How to File Corporate Taxes in Singapore?
Filing your corporate taxes for business in Singapore is important. So how are you supposed to go about the filing process to make sure you avoid any mistakes when you do tax filing Singapore. Here are some tips you need to use.
Taxation System for Companies in Singapore
The main attraction for most businesses in Singapore is its taxation system. Tax in Singapore is accrued from the income sourced in Singapore as well as the income sourced from the foreign countries.
In Singapore, there are no capital gains and there is no withholding the funds on the dividends.
In addition, there is no restriction on the foreign exchange transactions and the movement of capital meaning that the funds flow freely in Singapore.
The Singapore government has also put certain restrictions when it comes to lending its Singapore dollars to the non-residential financial institutions. However, these restrictions do not apply when lending SGD to the non- financial institutions such as the corporate treasury institutions.
What is the Rate of the Corporate Tax in Singapore?
The rate of the corporate tax in Singapore is 17% and it is usually calculated in the form of chargeable income made by the company which is the taxable revenues less the expenses and allowances.
The tax rates are the lowest in the world and there are high chances that a company can lower the rates if they take advantage of the available government subsidies and incentives.
Determination of the Fiscal Year
Each company in Singapore can determine its fiscal year and it does not have to be December 31st. It is also advised that every company should file their returns after 365 days to enjoy the tax benefits given by the government.
Filing Requirements for the Annual Return
Each company is required to file its annual returns to the Accounting and Corporate Regulatory Authority (ACRA) which is the authorized regulator of all businesses and the accounting aspects in Singapore. It should happen within one month of the Annual General Meeting (AGM) of the company. Consolidated returns are not allowed and every company has to file its own business returns.
Filling of Form C-S and Form C
Each company is required to file their returns even if they are making losses. The companies that do not meet form C-S qualification will be required to fill form C together with the financial statements, supporting schedules and the tax computations.
What are the Filing Mistakes You Need to Avoid When Filing Income Tax?
●Making an understatement of your income
●Duplicating your claims of the operating expenses.
When you want to file taxes in Singapore, it is important for you to adhere to the instructions given. You will be able to take advantage of tax filing Singapore privileges and use your capital wisely to grow your business.