We also offer Tax Agent services helping clients to fulfill their annual tax obligations :
1. Within 3 months After the financial year end ; example 31 December 2019, the Company must File Estimated Chargeable Income of the Company’s financials ( ECI) by 31 March 2020. However, some companies are exempted from this requirement.
2. By 30 November 2020, using the same example 31 December 2019 Year End , the Company must file its Income tax Return – Form C or Form C-S.
3. To be in a position to file ECI and the Income Tax Return, Income Tax Computations must be prepared to compute the Company’s Corporation tax Liability.
4. When Tax Assessments are issued by IRAS, we will check that it is correct and if not we will lodge an Appeal.
Every Company’s business is unique so we need to meet and discuss with client before we can give you a quotation. Please email to angels@angelsbusiness.sg
General Rule for All Companies
A Singapore resident company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2019 will be taxed in 2020.
Basis Period and Year of Assessment
In tax terms, using the same example as above, 2020 is the Year of Assessment (YA). In other words, the YA is the year in which your income is assessed to tax.
To assess the amount of tax, IRAS looks at the income, expenses, etc. during the financial year. This financial year is known as the “basis period“.
The basis period is generally a 12-month period preceding the YA.
Examples Based on Different Financial Year Ends
| Financial Year End |
Basis Period |
YA |
| 31 Mar of each year |
1 Apr 2018 – 31 Mar 2019 |
2020 |
| 30 Jun of each year |
1 Jul 2018 to 30 Jun 2019 |
2020 |
| 31 Dec of each year |
1 Jan 2019 – 31 Dec 2019 |
2020 |
The same rule applies to new companies.
Corporate Tax Rate
With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.
Tax Schemes to Lower Tax Payable
(1) Tax Exemption Scheme for New Start-Up Companies
Under the scheme, qualifying new companies are given the following tax exemption for the first three consecutive YAs where the YA falls in:
YA 2020 onwards
- 75% exemption on the first $100,000 of normal chargeable income; and
- A further 50% exemption on the next $100,000 of normal chargeable income.
YA 2010 to 2019
- Full exemption on the first $100,000 of normal chargeable income; and
- A further 50% exemption on the next $200,000 of normal chargeable income.
For more details on the tax exemption scheme for new start-up companies and the qualifying conditions, please refer to Common Tax Reliefs That Help Reduce The Tax Bills.
(2) Partial Tax Exemption for all companies
All companies including companies limited by guarantee can enjoy the following tax exemption:
YA 2020 onwards
- 75% exemption on the first $10,000 of normal chargeable income; and
- A further 50% exemption on the next $190,000 of normal chargeable income.
YA 2010 to 2019
- 75% tax exemption on the first $10,000 of normal chargeable income; and
- A further 50% exemption on the next $290,000 of normal chargeable income.
For more details on the partial tax exemption scheme, please refer to Common Tax Reliefs That Help Reduce The Tax Bills.
(3) Corporate Income Tax Rebate
Corporate income tax rebate is given to all companies to ease business costs and support restructuring by companies and is applicable for YA 2013 to YA 2020.
All companies will receive a corporate income tax rebate of the following:
- New! 25% corporate income tax rebate, capped at $15,000 for YA 2020;
- 20% corporate income tax rebate, capped at $10,000 for YA 2019;
- 40% corporate income tax rebate, capped at $15,000 for YA 2018;
- 50% corporate income tax rebate, capped at $25,000 for YA 2017;
- 50% corporate income tax rebate, capped at $20,000 for YA 2016; and
- 30% corporate income tax rebate, capped at $30,000 per YA for YA 2013 to YA 2015.
Corporate income tax rebate is computed on the tax payable after deducting tax set-offs (e.g. foreign tax credit).
Tax Forms That Companies Must Submit Yearly
All companies need to submit two corporate income tax returns to IRAS every year:
Singapore is considered a Tax Haven jurisdiction because of its very low Corporation Tax Rate of 17%, stable government and proper governance and rule of law similar to the UK legal system.
It is not the lowest tax rate in the world but 17% is pretty good.
Many Companies have made Singapore their home from high tax jurisdiction countries like United Arab Emirates, Brazil, Venezuela, France, and Japan which report some of the world’s highest corporate tax rates.
