Every company in Singapore is required to file its annual returns (AR) to the Accounting and Corporate Regulatory Authority (ACRA) – the national regulator of business entities and public accountants in Singapore – within one month of its Annual General Meeting (AGM) date. As consolidated returns are not permitted, each company is required to file its returns separately.
Similarly, every company must file its tax returns to IRAS by November 30, of the assessment year for income earned in the preceding accounting year. e-Filing will be made compulsory in a phased approach from YA 2018.
Importantly, companies in Singapore are allowed to carry forward the unabsorbed trade losses and capital allowances to subsequent years to offset against the income of those years until the trade losses are fully utilised.
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When is Corporate tax filing season in Singapore?
The due date for submitting corporate income tax returns (Form C-S/ C) for Year of Assessment (YA) 2018 is:
- e-filing: December 15, 2018
- Paper filing: November 30, 2018
These dates are the same every year.
GIRO is the preferred method of payment as it allows tax by installments. Singapore-registered companies can enjoy up to 10 interest-free monthly installments when they file their Estimated Chargeable Income electronically within three months from their financial year end.
Companies must pay their tax within one month from the date of the Notice of Assessment (NOA). When payment is not received by the due date, a 5% penalty can be imposed on the overdue tax. A 1% additional penalty per month may be imposed if the tax is still not paid 60 days after the 5% penalty is imposed. The 1% penalty is imposed for each completed month that the tax remains unpaid, up to a maximum of 12% of the tax outstanding.
IRAS informs that currently, about 81 percent of the corporate taxpayers file their tax returns on time. Companies have 11 months (for companies with financial years ending in December) to 22 months (for companies with financial years ending in January) to prepare and file their returns.
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