Corporate Tax Filing Season 2017- Filing the right way from the start

23 Oct 2017

  • All companies must e-File Corporate Income Tax Returns for Year of Assessment 2017 (YA 2017) by 15 Dec 2017
  • Getting it right from the start by submitting correct forms and avoiding common mistakes
  • Nearly $97 million recovered through compliance review programmes in FY16

Corporate Tax Filing Season 2017 - All companies, including those that had not carried out any business activities in the financial year or are in a loss position[1], must e-File their Corporate Income Tax Returns for YA 17 by 15 Dec 2017, or 30 Nov 2017 if they paper file.


Getting it Right from the Start

Submit Complete and Accurate Tax Returns

All companies must file complete and accurate tax returns.

There are two types of Corporate Income Tax Returns, Form C and Form C-S (simplified Form C, a shortened, three-page form). Companies that qualify to file Form C-S need not submit their financial statements and tax computations[2]. To reduce businesses’ compliance costs, from YA 2017, the annual revenue threshold to qualify for filing Form C-S has been raised from $1 million to $5 million.

 Form C-S vs Form C


Logging in to myTax Portal

For this Corporate Tax Filing Season (YA 2017), companies should continue to log in to myTax Portal with SingPass/IRAS PIN to e-File. IRAS will be adopting CorpPass[3] as the login method for businesses accessing all IRAS e-Services (including Corporate Tax filing) from Jun 2018. Transition information packages will be sent out to businesses by Mar 2018.

 

Avoiding Common Mistakes

IRAS conducts regular compliance programmes with a focus on taxpayers who pose higher risks of non-compliance. In FY2016, IRAS recovered nearly $97 million in tax and penalties from our compliance review programmes on companies.

IRAS would like to highlight some common mistakes companies should look out for when filing their tax returns. A recently concluded compliance programme on the construction industry also reflected that some construction companies applied incorrect income recognition methods for projects, which had the effect of delaying the reporting of taxable profits to a later Year of Assessment (YA). IRAS continues to work with the Singapore Contractors Association Ltd to conduct seminars and highlight the tax compliance findings to their members.

Refer to Annex A for common mistakes companies should avoid.



Severe Penalties for Failure to File and Submitting Incorrect Returns

Companies that fail to file their tax returns for a particular YA for two years or more may face a penalty of double the tax assessed and a fine of up to $1,000. In default of payment, imprisonment for a term of up to six months may be imposed.

As for companies that submit incorrect returns, they can be convicted and may face a penalty of up to 200 per cent of the amount of tax undercharged. A fine of up to $5,000 or imprisonment for up to three years may also be imposed.

 

Getting Assistance

Multiple channels of assistance are available, including a dedicated Corporate Tax Filing Season 2017 webpage (www.iras.gov.sg/irashome/CorporateTax2017/) that provides essential information on companies’ tax filing obligation and useful filing tips, and corporate tax filing seminars.

Companies can also make use of the Basic Tax Calculator or third party solutions[4] to help them with their tax computations when filing their tax returns.

 

Disclosure or Reporting of Errors

Companies that have made errors in their past tax returns are encouraged to come forward to correct their errors as soon as possible. IRAS is prepared to accord a zero or reduced penalty treatment for voluntary disclosures which meet the qualifying conditions under the Voluntary Disclosure Programme.

 

Inland Revenue Authority of Singapore



ANNEX A

Common Mistakes Infographic



[1] Excludes dormant companies that have been granted waiver of Income Tax Return submission.

[2] These documents are to be submitted only upon IRAS’ request.

[3] CorpPass is a corporate digital identity for businesses and other entities (such as non-profit organisations and associations) to transact with Government agencies online.

[4] An example is TinkerTax, a third-party web application platform which enables companies to convert their financial accounts into a tax computation. TinkerTax was developed by one of the winning teams at a hackathon organised by IRAS in September 2016.