How to Complete Form C

Q1. How do I claim for qualifying deductions/allowances under PIC?

You must:

1) Check Part I Box 2 on Page 1 of Form C; and

2) Complete Section E of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)".

Q2. My company spent $300,000 in YA 2013 to purchase computers that qualify for enhanced allowances under PIC. It has opted to defer its claim for capital allowances on the computers. How should I complete Form C?

You are required to:

1) Check Part 1 Box 2 on Page 1 of Form C;

2) Complete Part IX Box 29 on Page 5 of Form C with “$300,000”; and

3) Complete Section E Box 22 of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)” as follows:

- Total cost incurred = $300,000
- Enhanced deductions/allowances = $900,000*

*300% x qualifying cost of $300,000

Q3. My company spent $280,000 in YA 2012 to purchase computers that qualify for enhanced allowances under PIC.

It deferred its claim for capital allowances on the computers in YA 2012, and only makes a claim under Section 19A(2) of the Income Tax Act (i.e. write off in one year) in YA 2013. How should I complete Form C for YA 2013?

You are required to:

1) Check Part 1 Box 2 on Page 1 of Form C.

2) Complete Part VII Box 19 on Page 4 of Form C with “$1,120,000*”; and

3) Complete Section B Box 18 of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)” with “$1,120,000*”.

*400% x $280,000

Q4. My company acquired computers of $100,000 that qualify for enhanced allowance under PIC on hire purchase terms in YA 2013. Principal repayments made in YA 2013 amounted to $50,000. My company would like to make a claim for capital allowance under Section 19A(2) of the Income Tax Act (i.e. write off in one year) on the cost of computers. How should I complete Form C?

You are required to check Part 1 Box 2 on Page 1 of Form C.

You are also required to complete:

1) Part VII Box 19 on Page 4 of Form C with “$200,000*”;

2) Part IX Box 29 on Page 5 of Form C with “$100,000”;

3) Section B Box 18 of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)” with “$200,000*”; and

4) Section E Box 22 of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)” as follows:

- Total cost incurred = $50,000
- Enhanced deductions/allowances = $150,000**

*[$50,000 / $100,000] x [$100,000 + (300% x qualifying cost of $100,000)]
**[$50,000 / $100,000] x [300% x qualifying cost of $100,000]

Q5. My company paid $450,000 to a research and development (R&D) organisation to conduct qualifying R&D activities in Singapore on behalf of my company. 

My company is claiming 60% of the fees under PIC for YA 2013. How should I complete Form IRIN 301?

You are required to:

1) Check Part 1 Box 2 on Page 1 of Form C; and

2) Complete Section E Box 26 of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)” as follows:

- Total cost incurred = $450,000
- Enhanced deductions/allowances = $675,000 (250% x $270,000*)

*Deemed qualifying R&D expenditure = 60% x $450,000

Can I submit only Page 1 of Form C if Box 1 is checked but Box 2 is not checked?

You can submit only Page 1 of Form C if Box 1 is checked and the company does not have any unutilised losses or donations brought forward or to be carried forward.

If Box 2 is not checked, the company could have owned investments during the basis period but such investments do not generate any income for the year of assessment. The company can still submit only Page 1 of Form C provided it also does not have any unutilised losses or donations to be carried forward.

Boxes 1 & 2

How do I claim for tax exemption scheme for new start-up companies?

You must complete Part IV on Page 1 of the Form C as follows:

1. If the company satisfied all the qualifying conditions, enter “1” (Yes) in Box 1.

2. State the first YA upon incorporation in YYYY format in Box 2.

If the tax computation and accounts are maintained in a currency other than the Singapore dollars, how do I complete the Form C to show that the currency is not Singapore dollars?

Form C should be completed in Singapore dollars and not in the foreign currency. Please refer to the e-Tax Guide ‘Filing of Income Tax Computations in Functional Currencies other than Singapore Dollars’  for details.

Box 1a

Trade/Business income

Q1. What is the amount to be declared in Box 1a?

The amount to be declared is the adjusted profit/loss figure after deducting unutilised capital allowances brought forward, current year capital allowances and unutilised losses brought forward.

Refer to Pages 7, 16 and 17 of Essential information to note when filing Form C  for examples on how to complete Box 1a.

Q2. How do I arrive at the adjusted profit/loss figure?

This is the amount after adjusting the net profit/loss as per the accounts for non-taxable items, separate source income, and disallowable/restricted expenses.

To note:

The amount to be declared in Box 1a should be the amount before deducting the exempt amount under the partial tax exemption scheme/tax exemption scheme for new start-up companies*.

If the amount is a loss/negative figure, enter “X” in the box on the extreme left hand side.

You may download the Basic Corporate Tax Calculator to help you compute the adjusted profit/loss and chargeable income.

*Applicable to new companies which satisfy the qualifying conditions and have indicated so on Part IV on Page 1 of the Form C.

Q3. For an investment holding company receiving passive income, should I reflect the net investment income in this box?

No. Please complete Boxes 1b to 1f on Page 2 of Form C, where applicable.

Box 1c

Trust distribution

Trust distribution made out of income already taxed at the trustee level need not be included in this box.

Amount to be declared include REIT distribution.

Box 1d

Rent - S10(1)(f)

Q1. Should the gross rent or net rent after deducting rental expenses be declared?

The net rent is to be declared.

Q2. What amount should be filled in Box 1d if the net rent after deducting rental expenses is negative?

If the net rent after deducting rental expenses (before Industrial Building Allowances/Land Intensification Allowances) is negative, enter “0”.

Q3. My company claimed Industrial Building Allowances (IBA)/Land Intensification Allowances (LIA) against its rental income for YA 2013 as follows:-

Your company is required to complete Box 1d with “$120,000”.

The IBA/LIA claim of $150,000 should be included in Box 1a.

Box 2

Foreign income received in Singapore

Q1. What kind of income should be included in this section?

This refers to income sourced outside Singapore and is remitted to Singapore, e.g.

• Foreign dividends and interest income received from overseas. For foreign dividends, if double tax relief is claimed, the amount to be entered should be the regrossed amount net of allowable expenses (if any).
• Profits of overseas branches or permanent establishments remitted to Singapore.

Please exclude foreign income remitted into Singapore but exempted under Sections 13(8) and 13(8A) of the Income Tax Act (ITA). For foreign income exempted under Sections 13(8) and 13(8A) of the ITA, please complete Box 15 on Page 4 of Form C and where applicable, Section D of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)”.

Q2. Where should I declare any foreign income not remitted to Singapore?

This need not be indicated in the Form C. However, the amount should be shown in your tax computation.

Box 5

Carry-back of current year capital allowances/losses

The amount to be entered is the current year capital allowances/losses to be carried back to the immediate preceding year of assessment, subject to a maximum of $100,000.

Example:
Company A has assessable income of $80,000 in YA 2012.

It has total unutilised capital allowances and trade losses (i.e. loss items) of $120,000 arising from YA 2013 and is electing to carry-back such loss items to YA 2012.

Subject to meeting the business continuity test and substantial shareholding test, the amount of loss items that can be carried back to YA 2012 is restricted to the lowest of:

• the actual amount of loss items in YA 2013 (i.e. $120,000);
• the assessable income for YA 2012 (i.e. $80,000); and
• $100,000 (this is the maximum amount of loss items that can be carried back for any YA).

In this scenario, the amount of loss items that can be carried back to YA 2012 is $80,000. As such, please complete Box 5a with “$80,000”.

Box 6a

Research & development (R&D) tax allowance

Can I utilise my R&D tax allowance and also claim enhanced deduction on R&D expenditure under PIC scheme?

No. You must make a choice between utilising your R&D tax allowance granted in YA 2009 and/or YA 2010 or claiming enhanced deduction under PIC.

Boxes 8 and 10

Chargeable income

If the amount is negative, enter "0".

Q1. Should the chargeable income be the amount before or after deducting the exempt amount under the partial exemption scheme or tax exemption scheme for new start-up companies?

The chargeable income to be declared should be the amount before deducting the exempt amount. IRAS will compute the exempt amount under the partial tax exemption scheme or tax exemption scheme for new start-up companies* when raising the assessment.

*Applicable to new companies which satisfy the qualifying conditions and have indicated so on Part IV on Page 1 of the Form C.

Q2 Should the chargeable income in Box 10 include concessionary income?

Yes, the amount should include income taxed at normal rate and concessionary rates (Details of the concessionary income should also be filled in Box 11).

Q3. Should the chargeable income include exempt income arising from tax incentives?

No. Exempt income arising from tax incentives should be filled in Box 15.

Box 13

Tax deducted at source

Box 14b

Tax to be remitted under Sections 92(1) and 92(2)

The amount to be entered is the tax remission, reduction or refund granted by the Minister.

Companies will be granted a 30% Corporate Income Tax (CIT) Rebate capped at $30,000 for YA 2013.  Please do not enter the CIT Rebate in Box 14b. The amount of tax payable/ repayable after deducting the CIT Rebate should be entered in Box 14c.

Box 15

Exempt income/loss for current year of assessment

The amount to be entered is the current year adjusted exempt income/loss after current year capital allowances and donations, where applicable.

It includes:

• Foreign income exempted under Sections 13(8) and 13(8A) of the ITA; and
• Exempt income arising from tax incentives.

It excludes:

• One-tier exempt dividends received;
• Any part of income that is subject to tax at concessionary tax rate; and
• Exempt amount computed under the partial tax exemption scheme/tax exemption scheme for new start-up companies.

Please also complete Section D of “Additional Information on Income and Deductions in Part VI to XII of Form C (Form IRIN 301)”, where applicable.

Boxes 16 and 17

Claim of unutilised capital allowances/losses/donations

Q1. If my company has an adjusted loss but unutilised capital allowances brought forward has been used to offset income from separate source/balancing charge, how should Box 16 be completed?

Please indicate "1" (Yes) in Box 16 since there is a claim for unutilised capital allowances in Section 1 of Part VI.

Q2. When should Box 17 be completed?

Only when Box 16b is indicated with "1" (Yes), i.e., there is a substantial change in the company's ultimate shareholders and their shareholdings and the company is applying for a waiver of the shareholding test under Sections 23(5) and/or 37(16) of the ITA.

Q3. Where unutilised capital allowances/losses are claimed and part of the capital allowances/losses is to be disregarded for certain periods (i.e. company is not claiming for a waiver under Sections 23(5) and/or 37(16) of the ITA), how should the relevant boxes be completed?

Box 16 is to be completed with "1" (Yes)

Box 16b is to be completed with "2" (No)

You may leave Box 17 blank since no unutilised capital allowance/loss is claimed under Sections 23(5) and/or 37(16) of the ITA.

The amount of capital allowances/losses disregarded should be shown in the tax computation.

Boxes 18 to 24

Unutilised capital allowances/losses/donations b/f and c/f

Q1. Where do I get the amount of unutilised capital allowances/losses/donations brought forward (b/f)?

The b/f amounts to be entered in Boxes 18, 21 and 23 are the carried forward (c/f) amounts from the YA 2012 Notice of Assessment, or from your YA 2012 tax computation if the notice has not been issued to the company.

Q2. If the unutilised capital allowances and losses are to be totally disregarded and not to be set-off against the income for the current year of assessment because of a substantial change in shareholdings, do I still have to complete Box 18 and Boxes 20 to 22?

Yes. The amount to be entered in Boxes 18 and 21 will be the brought forward balances. Boxes 20 and 22 are to be completed with zeros.

Q3. Should the amounts entered in Boxes 20, 22 and 24 be before or after group relief?

This should be the amounts after group relief.

Q4. How do I compute the current year capital allowances for the purposes of completing Box 19?

The amount to be entered in Box 19 will be the total capital allowances (including enhanced capital allowances under the PIC scheme), industrial building allowances and land intensification allowances claimed in the current year of assessment, i.e. IA¹ + AA² + BA³ – BC⁴. If the total amount is negative amount as a result of BC, enter "X" in the box on the extreme left hand side.

¹Initial allowance
²Annual allowance
³Balancing allowance
⁴Balancing charge

Q5. Where do I declare the amount of approved donations made during the financial year?

There is no need to declare the donation amount in Form C as the tax deduction for approved donations made during the financial year 2012 will be automatically reflected in the company’s tax assessment based on information from the Institution of a Public Character (IPC).

The amount of unutilised donations to be carried forward is to be entered in Box 24.

Q6. Is there any time limit to carry forward unutilised donations?

With effect from YA 2003, any unutilised donations can be carried forward to set-off against the income for the subsequent YA up to a maximum of 5 years if there is no substantial change in the company's ultimate shareholders and their shareholdings.

For example, if the company has balance of unutilised donations from YA 2007 as at the end of YA 2012, these should be disregarded and not carried forward to YA 2013.

Box 25

Income not previously reported

Where should the amount of additional expenses incurred for back years (commonly termed as prior years' adjustments) be indicated?

There is no provision for this item in Form C. However, the adjustments may be reflected in the relevant revised tax computation and supporting schedules.

Box 26

Receipts claimed as not taxable (including real estate)

Does the "amount" represent gross sale proceeds or net profit?
Does receipt mean cash receipt? Is a waiver of loan of a capital nature excluded?

This represents net profit.

Receipts here include both cash and non-cash receipts.

A waiver of loan that is of a capital nature is therefore included.

Box 29

New assets

Q1. If my company is claiming capital allowance for the first time for assets purchased in previous years, should the amount be included in Box 29?

No. The amount to be declared is the cost of new assets purchased during the year for which capital allowances and/or industrial building allowances are/would be claimed.

Q2. Should I include the cost of the new assets purchased during the year if I defer the capital allowance and/or industrial building allowance claim?

Yes.

Q3. Does Part IX include new assets purchased under hire purchase? If yes, should the cost of the assets be the principal cost or principal repayments made during the year?

Part IX includes assets purchased under hire purchase and cost of assets refers to the principal cost.

Box 30

Q1. What is the amount to be declared in Box 30?

The amount to be declared is the current year qualifying R&R expenses incurred on renovating or refurbishing business premises. This is subject to a cap of $300,000* for each relevant three consecutive basis periods.

*Cap increased to $300,000 with effect from YA 2013.

Box 31

Withholding tax

Q1. If my company is making a claim for deduction on a payment made to a non-resident that is exempt from withholding tax under the provision of the Avoidance of Double Taxation agreement (DTA), how should Box 31 be completed?

Payments exempt from withholding tax should not be included in Part XI of Form C.

Q2. My company has made a provision for royalty payable to non-residents. Since the royalty is not due for payment, withholding tax has not been complied with. In addition, no tax deduction has been claimed for the provision. In this case, how do I complete Part XI?

If the payment to non-resident is not deemed paid or payable under Section 45/45A/45B/45D/45F/45GA/45H, Box 31 should be completed as "2" (No).

Where a company has branches overseas, should Part XII be completed on the basis of the company's Singapore operations only, or the consolidated results as reflected in the audited accounts?

Balance sheet items are to be completed based on the consolidated results. Profit and loss account items are to be completed based on the results of the Singapore operation.

Box 32

Revenue

This refers to the company's main source of income excluding separate source income such as interest.

Examples:

1) The revenue of an investment company would be its investment income (e.g. dividend income, interest income).

2) The company is in a manufacturing trade and also derives passive income such as interest. The revenue would be the income derived from its manufacturing trade.

3) For a service company, the revenue is to be determined as follows:

• Where the services are provided free or at cost to related parties, the revenue is the cost recovered from related parties.
• Where services are provided at cost plus mark-up, the revenue is the cost plus mark-up.
• Where the services are provided at arm’s length price, the revenue is the service income or management fees received.

Box 33

Purchases

Q1. Does "Purchases" refer to cost of sales?

No. However, if the figure for "purchases" is not available in the accounts, fill in the figure for "cost of sales" instead, if this figure is available.

Q2. Does "Purchases" include opening stock?

No.

Box 34

Gross profit/loss

This refers to the amount after taking into account the cost of goods sold. If there is no cost of goods sold, the gross profit should be the same amount as the revenue.

If the amount is a loss/negative figure, enter “X” in the box on the extreme left hand side.

Box 36

Sales, general and administrative expenses (Exclude amount in Box 37 and Box 38) 

Can the company fill in the required figure as per the description in the company's audited accounts? If there is no such description in the accounts, can the figure be that of the total of all expenses after the gross profit line?

The company can fill in the required figure as per the description in the company's audited accounts. Where there is no such description in the accounts, the total of all expenses after the gross profit line can be used as long as the company is of the view that this figure is for sales, general and administrative expenses. Finance cost need not be included in Box 36 unless the company has included finance cost as part of Sales, General and Administrative Expenses. Please also exclude directors’ fees, directors’ remuneration and head office expenses as these items should be declared in Boxes 37 and/or 38 separately.

Box 37

Directors’ fees and remuneration

The amount should include both directors’ fees and directors’ remuneration. Directors’ remuneration includes salaries, leave pay, commissions, bonuses, gratuities, allowances, other emoluments paid in cash and contributions made to approved pension or provident funds which are deductible under the Act.

Box 39

Other receivables

Where the accounts have an item called "Other receivables, deposits, and prepayments", can a figure that represents the total of the three components be used? On the other hand, if there is no such item in the account, is the figure '0' to be filled?

If there is a breakdown of "Other receivables, deposits, and prepayments" in the Notes to the Accounts, please fill in the figure for "Other receivables" in Box 39. However, if there is no such breakdown, the figure for "Other receivables, deposits, and prepayments" can be used. In the case where the item "Other receivables, deposits, and prepayments" is not available anywhere in the accounts, please fill in the figure '0'.

Box 40

Trade receivables

Can the amount of trade receivables, net of provision be entered if the gross amount of trade receivables is not available anywhere in the accounts?

Yes, the amount of trade receivables, net of provision amount can be used if the gross amount of trade receivables is not available anywhere in the accounts. The figure should also include third party and related trade debts.

Box 41

Trade payables

Does trade payables include third party trade creditors, inter-company trade payables, accrued operating expenses, and hire purchase creditors?

The amount of trade payables includes third party trade payables and inter-company trade payables, but excludes accrued operating expenses and hire purchase creditors.

Box 43

(Total of Boxes 32 up to 42)

If you are completing the Form C for previous years of assessment, you may download:

Guide to completing Form C for the Year of Assessment 2012 (80KB)

Guide to completing Form C for the Year of Assessment 2011 (71KB) 

From YA 2011 onwards, Form IRIN 312 (Details of Interest-Free/Subsidised Loans to Individual Directors/Shareholders) is no longer applicable.