It is the time of the year when all companies are rushing to prepare the tax computation to submit the corporate tax return before the due date. And many companies are also clueless about the changes in the tax filing process.
We have prepared a summary to highlight the changes that have already been effective or will be in effect soon.
Did you know that, moving forward from YA 2020, all companies are required to e-file the corporate tax via the IRAS tax portal? To increase efficiency of the backend process in IRAS, compulsory e-filing of tax returns has already been rolled out in phases since YA 2018.
In the current YA 2019, companies who has more than $1 million in revenue have to submit the corporate tax via the IRAS tax portal. However, those companies which are eligible to submit the tax in paper form, are strongly encourage to e-file as well.
Corporate tax filing for all companies
Even though this is not something new, we would also like to highlight that companies are required to file their tax return even if there is no business transaction or is in a loss position for the financial year end. Non filing of the tax is an offence which may result in penalty.
Single filing deadline from YA 2021
As of now, companies can still benefit from the extended filing deadline till 15 Dec 2019 to file the tax. However, from YA 2021, IRAS will maintain a single filing due date. Therefore, all companies are required to submit the tax by 30 Nov and no further extended filing deadline will be available.
Improvement of Tax filing experience
- Previously, newly incorporated companies that end their financial year in the first year of incorporation had to request for a tax return with IRAS. After the improvement in the tax portal, companies can e-file the tax directly to IRAS without the need to request from IRAS.
- Companies which change their financial year end to be more than 12 months have to apportion the profit and loss to 2 different year of assessment. For example, a company changes its financial year end to 31 March 2018:
YA 2018 – 1 Jan 2017 to 31 Dec 2017
YA 2019 – 1 Jan 2018 to 31 March 2018
This would require the company to file the tax for 2 separate Year of Assessment. However, with the new enhancement, companies can file the tax directly to IRAS within 1 submission for YA 2019.
Digital Payment for Tax
In line with the smart nation drive for Singapore, cashless payments are gaining the traction. IRAS aim to be cheques free by 2025. Companies are encourage to adopt the digital payment modes such as GRIO and PayNow options to ease payment process.
Companies that fail to file the corporate tax on time without any reasonable excuse will face penalty up to $1,000 and in default of payment, imprisonment up to 6 months. IRAS will issue an estimated notice of assessment which have to be paid within 1 month.
If you are having difficulty in arriving your tax return, do give us a call or send in an enquiry for a quote. We will be happy to assist you in submitting the tax on time.
At Ace Success, we aim to be a one-stop service provider for all your corporate needs in Singapore. Our range of services include Company Incorporation in Singapore, Accounting, Annual Compliance, Corporate Secretary, Corporate Tax, Individual Income Tax, Business Solutions, Nominee Director, GST Registration, Auditing and Cloud Accounting.
We adopt a straightforward approach to cater to your business needs. We are dedicated to understanding your current back-end business process and strive towards achieving the best suited solutions. Get in touch with us to know more about our services.