It’s that season again — only this time there are a few changes you need to know about corporate tax in Singapore. In this article, we take an overview of what’s required for tax time in 2020, what has changed from 2019, and whether or not you might need help to complete your own corporate tax filings.
What Is the Deadline for Singapore Corporate Tax Filings?
According to the Inland Revenue Authority of Singapore (IRAS), all Corporate Income Tax Returns (Form C-S/ C) are compulsory for all companies, and are due no later than 15 December 2020. There are potentially serious penalties for companies that do not meet this deadline.
e-Filing Is Now Compulsory in Singapore
IRAS has declared it is now mandatory to complete all Corporate Income Tax Returns through their e-Filing system. This is compulsory for all companies.
For YA 2020, the e-Filing deadline is on 15 Dec 2020. However, from next year onwards, it will be a single filing deadline on 30 November 2021.
Also check out: What happens if you miss the corporate tax filing deadline »
Are There Extensions Available for Singapore Corporate Tax Filings Due to COVID-19?
IRAS has acknowledged that many Singapore companies may have endured difficulties during the COVID-19 global epidemic, and has therefore allowed for an extension to companies in a relevant situation.
For Singapore companies with their financial years ending in October 2019 to December 2019, IRAS is willing to provide qualifying companies a one-month extension until 15 January 2021 to e-File their YA 2020 CITY Returns.
Please note, IRAS will consider each extension on a case by case basis. To apply for the extension, you should apply through the Request for Filing Extension for YA 2020 Corporate Income Tax Return on the IRAS website. This is due by 27 November, 2020.
Are There Any Changes to Corporate Tax Filings for Singapore Companies in 2020?
- All corporate income tax returns are now required to be filed through the e-Filing system, as mentioned above.
- From Y/A 2020, companies that have an annual revenue of under $200,000 and are entitled to file Form C-S, will have the option to file Form C-S (Lite), which is a simplified version of the aforementioned form. You can find out more about the Form C-S (Lite) on the IRAS website.
- In an effort to help Singapore companies with cash flow:
- The Loss Carry-Back Relief scheme has been improved for YA 2020.
- A Corporate Income Tax Rebate of 25% of tax payable (capped at $15,000) will be given to Singapore companies for YA 2020.
What are the effective corporate tax rates for Singapore Companies in 2020?
While Singapore’s headline corporate tax rate is 17%, the effective corporate tax rate may be much lower, depending on revenue/chargeable income. You can also use our corporate tax calculator.
Singapore Effective Corporate Tax Rates YA 2020 |
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| Chargeable Income (S$) | Estimated Tax (S$) | Effective Corporate Tax Rate |
| 100,000 | 6,065 | 6.06% |
| 200,000 | 12,431 | 6.22% |
| 300,000 | 25,181 | 8.39% |
| 400,000 | 37,931 | 9.48% |
| 500,000 | 52,575 | 10.52% |
| 1,000,000 | 137,575 | 13.76% |
| 2,000,000 | 307,575 | 15.38% |
| 3,000,000 | 477,575 | 15.92% |
| 5,000,000 | 817,575 | 16.65% |
| 10,000,000 | 1,667,575 | 16.68% |
Can You Complete Your Singapore Corporate Tax Filings by Yourself, or Should You Outsource?
While it’s certainly possible to do your own Singapore corporate tax filings, in most cases we would recommend outsourcing to a qualified and competent Singapore tax firm.
While Singapore’s overall tax system is very generous to companies, it does take some time and expertise to optimise your taxes to ensure your obligations are minimised. There are literally dozens of tax incentives, tax reliefs, tax rebates, and tax treaties that will save you a considerable amount of money in tax obligations.
It should also be mentioned that while the Singapore Government encourages entrepreneurship through its famously liberal tax system it does not look kindly on companies that do not adhere to the rules; and that could mean harsh penalties for incorrect filings.
By hiring an established and trusted Singapore corporate tax firm, you will save your time, your hard-earned money, and even get invaluable advice on how to save money in the future.
Watch this Video: Singapore Corporate Tax Key Changes for YA2020 »
Where to Next for Filing Your Singapore Corporate Tax Return in 2020?
As we touched on earlier, while Singapore’s corporate tax structure is generous and transparent, it does take some digging to truly make the most of the system.
With that in mind, we really recommend you explore your options in terms of outsourcing your Singapore corporate tax filings. In our experience it saves our clients both time and money, not to mention potential headaches.
We encourage you to shop around and find the best Singapore tax firm possible — to help you have a hassle-free corporate tax filing process, and optimise your tax obligations for maximum profit.
If you’d like help in your corporate tax filing in 2020, STA has an expert team of qualified accountants, bankers, and lawyers to help you ensure your company takes absolute advantage of Singapore’s world-famous tax system.
If you have any questions about how you can optimise your Singapore corporate tax filings in 2020, please do contact us.
FAQs
- Yes, e-Filing of corporate tax from YA 2020 is now mandatory in Singapore.
- For YA2020, the e-Filing deadline is on 15 December 2020. However, from YA 2021 onwards, the deadline will be on 30th November.
- The corporate tax rate in Singapore is 17%. However, the effective tax rate can be much lower.
- Yes, there is a 25% corporate tax rebate in YA2020 and it is capped at $15,000. All companies are eligible for the rebate.
Need help navigating the tax changes for YA2020?
Our team of tax experts will take care of all your corporate tax needs so that you save time and avoid missing any deadlines.