Timely Filing of Tax Forms C and C-S: A Must-Do
As we approach the corporate annual tax return season, it’s essential to stay on top of the tax responsibilities. Filing either Form C or Form C-S, also known as the corporate income tax return, is a crucial income declaration for the Year of Assessment (YA) in Singapore.
For all companies operating in Singapore, the deadline for submitting tax returns to the Inland Revenue Authority of Singapore (IRAS) falls on or before 30th November every year. It’s important to note that this obligation applies irrespective of whether your company had a profitable year or incurred losses. The submission of Form C or Form C-S is a yearly requirement.
While a qualified Singapore tax agent well qualified in tax regulations can assist in completing and submitting Form C or Form C-S to IRAS, the ultimate responsibility for the tax return lies with the company’s directors.
Understanding Form C-S, Form C, and Form C-S (Lite)
To clarify the distinctions between Form C-S, Form C, and Form C-S (Lite), it’s essential to grasp their respective purposes.
Form C-S is a streamlined version of the tax return, specifically designed for small companies. IRAS accepts this version from eligible businesses.
Form C-S To qualify for and utilize Form C-S, your company must meet the following four criteria:
- The company is incorporated in Singapore.
- The company’s annual revenue (main source of income) does not exceed SGD 5 million (effective from YA 2017 onwards).
- The company derives income subject to the prevailing corporate tax rate.
- The company does not seek to claim carry-back relief, group relief, investment allowance, research and development tax allowance, foreign tax credit, or tax deducted at the source.
Under Form C-S, it is not mandatory to submit financial statements, tax computations, or supporting schedules, unless requested by IRAS.
Form C Companies that do not meet the eligibility criteria for Form C-S must file Form C. Alongside Form C, financial statements, tax computations, and supporting schedules must be submitted.
Form C-S (Lite) For companies with annual revenues under SGD 200,000, the Form C-S (Lite) offers a simplified option for their income tax returns. When a company submits Form C-S (Lite), it is not required to provide financial statements or tax computations upfront. However, these documents should be prepared and ready for submission upon IRAS’s request.
Deadlines for Filing Form C or Form C-S
The completion and submission of either Form C or Form C-S must occur no later than 30th November. Submissions can be made either online through MyTaxPortal or via paper submission.
Penalties for Late Tax Return Submission
Failing to submit your tax return on time can lead to costly consequences. Every year, numerous companies fail to adhere to IRAS filing requirements. In such cases, IRAS issues a Notice of Assessment (NOA) based on the Estimated Chargeable Income (ECI) previously submitted by the company.
Late submission or payment may result in fines, and in extreme cases, court summons can be issued. Penalties for late submissions can be as high as twice the required tax amount. While an appeals process is available for imposed fines, it’s best to avoid such situations.
Seeking Assistance with Form C or Form C-S Filing
We provide comprehensive corporate tax services for Singaporean companies, including the preparation of tax computations and the filing of Form C and Form C-S. If you require advice on tax exemptions or incentives, feel free to reach out to us via our inquiry form, and our experienced tax advisors will be in touch with you.
