The Ultimate Guide to Filing Your 2023 IRAS Corporate Income Tax Returns by 30th November 2023

Filing your IRAS corporate income tax returns might seem like a daunting task, especially if you have recently launched a business or contemplating starting one in Singapore. The pressure of meeting submission deadlines can be overwhelming, potentially casting a cloud over your business's reputation and financial stability. However, with a well-thought-out strategy, this compliance journey can be both manageable and enlightening.

Navigating Tax Filing with Confidence

For any company registered to do business in Singapore, filing Annual Tax Returns (and for some, ECI filing) is compulsory.

Filing obligations vary depending on several factors. For starters, it is essential to understand that most businesses will need to submit 2 tax filings to IRAS (Inland Revenue Authority of Singapore) for each Year of Assessment (YA): (1) Estimated Chargeable Income or “ECI”, and (2) one of the C-Forms; Form C-S, Form C-S (Lite) or Form C.

ECI is an estimate of the company's taxable income for the Year of Assessment (YA). Even if the company's revenue is not taxable or there are no profits, an ECI submission is still required, unless it meets one of the exception criteria. ECI filing is always due for electronic submission 3 months after your FYE - i.e. by March 31st if your FYE is December 31st.

Companies are also required by November 30th of each year to submit an Annual Return to the IRAS, which includes the company's financial statements and tax computations.

Filing Your IRAS Corporate Income Tax Return

With November 30th fast approaching, it’s important to start preparing your submission now. To decide which form to use among Form C-S, Form C-S (Lite), and Form C, consider the size of your company's revenue and the complexity of its income sources. If your company is small and its income straightforward, you can opt for Form C-S or Form C-S (Lite). For larger companies or those with intricate financial operations, Form C is likely more suitable. Make sure to carefully review the criteria and guidelines provided by IRAS to ensure you're using the correct form.

File Your IRAS Corporate Income Tax Returns in 4 Steps

Successfully managing your corporate tax filing demands a proactive approach. Here are the four essential steps to seamlessly get your business through this process:

1. Thoroughly examine your YA (Year of Assessment) 2023 Financial Report: This step involves meticulous scrutiny of various components:

• Taxable and tax-exempt income: Delve into the details of your income sources. Identify what falls under taxable and tax-exempt categories, aligning with the guidelines provided by IRAS.

• Allowable and disallowable expenses: Assess your business expenses, distinguishing between allowable and disallowable items.

• Capital allowances: Calculate the capital allowances applicable for the relevant period to ensure you're optimising your tax benefits.

• Reliefs and unitised items: Examine available reliefs and any carried-forward unitised items, such as capital allowances, trade losses, and donations.

2. Tax liability computation: Assemble all the computed data to arrive at your company's tax liability for YA 2023.

3. Submit through the IRAS Portal with CorpPass Login: Submit your tax computation details through the IRAS portal using your CorpPass login credentials. This streamlined approach simplifies the process and enhances accuracy.

4. Pay your tax liability: Once you receive the Notice of Assessment from IRAS, it's time to settle your tax liability. Timeliness is key; ensure payment is made on or before the specified due date. This step closes the loop on your tax obligations for YA 2023.

Remember, non-compliance bears a price. Currently, the penalty for late filing ranges between 5% and 12% of unpaid taxes, contingent on the duration of the delay.

Plan for the Future

As you successfully complete your tax filing for the year, take a forward-looking approach. Consider how the insights gained from this process can inform your financial strategies moving forward. Use the experience to optimise your tax planning for forthcoming years.

Accela Finance clients have peace of mind that timely corporate tax preparation and filing are assured. If you're a business owner seeking assistance with your annual return filing or setting your financial strategies for future tax seasons, our team is ready to provide support. Reach out to us at hello@accela.asia to explore how we can be of service.