Simplified tax filing in Singapore

13.06.2013

Inland Revenue Authority of Singapore (IRAS) presented simplified tax filing (Form C-S) for small and medium companies.

Now, according to the legislation, every Singapore`s company have to prepare tax report about their income, during three months before accountant's year expires. Report should be prepared in approved tax filing, Form C.

In distinction from Form C, Form C-S reduced just to three pages. Also, when you file Form C-S, there is no requirement for the application of financial accounts, tax assessment forms and supporting statements. This documentation should be prepared, but is available only in exceptional cases, by the request of the Department of tax revenue of the country.

Form C-S is available for companies incorporated in Singapore, which annual income doesn`t exceed one million Singapore dollars, and the income is taxed at a 17% rates. However, to satisfy conditions for using Form C-S, company shouldn`t claim for tax relief and does not use foreign tax credit, and does not request transfer to the previous years of capital deductions and losses.

According to authorities, innovation will benefit about 67 000 companies (42% of the total registered in Singapore companies). We should remind you, that Form C-S became available for the first time for the reporting year 2012.

Based on:

http://www.iras.gov.sg/

Expert’s opinion

For a long time Singapore has attracted the attention of businessmen from all over the world. They are not afraid of distance, pricing and the time difference, because of the attractive economic and political stability, which explains a lot.

It’s not easy to open an account in Singapore banks for non-resident company, however, there are more and businessmen, who want to conduct their business in Singapore.

Remarkably, that the government is not afraid to make moves towards business. The Form C-S adds pluses to Singapore as a financial center. Moreover, with proper building business schemes and with effective work with the company, you can significantly reduce your taxes

Irina Lomakina ( Director of Moscow office of “Honest&Bright” Company)