Filling taxes: Overview of Form C-S/ C

All Singapore companies need to report their income to IRAS annually if they carried on a trade or business in Singapore. Form C-S/ C is considered as a method of filling their Income Tax Return. For businesses do not understand about Form C-S/ C may read the article here.

Compulsory e-Filing for Form C-S/ C

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:

The phased implementation will provide more time for smaller companies to modify their processes and ease into e-Filing

Benefits of e-Filing

  • 15 – day extension still 15 December to e-File
  • Auto-computation of certain fields to minimize filling errors
  • Save draft until you are ready to submit
  • Instant computation of estimated tax payable
  • Instant acknowledgement upon successful e-filling

Filing Due Dates

The annual filing due dates for Form C-S/ C is:

Form C-S/ C

The Income Tax Return has two types including 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. In case companies are making losses, they are still required to file the Form C-S/C.

Simplified Tax Filling with Form C-S

From Year of Assessment (YA) 2012, to simplify the filling procedure for small companies, Form C-S – an Income Tax Return form is introduced by IRAS with shortened to three pages for qualifying small companies.

Fewer Fields

Previously, small companies had to file Form C which has twice as many fields. Form C-S comprises:

  1. A declaration statement of the company’s eligibility;
  2. Information on tax adjustments; and
  3. Information from the financial accounts.

No need to submit documents unless requested

Beside fewer fields to fill, qualifying small companies are also not required to submit financial statements and tax computation because the Form C-S has to declared essential tax information and financial information.

Nevertheless, companies should prepare these financial statements and tax computation and submit them to IRAS if requested.

Qualifying to file Form C-S

From YA 2017, IRAS will increase the annual revenue threshold for filing Form C-S from the current $1 million to $5 million to reduce compliance cost on businesses. All other conditions will remain unchanged.

From YA 2017, companies will qualify to file Form C-S if meeting all of conditions as below:

  1. The company must be incorporated in Singapore;
  2. The company must have an annual revenue of $5 million or below
  3. The company only derives income taxable at the prevailing corporate tax rate of 17%3; and
  4. The company is not claiming any of the following in the YA:
    1. Carry-back of Current Year Capital Allowances/ Losses
    2. Group Relief
    3. Investment Allowance
    4. Foreign Tax Credit and Tax Deducted at Source

Form C

With not qualifying companies to file the Form C-S, they must file the Form C

To file the Form C, the companies need to submit their companies’ financial statements, tax computation and supporting schedules

Click here to find out how to e-File Form C: Tips on e-Filing Form C

Getting the Form C-S/ C

IRAS will send companies either a Form C-S or Form C e-Filling 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 filling)/ 15 Dec (for e-Filling) in the year of following the financial year.

Signing Form C-S/ C

The director of principal officer of the company is responsible for the company’s tax affairs. However, any person authorized by the company can sign the Form C-S/ C.

Failure to File Form C-S/ C

If the company does not file its Form C-S/ C by the due date, they will receive Notice of Assessment (NOA) from IRAS 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 from the date of the NOA. 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

Businesses would like to register a company in Singapore, contact us for a quote 

Source: Inland Revenue Authority of Singapore

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