SINGAPORE: The Inland Revenue Authority of Singapore (IRAS) urges all companies to submit their Corporate Income Tax (CIT) Returns by the statutory deadline of November 30, 2024. Year after year, IRAS has noted that approximately 10% of companies fail to meet their CIT filing obligations despite multiple reminders. In 2023 alone, over 4,700 companies faced prosecution for late or non-filing of their tax returns, with total penalties exceeding $4.9 million.
Enforcement Actions for Non-Compliance
Companies that do not file their CIT Returns on time may incur fines of up to $5,000. Depending on the company’s compliance history, IRAS may opt for a compounded offense rather than prosecution. Companies receiving a letter of composition must pay the specified amount and file the overdue tax return; failure to do so may result in a Notice to Attend Court. Companies that neglect to file for two or more years could face court-ordered penalties amounting to double the assessed tax, in addition to the fine.
Accountability of Company Directors
In cases of non-filing, IRAS may issue notices to company directors to request financial information. Directors who fail to provide this information by the deadline may face penalties of up to $10,000 or court attendance. Non-compliance may lead to the issuance of a warrant of arrest for the director. In 2023, 1,690 court summonses were issued to directors who did not comply with such notices.
For further details regarding the penalties for late or non-filing of CIT Returns, please visit the IRAS webpage.
Preparation for Filing by November 30, 2024
Approximately 262,000 companies are expected to file CIT Returns this year. IRAS reminds all companies, including those with no business activities or reporting losses, to file their Year of Assessment (YA) 2024 CIT Returns by the deadline of November 30, 2024.
To avoid a last-minute rush, companies are encouraged to prepare their financial statements, tax computations, and supporting documents in advance. Timely preparation and filing not only help avoid unnecessary fines but also allow for thorough review, minimizing errors.
IRAS Support for Tax Filing
IRAS is committed to simplifying the annual tax filing process:
- The Basic Corporate Income Tax Calculator provides guidance through tax computations and checks for common errors.
- Companies using software, like Xero Accounting Software, with seamless filing capabilities can save up to 95% of filing time, ensuring improved compliance as their tax computations and returns are generated and filed automatically. They may also receive an automatic extension of the CIT filing due date by 15 days to December 15, 2024.
- Eligible companies with annual revenue of $200,000 or less can file Form C-S (Lite), which requires only six essential fields—two-thirds fewer than Form C-S.
For assistance with the YA 2024 tax filing, companies can visit the IRAS website or explore a range of e-learning videos. They can also chat with IRAS officers via live chat, call the helpline at 1800 356 8622, or contact IRAS through myTax Mail for additional support. Companies that identify errors in past CIT Returns should proactively disclose them to IRAS to avoid substantial penalties.
Source: IRAS
