Tips for SMEs on Form C Filing

Due date for filing of Form C
Checklist to guide companies in filing Form C
Common tax reliefs and deductions for companies
Other highlights
Workshops and seminars for companies 

Due date for filing of Form C

A company is required to file its Form C together with its financial accounts, tax computation and relevant supporting documents by 30 Nov of each year.  For example, in the year 2011, a company has to file the complete set of return for Year of Assessment 2011 (i.e. Form C,  financial accounts for the accounting year ending in 2010, tax computation and relevant supporting documents) by 30 Nov 2011.

Checklist to guide companies in filing Form C

The following checklist is to guide companies in filing of Form C:

1. Preparation of Accounts

2. Preparation of Tax Computation and Supporting Schedules

3. Completion of Form C and Appendices

 

Common tax reliefs and deductions for companies

1. Productivity and Innovation Credit (PIC) Scheme (Budget 2011) 

2. Corporate Income Tax Rebate and SME Cash Grant 

3. Tax Exemption Scheme for New Start-Up Companies 

4. Renovation and Refurbishment Costs - Tax deduction under Section 14Q 

5. Capital Allowance – Tax deduction under Section 19A(1) 

6. Loss Carry-Back Relief System 

7. Carry Forward of Unutilised Capital Allowances, Losses and/or Donations 

8. Training Costs (Net of Grant)

Many companies send staff for training courses to enhance their level of skills and productivity. To encourage Singaporeans to upgrade their skills so they can stay employed or seek re-employment, the Government also provides course fee subsidies to companies that send their workers for training.

Companies that incur costs for the training of staff in areas relevant to the business will be generally entitled to claim a deduction for such expenses incurred. If companies receive or obtain government grants that help to reduce their training costs, only the training costs net of grant (i.e. actual costs borne by companies), will be tax deductible.

For Year of Assessment (YA) 2011 to YA 2015, companies can claim 400% tax deduction on up to $400,000 of their qualifying training expenditure incurred per year instead of the 100% tax deduction under the existing tax rules. For more information, please refer to the Productivity and Innovation Credit.

A case study illustrating how companies can lower their tax burden by claiming the various tax concessions can be found here.

Other highlights

1. Exemption of Foreign Sourced Income 

2. Retrenchment costs incurred in the process of streamlining business operations and to improve company’s profitability are tax deductible.

3. Interest and other borrowing costs, which are incurred as substitute for interest expense or to reduce the interest costs, for the purpose of financing business operations are tax deductible.

4. Donations made to an approved Institution of a Public Character (IPC) or the Singapore Government that benefit the local community will qualify for double tax deduction.

Companies should note that for donations made to an approved IPC during 1 Jan 2009 to 31 Dec 2015, it will qualify for 2.5 times tax deduction.

5. View the mistakes commonly made by companies in their income tax filing and their tax computations.

 

Workshops and seminars for companies

Company representatives who are responsible for the preparation of Form C filing and other corporate tax matters are encouraged to sign up for a free one-day Corporate Tax Seminar conducted by IRAS.

Companies can find out about the seminar dates and registration details under the ‘News & Events’ > ‘Workshops & Seminars’ section of the IRAS website.