With our vast experience handling tax issues for clients from various industries with different complexities, we are able to assist you on your tax filing matters. These include submission of your Estimated Chargeable Income (ECI) and income tax returns (Form C/C-S) for companies.
ECI
ECI is the estimate of a company’s chargeable income for a particular Year of Assessment. It is mandatory for a company to file its ECI with the Inland Revenue Authority of Singapore (IRAS) within three months from its financial year-end, unless the company qualifies for ECI waiver for that Year of Assessment.
(A)
A company does not need to file ECI in any Year of Assessment (YA) when both criteria are met:
- Annual revenue is $5 million or below for the financial year; and
- ECI is nil for the YA.
We are able to assist and advise you with your ECI filing obligations.
Form C-S / Form C submission
The annual filing due date for Form C-S/Form C is 30 November.
An income tax computation needs to be prepared to ascertain the numbers to be filled up in the Form C-S/C. There are various aspects to consider with preparing an income tax computation including:
- Taxability of income/gains
- Deductibility of expenses
- Capital allowance claims
- Foreign tax credit claims
- Applicability of tax incentives
Given our experience in advising on the tax matters for companies in various industries, we can advise you on the above and assist you to prepare your company’s income tax computation and Form C/C-S.
Below are some general information on tax filing in Singapore.
The corporate tax rate in Singapore is currently 17%. The effective tax rate for companies may be reduced under one of the following two schemes. There may also be tax rebates available for certain Years of Assessment:
Tax Exemption Scheme for New Start-Up Companies
| Chargeable Income | % Exempted from Tax | Maximum amount Exempted from Tax |
|---|---|---|
| First $100,000 | 75% | $75,000 |
| Next $100,000 | 50% | $50,000 |
The maximum exemption to be equipped is $125,000. This exemption applies to qualifying companies only for their first 3 consecutives YAs.
To qualify for this tax exemption, companies must satisfy these qualifying conditions:
- The company must be incorporated in Singapore;
- The company must be a tax resident in Singapore for that YA;
- The company must not have more than 20 shareholders throughout the basis period for that YA where:
- all of the shareholders are individuals “beneficially and directly” holding the shares in their own names; or
- at least one shareholder is an individual “beneficially and directly” holding at least 10% of the issued ordinary shares of the company.
The tax exemption is not applicable for the following types of companies:: (i) A company whose principal activity is that of investment holding; and (ii) A company whose principal activity is that of developing properties for sale, investment, or both.
Partial Tax Exemption for Companies
All companies ( including companies which do not qualify for the tax exemption scheme for new start-up companies ) are eligible for the Partial Tax Exemption for Companies.
- 75% tax exemption on the first $10,000 of normal chargeable income; and
- A further 50% tax exemption on the next $190,000 of normal chargeable income.
The maximum exemption to be enjoyed is $102,500 .
| Chargeable Income | % exempted from Tax | Amount exempted from Tax |
| First $10,000 | @75% | =$7,500 |
| Next $190,000 | @50% | =$95,000 |