As a business owner in Singapore, it is essential to know and stay on top of your tax obligations to avoid penalties and fines. Having complete knowledge and understanding of all the different tax forms required by the Inland Revenue Authority of Singapore (IRAS) is crucial for business owners. It ensures that your business remains compliant with the tax laws and regulations of the country. You may have professional income tax services available but knowledge about these forms will help you understand more.
In this blog post, we will share some of the most crucial and important tax forms that business owners in Singapore need to understand.
List Of Important Tax Forms For Business Owners To Understand
Here we have compiled an entire list of tax forms important for businesses. Every business owner can make a checklist of it.
Form C-S/C
Form C-S/C is the annual tax return form that companies in Singapore need to file with IRAS to declare the company’s taxable income. The form is used to report the company’s income, expenses, and other relevant tax information for the year of assessment. Companies that meet specific criteria can file the shorter version of regular Form C-S, with the IRAS. This form is usually due by 30 November of each year.
The criteria for filing Form C-S include having a revenue of $5 million or less. Moreover, the companies must not be deriving income from investments, and not have more than 20 shareholders. If your company does not meet these criteria, you will need to file the regular Form C. The deadline for filing Form C is usually December of each year.
Form IR8A
Form IR8A is a tax form that employers in Singapore must file for all their employees who are working in Singapore. The form reports the employee’s income, tax deductions, and other relevant information for the year of assessment. Employers must file this form by March of each year.
In addition to Form IR8A, employers must also file Form IR21 if they are terminating or sending an employee overseas for more than three months. Form IR21 reports the income earned and taxes paid by the employee up to the date of termination or departure.
Form GST F5, F7, & F8
Goods and Services Tax (GST) is a tax levied on the supply of goods and services in Singapore. If your business is registered for GST, you will need to file Form GST F5, F7, or Form GST F8 to report your GST transactions to the IRAS.
Form GST F5 is for businesses that are required to file GST returns annually on the transactions made within that year. F7 is for the businesses that need to correct any mistakes that happened in the last GST filings. Lastly, form F8 is for those business owners who are canceling their GST registration and need to submit a final GST record. The due date for filing these forms depends on the accounting period chosen by the business.
Schedule C & SE
Business owners can use Schedule C to report the loss or profit of the business over their accounting period. You need your company’s balance sheet, financial loss or profit statement, and list of expenditures to fill out this form. Schedule C is for sole proprietors and a single-entity limited liability company (LLC).
On the other hand, Schedule SE is used by business owners to report the social security and medicare taxes of the company. You can submit this form along with schedule C to give an account of self-employment tax.
Form IR37
Form IR37 is another tax form important for corporate companies. It reports the income and tax deductions of a non-resident employee working in Singapore. If your company has non-resident employees, you will need to file this form to report their income and tax deductions for the year.
It is important to understand that the above-mentioned list of tax forms is not exhaustive. There are various specific tax forms present that business owners have to file based on their unique circumstances. It is suggested to work with a professional tax and accounting services provider in Singapore to stay compliant with the tax laws. These service providers help you with tax planning, preparing documents, compiling financial statements, and filing the necessary tax forms. It also helps you ensure that your business remains in compliance with the tax laws of the country.
Take Away
Business owners working in Singapore must understand the income tax requirements and important forms for tax filing. It helps them file necessary tax forms accurately and on time to avoid fines and penalties. Professional income tax services providers also help businesses in achieving compliance with the regulatory body. So, get your facts correct and stay on top of income tax returns for the success of your business!
