As mentioned before in a Singapore company – Annual fillings, and as all business owners have already known how important annual filing requirements in Singapore might have to ensure a pro-business environment for its entrepreneurs and firms. Today we are going to share with you one of the mandatory annual filing requirements that is very much important as the ECI, filing form C-S or form C to IRAS. So what is a form C-S and why do we, business owners in Singapore, have to file it, let’s find out.
An overview of Form C/ C-S
A Form C-S, is usually known as a 3-page brief of your company’s Income Tax Returns report instead of 7 pages as Form C. Form C or Form C-S is simply an income declaration form for the year of assessment (YA), one of the annual filing requirements that must be submitted annually to the Inland Revenue Authority of Singapore (IRAS). Your company might have a profitable year or made a loss, however, there is still a requirement to complete Form C/C-S.
For more details, a form C/C-S includes some important information for IRAS which have an insight view of how all the companies are working, in order to offer supportive policies for companies. Such as:
- A declaration statement of the company’s eligibility
- Information on tax adjustments
- Information from the financial accounts
Although there are a few similar point between Form C and Form C-S, here are some differences between those two forms:
The company must meet all the four criteria in order to file Form C-S:
- The company is incorporated in Singapore
- The company has an annual revenue of 5 million SGD or less (from YA 2017 onwards)
- The company derives only income taxable at the prevailing corporate tax rate;
- The company does not claim carry back relief, group relief, investment allowance, research and development tax allowance, foreign tax credit and tax deducted at source.
The company is also not required to submit financial statements, tax computation and supporting schedules with the Form C-S unless requested by IRAS.
Regarding to Form C:
If your company does not qualify to file Form C-S, you must submit Form C. Together with form C, you must file the company’s financial statements, tax computation, and supporting schedules.
There are still some questions about filing Form C/C-S which entrepreneurs would like to know. Firstly, as same as other filing requirements, there are 2 ways to file Form C/C-S with e-File on 15th December or paper File on 30th November annually.
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/C-S) will be made compulsory in a phased approach from Years of Assessment (YAs) 2018 to 2020 as follows:
As an easy and convenient way to file your company’s requirements, e-Filing itself has some benefits that business owners should know clearly.
- Comparing to paper-filing, e-filing having its due date half a month later than hard-file one;
- Auto-computation system of certain fields will minimize the filing errors;
- Granted companies to save draft if your company is not yet ready for submitting;
- Receive step-by-step guidance from iHelp;
- Instant computation of estimated tax payable;
- Instant acknowledgement upon successful e-Filing.
Usually, 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. If your company is new, IRAS will provide your company with New Company Start-Up Kit, which is an interactive e-learning guide, not only to learn about these Forms but also very necessary stuffs your company have to accomplish especially corporate tax filing obligations. This Kit will also provide you with the information you need for your first tax filing process – from incorporation to the filing of the first Corporate Tax Return.
Notes that companies have to submit additional documents required for Form C. Some of these relevant documents are tax computation including details of any asset acquisitions or disposals, and financial statements also (prepared by the Singapore Financial Reporting Standards and Singapore Companies Act, Chapter 50).
Signing on Form C/C-S can belong to any person authorized by the company. However, the director or principal officer of the company is still responsible for the company’s tax affairs.
The penalty for late submission Form C/C-S
Late submission of form C/C-S can be a costly mistake that companies have to be concerned. Many companies have been through this mistake over the years. If your company is in this position, IRAS would likely send you a Notice of Assessment (NOA) based on the ECI submission earlier by the company. It’s IRAS to forecast your company’s tax that you must pay although the tax is not accurate so if there is any disagreement, you should inform IRAS by filing a Notice of Objection within two months. There are also fines for either late submission or late payment. Furthermore, if the company fails to submit every filing requirements above, your company might have received a court summons and the penalty might be as much as twice the required amount of tax.
Business owners can seek for assistance to file annual requirements on IRAS guiding website for more details or you can contact ACE Global Accountant for experienced tax professional support in order to ensure your company tax filing to be done accurately and also in compliance to local laws.