Compulsory e-Filing for Form C-S/ C
New!As announced in Budget 2016, in line with Government's direction for more cost effective delivery of public services and the Smart Nation vision to harness technology to enhance productivity, e-Filing of Corporate Income Tax returns (including ECI, Form C-S and Form C) will be made compulsory in a phased approach from Years of Assessment (YAs) 2018 to 2020 as follows:
| YA|| Target Group|
| 2018|| Companies with turnover more than $10 million in YA 2017|
| 2019|| Companies with turnover more than $1 million in YA 2018|
| 2020|| All companies|
The phased implementation will provide more time for smaller companies to modify their processes and ease into e-Filing.
Form C-S/ C
There are two types of Income Tax Return, Form C-S and Form C.
The Form C-S/ C is a declaration form for companies to declare their actual income. Companies must ensure that the form is correctly completed and gives a full and true account of the company's income.
Companies are still required to file the Form C-S/ C even if they are making losses.
The infographic below provides a summary of which Form companies need to file, the documents to submit with Form C-S/ C and the benefits of e-filing.
Simplified Tax Filing with Form C-S
From Year of Assessment (YA) 2012, to simplify the filing procedure for small companies, IRAS introduced Form C-S - an Income Tax Return form shortened to three pages for qualifying small companies to report their income to IRAS.
Previously, small companies had to file Form C which has twice as many fields. Form C-S comprises:
- A declaration statement of the company's eligibility;
- Information on tax adjustments; and
- Information from the financial accounts.
No Need to Submit Documents unless Requested
Aside from having fewer fields to fill, qualifying small companies are also not required to submit financial statements and tax computation because essential tax information and financial information would have to be declared in the Form C-S.
However, companies should prepare these financial statements and tax computation and submit them to IRAS upon request.
Qualifying to File Form C-S
To qualify, companies must meet all of the following conditions for the YA:
- The company must be incorporated in Singapore;
- The company must have an annual revenue* of $1 million or below
- The company only derives income taxable at the prevailing corporate tax rate of 17%; and
- The company is not claiming any of the following in the YA:
- Carry-back of Current Year Capital Allowances/ Losses
- Group Relief
- Investment Allowance
- Research & Development Tax Allowance
- Foreign Tax Credit and Tax Deducted at Source
Use the Form C-S Eligibility Checklist (18KB) to check whether your company should file Form C-S or Form C.
Companies that do not meet the Form C-S qualifying conditions have to submit Form C together with financial statements, tax computation and supporting schedules.
Getting the Form C-S/ C
IRAS will send companies either a Form C-S or Form C e-Filing notification letter by May of each year, starting from the second year following the year of incorporation. Companies are required to file their Income Tax Return by 30 Nov (for paper filing)/ 15 Dec (for e-Filing) in the year following the financial year.
For information on filing of ECI by new companies, please refer to the Basic Guide for New Companies.
Signing Form C-S/ C
Any person authorised by the company can sign the Form C-S/ C. However, the director or principal officer of the company is still responsible for the company's tax affairs.
Failure to File Form C-S/ C
If the company does not file its Form C-S/ C by the due date, IRAS may issue a Notice of Assessment (NOA) based on an estimation of the company's income. If the company does not agree with IRAS' estimated assessment, please inform IRAS by filing a Notice of Objection within two months. Even if the company objects to the estimated assessment, tax on this assessment must still be paid within one month from the date of the NOA.
To find out more, please refer to Objecting to NOA.
Dormant Companies or Companies Closing Down
If your company is dormant or has ceased business operations, please refer to the details below on what you have to do: