationally-agreed standard that provides automatic exchange of financial account information.
- This is mainly for financial institutions and banks, whose customers include small companies.
- FATCA Returns
- FATCA stands for Foreign Account Tax Compliance Act (FATCA).
- It requires financial institutions in Singapore to report information about certain U.S. account holders to the Inland Revenue Authority of Singapore (IRAS).
- This information is then shared with the U.S. Internal Revenue Service (IRS).
- Financial institutions must submit FATCA returns to the IRAS on an annual basis.
- CRA registration
Summary of key dates
After you have registered your small company with the ACRA, track the following key dates of the taxation calendar.
We have assumed 1st January is the date of registration/incorporation, and 1st January – 31st December as the FY.
|Choose your FYE:||1st January|
|Appoint Auditor:||1st April (no later than 3 months after incorporation)|
|Appoint Corporate Secretary||1st July (no later than 6 months after incorporation)|
|File ECI||31st March (no later than 3 months after FYE)|
|Hold AGM||30th June (no later than 6 months after FYE)|
|File Annual Return with ACRA||31st July (no later than 7 months after FYE)|
|File Annual Tax Returns with IRAS||30th November after FYE|
What are the penalties for late filing?
IRAS may issue an estimated Notice of Assessment which has to be paid within 1 month, offer to compound the offense (up to $5,000), issue a Section 65B(3) notice to your company director to submit the required information in the Corporate Income Tax Returns to IRAS and/ or summon the company or persons responsible for running of the company (including the directors) to Court. For annual return filing, the penalty is S$300 for the first offence and can increase to S$600 for subsequent offences, with possible court prosecution for continuous non-compliance.
Staying on top of your tax obligations is crucial for the smooth functioning of your small business in Singapore. By adhering to this comprehensive tax deadline checklist, you can ensure the timely filing of your annual returns and corporate tax, avoiding penalties and compliance issues.
Use comprehensive digital platforms such as www.sleek.com/sg to register your company, and manage your governance, accounting and tax compliance online.
Contact Sleek’s expert accountants today.
The tax filing deadline for your Singapore small business depends on the type of tax return you need to file. For corporate income tax filing (Form C/C-S), the deadline is usually on November 30th of each year.
The annual return filing deadline for a Singapore small business is typically due within one month after the Annual General Meeting (AGM) is held. The AGM must be conducted within six months after the end of your company's financial year-end.
Yes, you can apply for an extension of the corporate tax filing deadline in Singapore. The extension is typically granted on a case-by-case basis, and you need to provide valid reasons for the request.
Yes, both corporate tax returns (Form C/C-S) and annual returns can be e-filed through the IRAS' myTax Portal. E-filing offers a more convenient and efficient way to submit your tax-related documents.