Singapore is one of the most attractive destinations globally for foreign investments. It is mainly due to the simple corporate tax structure and business-friendly taxation system. The tax is divided into two significant brackets:
- Personal Tax – Paid by Individuals
- Corporate Tax – Paid by companies
The Inland Revenue Authority of Singapore (IRAS) is the central body responsible for all the matters related to taxation in the country. One can either file the taxes offline by submitting physical documents at the designated centers located throughout the country or online through the myTax portal.
For Corporates, the tax is calculated based on revenues through mainly two sources
- Income derived from Singapore.
- Foreign income remitted to Singapore.
The process of filing corporate tax is as follows:
- File Estimated Chargeable Income (ECI) – ECI details need to be filed within three months of the end of the financial year.
- FIle Annual Income Tax Return – This is done by submitting Form C to declare the company’s annual income.
- Receive IRAS’ Notice of Assessment (NOA) – Once IRAS reviews the details filed, they will issue an NOA if everything is in place.
- Pay the Taxes – Companies need to pay their taxes within one month from the date of NOA. They can do it via GIRO, PayNow QR, AXS, Internet Banking, and other electronic payment modes.
All the corporates incorporated in Singapore have to file their respective taxes by filing Form C and submitting it to the concerned authorities.
There are three types of Form C:
- Form C
- Form C-S
- Form C-S (Lite)
What is Form C-S (Lite)?
To simplify the process of filing the tax returns for smaller companies, IRAS introduced Form C-S, a simplified version of form C. It is a 3-page document with only 18 fields to be filled. Companies with annual revenues equal to or lower than SGD 5 million are eligible to fill the Form C-S.
IRAS has gone one step further to launch an even more simplified version of Form C-S which is known as Form C-S (Lite). This form has only six fields to be filled and takes only 10 minutes if all the required information is readily available.
The main documents that are required for filing this form are:
- Financial statements.
- Tax computations.
- Supporting schedules.
The C-S (Lite) form was introduced from YA2020 and needs to be filed by 30 Nov every year.
A dormant company also needs to file its Corporate Income Tax Return (Form C-S/ Form C-S (Lite)/ Form C) by 30 Nov every year unless the company has been granted a waiver to file one.
Who can File Form C-S (Lite)?
Companies with annual revenue less than or equal to SGD 200,000 are eligible to fill this form. However, they must also fulfill the eligibility conditions for Form C-S.
- The company is incorporated in Singapore.
- The company’s income is taxed at the standard corporate rate of 17%.
- The company is not claiming any special schemes like foreign tax credits, carry-back of current year capital allowances or losses, etc.
The form has to be filed by someone from the company or an external consultant with the required authority.
How to File Form C-S (Lite)?
The form can be submitted online on the myTax portal. No physical documents are required to be submitted while filing this form; however, the company still needs to prepare relevant documents to enter the correct information.
Steps to File the Form:
- Login on myTax portal and select “File form C-S/C” under the corporate tax header
- Click on “e-file.”
- Enter the details of the person filing the form and click save.
- Print the acknowledgment and click on “Proceed to E-File.”
- Enter the revenue of the company. If it is below SGD 5 million, the user will get the option to file Form C-S and C-S Lite.
- Check if the company meets all the relevant criteria for C-S (Lite).
- Enter the financial period for the return which is being filed.
- In part B, enter the profit/loss details of the company.
- In part C, again enter the revenue and click on “Confirmation Page.”
- Verify all the details and click on “Submit.”
- Note down the estimated tax payable and acknowledgment number.
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