Small and medium-sized businesses can now submit returns to both IRAS and ACRA in one go using an upgraded accounting solution or use a streamlined income tax return — Form C-S (Lite)— to speed up tax filing.
Mr. Terry Tong, director of GTCL, a wellness and retail company, used to find tax filing difficult, but not anymore. Previously, he had to file a tax return, an annual return, and financial statements to the Inland Revenue Authority of Singapore (IRAS) and the Accounting and Corporate Regulatory Authority separately (ACRA).
Now, a new upgraded accounting solution developed in collaboration with IRAS, ACRA, and five software developers has not only shortened the filing procedure for business owners like Mr. Tong, but it has also automated the preparation of a tax computation, which supplies data for tax returns.
Mr. Tong may now file to both IRAS and ACRA in a single log-in session, thanks to the upgraded solution, only available through accounting software like Netiquette O2O Business Suite and SMECEN. Other accounting software, such as AutoCount Accounting, Deskera ERP, and Real-time Cloud Solutions, will gradually become available. Thanks to its integrated accounting functionalities, the software also serves as a critical record-keeping tool, storing all corporate transactions in one location.
Currently, the upgraded solution is designed for SMEs with annual revenues of less than S$5 million, and it is estimated to assist approximately 200,000 businesses.
“The solution helps to cut down on time spent on duplicate efforts in report preparation,” Mr. Tong explains. The convenience of being able to submit appropriate returns to both IRAS and ACRA utilizing one system eliminates the need to log in to two separate systems.”
According to IRAS and ACRA, the new accounting digital system is intended to reduce the time smaller businesses spend physically preparing and submitting returns from nine hours to 30 minutes.
Puzzle, a transportation company, has already used the upgraded accounting system to file its annual and tax returns and has found it simple to use.
According to Lee Tian Xiang, the firm’s director, the online solution was simple to use, with an easy-to-understand interface. “My company has also benefited from cost savings by completing the filings on our own,” he adds. Because the software generates the data automatically, it decreases human mistakes, giving me more confidence in the accuracy of my filings.”
Form C-S (Lite) is another digital project designed to simplify tax filing for small businesses. Companies with an annual income of S$200,000 or less that qualify to file Form C-S can now file Form C-S (Lite), which only requires the completion of six primary fields for companies with simple tax matters. The amount of fields necessary for Form C-S has been reduced by two-thirds.
Financial statements and tax computations are not required for SMEs filing Form C-S (Lite). On the other hand, SMEs must still prepare these documents for submission if and when IRAS requires them.
The streamlined tax filing processes made possible by the enhanced accounting solution and Form C-S (Lite) will make the transition to e-Filing a breeze for many SME owners, with the Dec 15 Corporate Income Tax Filing deadline fast approaching and e-Filing YA 2020 Corporate Income Tax Returns a must.
SMEs are encouraged to start implementing these new digital efforts. They may take advantage of three different support programs to help them pay for their onboarding processes for the improved accounting software. The e-filing deadline of November 30 will no longer be extended to December 15, beginning in YA 2021. This means that by November 30, 2021, all businesses must e-file their YA 2021 Corporate Income Tax Returns. Late filers may risk a fine of up to S$1,000, as well as a six-month jail sentence if they do not pay.
“IRAS is continually finding innovative methods to redefine the taxpaying experience,” says Ms Lim Siew Gim, director of IRAS’ corporate tax division — services branch, in light of these new digital initiatives and improvements. The new enhanced accounting solution, as well as Form C-S (Lite) as an additional e-Filing option for SMEs, demonstrate IRAS’ commitment to providing solutions and services that are tailored to the needs of our taxpayers.”
“These digital initiatives will assist businesses in increasing their production and efficiency.”
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