General Corporate Income Tax Rules
Corporate Income Tax is assessed on a preceding year basis in Singapore. Singapore’s Corporate Income Tax rate is 17%.
Your company is taxed on the income earned in the preceding financial year.
This means that income earned in the financial year 2022 will be taxed in 2023. In tax terms, 2023 is the Year of Assessment (YA), as it is the year in which your company’s 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.
The financial year end is determined by your company based on what best suits its business operations. IRAS does not determine the financial year end for companies.
Corporate Income Tax Filing Obligations
Your company has to file 2 Corporate Income Tax Returns with IRAS every year: Estimated Chargeable Income (ECI) and Form C-S/ Form C-S (Lite)/ Form C.
Tax Return | Purpose | Due Date |
ECI | To declare an estimate of the company's taxable income for a Year of Assessment (YA) | Within 3 months from the end of the financial year, except for companies that qualify for the ECI filing waiver and those that are specifically not required to file an ECI |
Form C-S/ Form C-S (Lite)/ Form C | To declare the company’s actual taxable income for a YA | 30 Nov each year |
Estimated Chargeable Income (ECI) Filing
What is ECI
ECI is an estimate of your company's taxable profits (after deducting tax-allowable expenses) for a Year of Assessment (YA).
Filing ECI
Your company has to file ECI within 3 months from the end of your financial year
Your company will receive a notification from IRAS to file its ECI in the last month of its financial year. This is a reminder to file your company’s ECI.
If your company did not receive the notification and does not satisfy the conditions to be exempted from ECI filing, it is still required to file within 3 months from the end of its financial year.
For New Companies
You will receive the ECI filing notification from IRAS before the end of your company’s financial year, starting from the year after the year of incorporation. You will not receive the notification in the year of incorporation, as most companies do not close their first set of accounts in the year of incorporation. For example, if your company is incorporated in 2021 and has a Dec financial year end, you will receive your first ECI filing notification for the Year of Assessment (YA) 2023 in Dec 2022.
However, if your company closes its first set of accounts in the year of incorporation, you are still required to file the ECI within 3 months from your company's first financial year end, even though you have not received any ECI filing notification. This is so unless the company qualifies for the ECI filing waiver.
Using the same example above, if your company closes its first set of accounts on 31 Dec 2021 and does not qualify for the ECI filing waiver, you are required to file the ECI for YA 2022 by 31 Mar 2022 (within 3 months from 31 Dec 2021).
Filing of Corporate Income Tax Return
You will receive a Form C-S/ Form C-S (Lite)/ Form C filing notification by May of each year. This is a reminder to file your company’s Form C-S/ Form C-S (Lite)/ Form C.
Which Corporate Income Tax Return Form to File
Form C-S is for companies that:
Are incorporated in Singapore;
Have an annual revenue of $5 million or below;
Derive income taxable at the prevailing Corporate Income Tax rate of 17%; and
Are not claiming the following:
Carry-back of Current Year Capital Allowances/ Losses
Group Relief
Investment Allowance
Foreign Tax Credit and Tax Deducted at Source
Form C-S (Lite) is for companies that qualify to file Form C-S and have an annual revenue of $200,000 or below.
Form C is for companies that do not qualify to file Form C-S or Form C-S (Lite). Financial statements, tax computations and supporting schedules must be filed together with Form C.
For New Companies
You will receive the Form C-S/ Form C-S (Lite)/ Form C filing notification from IRAS by May of each year, starting from the second year after the year of incorporation*. You will not receive the notification in the year of incorporation, as most companies do not close their first set of accounts in the year of incorporation. For example, if your company is incorporated in 2021, you will receive your first Form C-S/ Form C-S (Lite)/ Form C filing notification for the Year of Assessment (YA) 2023 by May 2023.
However, if in the year of incorporation, your company:
Closes its first set of accounts; and
Commences business or receives any income;
you are still required to file the Form C-S/ Form C-S (Lite)/ Form C for the YA immediately after the year of incorporation, even though you have not received any Form C-S/ Form C-S (Lite)/ Form C filing notification.
Using the same example above, if your company closes its first set of accounts on 31 Dec 2021, and commences business or receives income in 2021, you are required to file the Form C-S/ Form C-S (Lite)/ Form C for YA 2022 by 30 Nov 2022.
How Bestar can Help
Bestar can help with corporate income tax filing in Singapore in a number of ways, including:
Providing expert advice on the corporate tax laws and regulations in Singapore.
Helping to prepare and file the corporate income tax return.
Identifying and claiming tax deductions and reliefs.
Representing the company before the Inland Revenue Authority of Singapore (IRAS) in case of any tax audits or enquiries.
Bestar has a team of experienced tax professionals who are familiar with the corporate tax laws and regulations in Singapore. We can help you to understand your tax obligations and ensure that your returns are filed correctly and on time. Bestar can also help you to identify and claim any tax deductions or reliefs that you may be entitled to.
In addition, Bestar can represent your company before the IRAS in case of any tax audits or enquiries. This can be a daunting experience, but Bestar can help you to navigate the process and protect your interests.
If you are a company in Singapore, Bestar can help you to with your corporate income tax filing. We can provide you with expert advice, help you to prepare and file your returns, and represent you before the IRAS.
Here are some of the benefits of using Bestar for your corporate income tax filing in Singapore:
Peace of mind: You can be confident that your taxes are being filed correctly and on time.
Cost-effectiveness: Bestar's fees are competitive and we offer a variety of payment options.
Convenience: Bestar can take care of all the paperwork and filing for you, so you can focus on running your business.
Expertise: Bestar's team of experienced tax professionals have a deep understanding of the corporate tax laws and regulations in Singapore.
If you are interested in using Bestar for your corporate income tax filing in Singapore, contact us for a consultation. We will be happy to answer any of your questions and help you to decide if our services are right for you.
Here are some additional information about Bestar:
Bestar is a leading tax advisory firm in Singapore.
We have been in business for over 15 years.
We have a team of experienced tax professionals.
We offer a wide range of tax services, including corporate income tax filing.
We are committed to providing our clients with the best possible service.
Bestar tax services:
Estimated Chargeable Income (ECI) Filing
Preparing a Tax Computation
Assistance to file your Corporate Income Tax Return: Form C-S/ Form C-S (Lite)/ Form C
Email reminders sent on your company’s Corporate Income Tax filing due dates with IRAS.
Bestar will also provide GST information to help you determine your business’ GST registration liability
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