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Who Pays Corporate Tax in Singapore? | Corporate Tax Filing In Singapore
Today we’d like to inform all about Corporate Tax Filing In Singapore.
Please refer to the youtube and the details!
Who pays corporate tax in Singapore?
Income Tax Act
: No matter the firm’s tax-residency status, it is obligated to pay Singapore’s corporate tax on any taxable income gained by doing business in Singapore, plus foreign income sent into the country.
What constitutes a Singapore company?
: The business entity is listed under the law in Singapore, in particular, the Companies Act 1967;
: The company’s name usually includes “Ltd” or “Pte Ltd”;
: The foreign company is registered in Singapore, including a foreign firm’s branch.
Things to note
: A partnership or sole proprietorship business is not required to do corporate filing in Singapore.
: A company is deemed a tax resident of Singapore when its management is carried out in the country (i.e. the firm’s board meetings take place in Singapore)
: Singapore tax resident companies enjoy the reliefs from the Double Taxation Agreements that Singapore holds with treaty countries.
What Foreign and Local Companies in Singapore need to know about Corporate Tax
General Overview
: Singapore’s tax rate is 17% (applies to new corporations’ 3-year exemption system & special tax rebates)
: Existing businesses (i.e. investment holding & property development firms) may be eligible for partial tax exemption.
Start-up Tax Exemption Scheme (2018 budget)
: 75% on the initial SGD 100,000 of the normal chargeable income
: 50% on the following SGD 100,000 of the normal chargeable income
: Applies to qualifying companies only for their first 3 consecutive Yas. From 4th YA onwards, companies can enjoy partial tax exemption.
Filing and Payment Process of Singapore’s Corporate Tax
Filing on Singpass
: Effective April 11, 2021, companies in Singapore are obligated to use the government digital facilities for businesses, known as G2B, using Singpass.
: All filing is done via mytax.iras.gov.sg.
Step 1 : File the ECI or Estimated Chargeable Income form, unless exempted
: The company provides the Inland Revenue Authority of Singapore with an estimated figure of its taxable income within a quarter of its financial year.
: All companies must file the ECI within three months from their financial year-end. The exception is when the company meets the requirements for the waiver on ECI filing.
Step 2 : Receive IRAS’ NOA or Notice of Assessment
: After filing, IRAS will check the forms to facilitate their issuance of an NOA.
: The NOA provides a detailed report of the tax liabilities of the company. It also gives the company a chance to object to the tax assessment of IRAS if it wants to.
Step 3 : Pay the Assessed Corporate Tax
: All companies need to settle the tax amount within 30 days from the date of receipt of the NOA unless qualified to pay by installment.
: Payment can be through various methods, such as internet banking, interbank GIRO, telegraphic transfer, or cheque.
Penalties
- Non-payment or late payment of corporate tax
- Tax evasion
- Wrong tax filing
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