Corporate Income Tax Forms that New Companies Must Submit to IRAS

 All companies are required to submit the following forms to IRAS every year:

 Form  Due Date
Estimated Chargeable Income (ECI)Within 3 months after end of financial year, unless the company does not need to submit ECI 
Form C-S/ C30 Nov; or 15 Dec (e-File)

 

Filing of Estimated Chargeable Income (ECI)

New companies incorporated in 2015 will only receive the ECI notification from IRAS in the last month of their financial year, starting from the year after the year of incorporation.

If your company is incorporated in 2015 and closes its first set of accounts in 2015, no ECI filing notification will be sent to you in 2015 as most companies do not close their first set of accounts in the year of incorporation. However, you are still required to file the ECI within three months from your company's first financial year end, unless the company qualifies for the administrative concession and does not need to file the ECI.

A new company is required to inform IRAS if its financial year end is not 31 Dec. For details, please refer to Updating Company Particulars.

Example

First financial periodECI notificationFile ECI forFile first ECI by 

YA 2016

YA 2017

 

15 Jul 2015 to 31 Dec 2015

No notification is sent in 2015

Tick

 

31 Mar 2016

 

15 Jul 2015 to 31 Dec 2016 (See note below)

Notification sent in Dec 2016

Tick

Tick

31 Mar 2017

 

Note :

As the company's first set of accounts covers a period of more than 12 months from the date of incorporation, its profit/losses must be attributed and declared under two YAs as follows:

  • YA 2016 covering the basis period from 15 Jul 2015 to 31 Dec 2015; and
  • YA 2017 covering the basis period from 1 Jan 2016 to 31 Dec 2016.

Time apportionment basis may be used if the company is not able to directly identify income and expenses to the two periods.

Find out more about Basis Period and Year of Assessment.

 

Companies That Do Not Need to Submit ECI

Revised!To reduce the compliance cost on businesses, IRAS will improve the tax-filing process for companies by increasing the annual revenue threshold for ECI waiver from the current $1 million to $5 million. Your company does not need to file its ECI for the particular YA if it meets the following criteria:

Company's Financial Year endCriteria for ECI waiver 
In or before Jun 2017 
  1. annual revenue is not more than $1 million for the financial year; and
  2. ECI* is NIL for the YA.
In or after Jul 2017 
  1. annual revenue is not more than $5 million for the financial year; and
  2. ECI* is NIL for the YA.

* The ECI should be the amount before deducting the exempt amount under the partial tax exemption or the tax exemption scheme for new start-up companies.

There is no need to inform IRAS if the company meets the conditions and does not need to file its ECI.

For details, please refer to the FAQs section of Companies That Do Not Need to Submit Estimated Chargeable Income (ECI).

 

Filing of Form C-S/ C

New Companies Filing Income Tax_2016

Getting the Form C-S/ C

New companies will start to receive the Form C-S/ C e-Filing notification letter only two years after their year of incorporation, as most do not close their first set of financial statements in the year of incorporation. For example, a company incorporated in 2016 will receive its first e-Filing notification letter for YA 2018 in May 2018.

If your company closed its first set of financial statements in the year of incorporation and has commenced business or was in receipt of any income, please request an income tax return filing notification letter from IRAS by May of the year following the year of incorporation, by submitting this form “ Request for Income Tax Return (Form C-S/ C) and Notification of New Financial Year End to IRAS by post or email.

Find out whether you qualify to file the simplified Form C (Form C-S) here

If your company was incorporated in 2016 and closed its first set of financial statements on or before 31 Dec 2016, you are required to request a Form C-S/ C filing notification letter for the Year of Assessment 2017 from IRAS by May 2017.

e-Filing of Form C-S/ C

To e-File the Form C-S/ C at mytax.iras.gov.sg, please ensure that you have authorised yourself, your staff or a 3rd party (e.g., your tax agent) via the e-Services Authorisation system ( EASY). Please have the following information on hand

  • Company's tax reference number (e.g. 200912345N, T12AA3456X, A1234567)
  • Company's e-Services Access Code*
  • Personal tax reference number (e.g. S1234567Z, G1234567Z)
  • SingPass or IRAS PIN

* If your company does not have an Access Code, you should obtain one by completing the Application for e-Services Access Code (65.5KB). The Access Code will be mailed to your company's registered address in IRAS' record within 4 working days.

For companies whose first set of accounts covers a period of more than 12 months from the date of incorporation, please refer to the section below on Attribution of Profits/ Losses for New Companies for more information. 

Attribution of Profits/ Losses for New Companies

Some new companies operate more than 12 months before closing their first set of accounts. When this happens, the first set of accounts covers more than 12 months.

Generally, the basis period cannot exceed 12 months, so the profits or losses must be apportioned and attributed to two different YAs.

The company should directly identify the income earned and expenses incurred for each of the two YAs, based on the actual dates the income was earned and the expenses were incurred. If this cannot be done, time apportionment basis can be applied (i.e. apportion based on number of days in the corresponding YAs).

Example

Date of Incorporation  15 Apr 2014
Financial Year End 30 Jun every year 
Accounts Closed On  30 Jun 2015 
Revenue $120,000 
Expenses  $60,000 
1st YA  2015 
Basis Period for 1st YA  15 Apr 2014 - 30 Jun 2014 
Revenue for 1st YA ($120,000 / 442 days) * 77 days
Expenses for 1st YA ($60,000 / 442 days) * 77 days
2nd YA 2016 
Basis Period for 2nd YA  1 Jul 2014 - 30 Jun 2015
Revenue for 2nd YA  ($120,000 / 442 days) * 365 days 
Expenses for 2nd YA  ($60,000 / 442 days) * 365 days

 

Expenses Incurred before Commencement of Business

Generally, expenses incurred before a business starts its operations are not tax-deductible as these are incurred for the purpose of setting up the operations and not 'wholly and exclusively' for the production of income.

To assist business in enterprise development, revenue expenses incurred one year prior to the deemed date of commencement of business will be deductible for tax purposes.

For more details on the deductibility of expenses incurred before commencement of business and how to determine the actual date of commencement of business, please refer to the Tax Treatment of Business Expenses.

Corporate Tax Seminars

Company representatives who are responsible for the preparation and filing of the Income Tax Return (Form C-S/ C) and other corporate tax matters are encouraged to sign up for a free one-day Corporate Tax Seminar conducted by IRAS from Jun to Nov each year.

  • What is my company’s tax reference number for filing Form C-S/ C?

    Your company's tax reference number may fall within either of following categories below:

     Local Companies with UEN (yyyynnnnnX format) E.g. 200312345A
     Foreign Companies with UEN (TyyPQnnnnX format)  E.g. T08FC1234A
     Others without UEN  E.g. A2500123J

     

    Please use the correct tax reference number to file your Form C-S/ C.

  • What financial year end should I set for my new company?

    The company can decide on a financial year end that best suits its business operation. This is a business decision and IRAS does not determine the financial year end for companies.

    If the company's financial year end is not 31 Dec, please notify us by:

    - Updating the company's financial year end via the “Corporate Profile/ Contacts & Alerts” e-Service at mytax.iras.gov.sg; or

    - Submitting the “Request for Income Tax Return (Form C-S/ C) and Notification of New Financial Year End” form to IRAS by post or email (ctmail@iras.gov.sg).

  • My company did not file the YA 2016 ECI as it qualifies for the administrative concession on waiver to file ECI. Is my company still required to file the Form C-S/ C for YA 2016 even though it had qualified for the waiver to file the YA 2016 ECI?

    Yes, the company is still required to file the Form C-S/ C for YA 2016 even though the company may be in a loss position, has no chargeable income or had qualified for the waiver to file the YA 2016 ECI.

     

  • My company has already filed the Estimated Chargeable Income (ECI) for YA 2016 to IRAS. Is my company still required to file the Form C-S/ C for YA 2016 by the filing due date of 30 Nov 2016?

    Your company is still required to file the YA 2016 Form C-S/ C to IRAS by the filing due date of 30 Nov 2016 or 15 Dec 2016 if e-filing, notwithstanding that it had earlier submitted the YA 2016 ECI to IRAS as the ECI submitted is an estimate.

    All companies need to submit two corporate income tax forms to IRAS every year:

    - ECI Form - reporting the company's estimated income within three months from the company's financial year end (except for (a) Companies that fulfil the conditions under the Administrative Concession; and (b) Certain entities that are not required to file ECI); an

    - Corporate Income Tax Return (known as Form C-S or Form C) - reporting the company's actual income, by 30 Nov of each year (except for dormant companies for which IRAS has waived the required to file a return).

  • My company has filed the Annual Return with ACRA. Does it still need to file the Form C-S/ C to IRAS?

    Yes, the company is still required to submit the Form C-S/ C to IRAS by the filing due date unless the company has been granted waiver to submit the corporate income tax return. 

    If the company is submitting the Form C to IRAS, please note that it does not need to submit the financial statements to IRAS if the company has filed a full set of financial statements with ACRA in XBRL format.

     

  • As a new company, I do not know how to compute my taxes. What should I do?

    You may refer to our Basic Corporate Tax Calculator to assist you in preparing your tax computation and supporting schedules when filing your tax returns.

  • Does my company qualify for the tax exemption scheme for new start-up companies?

    Eligible companies that satisfy the following three conditions will enjoy the tax exemption scheme for the first three consecutive YAs:

    - Incorporated in Singapore;

    - Tax resident in Singapore for that YA; and

    - Must not have more than 20 shareholders throughout the basis period for that YA, where all of the shareholders are individuals “beneficially and directly” holding the shares in their own names or at least one shareholder is an individual “beneficially and directly” holding at least 10% of the issued ordinary shares of the company. 

    For more information on determining the first YA of a qualifying company, please refer to the Tax Exemption Scheme for New Start-Up Companies.

  • Should I file my company’s income tax return using Form C-S or Form C?

    Form C-S is a simplified three-page income tax return form for companies to report their income to IRAS. Companies filing Form C-S do not need to submit their financial statements and tax computation to IRAS but should still prepare them for submission to IRAS upon request.

    As announced by the 2nd Minister for Finance on 7 Mar 2017, to reduce the compliance cost on businesses, IRAS will increase the annual revenue threshold for filing Form C-S from the current $1 million to $5 million. This change will take effect from YA 2017. All other conditions will remain unchanged.

    The revised Form C-S eligibility criteria are as follows:

    Company: Does not claim any of the following: 

    - Is incorporated in Singapore

    - Carry-back of Current Year Capital Allowances/ Losses

      - Has an annual revenue of $5 million or below

        - Group Relief

          - Derives only income taxable at 17% (i.e. company not enjoying tax incentives)

            - Investment Allowance

               

              - Foreign Tax Credit and Tax Deducted at Source

                If your company does not meet the Form C-S qualifying conditions, please submit the Form C together with the financial statements, tax computation and supporting schedules to IRAS.

                For more information, please refer to Overview of Form C-S/ C.

                 

              • What are the documents that must be prepared and filed together with the Form C-S/ C?

                Please refer to Documents to Prepare when Filing Form C-S/ C for the types of documents that companies must prepare and/or file with IRAS.

              • Do I need to engage a tax agent or consultant to prepare and submit my company’s income tax return (Form C-S/ C) to IRAS?

                It is a business decision whether you choose to engage professional help for your company's tax matters. Before deciding what works best for your company, you may wish to find out about the fees charged by the tax professional and their expertise in relation to the services that you need.

                For a better understanding of your company's tax filing obligations and to assist you in the submission of the Form C-S/ C to IRAS, you may also refer to our various service channels:

                - View our e-Learning Programmes for Corporate Tax.

                - Refer to Guidance on Completing Form C-S/ C and Additional Tips on Filing Form C-S/ C for step-by-step guides on filing of Form C-S/ C. 

                - Register for a free one-day Corporate Tax Seminar conducted by IRAS. The seminar dates and registration details are available at IRAS website.

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