Single Filing Deadline from 2021 and Digital Solutions to Make Tax Filing Seamless and Convenient
The Inland Revenue Authority of Singapore (IRAS) reminds all companies, including those with no business activities or those in a loss position, to e-File their Year of Assessment (YA) 2019 Corporate Income Tax returns (Form C-S/ C) by 15 Dec 2019, or by 30 Nov 19 if they paper file.
Compulsory e-Filing of Corporate Income Tax returns started in YA 2018 with a phased implementation, outlined as follows:
|Compulsory e-Filing for|
|From YA 2018 onwards||Companies with revenue more than $10 million in YA 2017|
|From YA 2019 onwards||Companies with revenue more than $1 million in YA 2018|
|From YA 2020 onwards||All companies|
Nine out of 10 companies who were required to e-File their YA 2018 Corporate Income Tax returns had done so. For those companies that were not in the compulsory e-Filing group, seven out of 10 of them had chosen to start their e-Filing journey early and e-Filed their YA 2018 Form C-S/ C.
This year, an additional 40,000 companies are joining the compulsory e-Filing group. IRAS would like to remind these companies, which are companies with revenue more than $1 million in YA 2018, to e-File early and avoid the last-minute rush.
While companies with revenue below $1 million can still paper-file this year, they are strongly encouraged to start e-Filing now. By YA 2020, all companies will be required to e-File their Corporate Income Tax returns and paper filing of Corporate Income Tax returns will no longer be accepted from next year.
Single Filing Deadline from 2021
The extended filing deadline of 15 Dec, which was initially introduced in 2012 as an incentive to encourage companies to e-File their Corporate Income Tax returns, will no longer be available in 2021. This means that all companies will be required to e-File their YA 2021 Corporate Income Tax returns by 30 Nov 2021. IRAS will remind companies of this filing due date nearer to 2021.
Digital Solutions to Make Tax Filing Seamless and Convenient
a. Enhancements in myTax Portal to Improve Filing Experience
- Newly-incorporated companies that commenced business and closed their financial accounts in the first year of incorporation can now e-File their returns directly via the “File Form C-S/ C” e-Service at mytax.iras.gov.sg. Previously, such companies would have to request for a tax return from IRAS. Following an enhancement to our system, new companies can now e-File their YA 2019 tax returns directly via the “File Form C-S/ C” e-Service at mytax.iras.gov.sg without the need to approach IRAS.
- Companies which change their financial year end may have basis periods straddling across two YAs. Such companies will have to apportion and attribute the adjusted profit/ losses to two different YAs. For example, a company changed its financial year end from 31 Dec 2017 to 31 Mar 2018. Its YAs and corresponding basis period will be as follows:
|2018||1 Jan 2017 – 31 Dec 2017 (12 months)|
|2019||1 Jan 2018 to 31 Mar 2018 (3 months)|
Previously, such companies would need to separately submit to IRAS the YA 2018 tax computation when filing the current YA 2019 tax return. With the new enhancement, companies can now complete the fields required for the two YAs (i.e. for YA 2018 and YA 2019) at one go using the YA 2019 e-Filing service.
b. Enhanced Accounting Software for Seamless Filing – available from mid-2020New
IRAS and the Accounting and Corporate Regulatory Authority (ACRA) are working with five accounting software developers to co-create a digital solution that will allow companies to use their accounting software to generate Corporate Income Tax return (Form C-S), ACRA’s annual return and financial statements in XBRL format, for direct submission to both agencies. Companies will benefit from the enhanced accounting software as the statutory submission process will be streamlined, doing away with the need to manually key in their declarations at the respective agencies’ existing e-Services. Companies can also adopt the accounting software as their primary record-keeping tool. The new digital solution will be launched from mid-2020 and will be available to companies with simple business transactions for a start.
Refer to Annex A for the list of software developers that IRAS and ACRA are working with.
Go for Digital Payment Modes
With cashless payments gaining momentum and the Smart Nation drive for Singapore to be a cheque-free society by 2025, IRAS would like to encourage companies to adopt digital payment modes such as GIRO and Fund Transfer for tax payments. More details on e-payment can be found on https://www.iras.gov.sg/IRASHome/Quick-Links/Payments/Businesses/
File On-Time to Avoid Penalties for Late Filing
While most companies file and pay their taxes on time, IRAS will not hesitate to take enforcement actions on companies that are not compliant. Companies that fail to file their Corporate Income Tax returns on time or fail to e-File when required to, without reasonable excuse, are guilty of an offence and may face a fine of up to $1,000 and in default of payment, imprisonment for a term of up to six months.
Companies that do not file their Corporate Income Tax returns on time may receive a Notice of Assessment (NOA) based on IRAS’ estimation of their income. Tax must be paid within one month from the date of the NOA notwithstanding any objections. IRAS will review the estimated assessment upon receiving the Corporate Income Tax returns.
Companies that fail to file their Corporate Income Tax returns for a particular YA or fail to e-File when required to, for two years or more, may face a penalty of double the tax assessed and a fine of up to $1,000. In default of payment, an imprisonment term of up to six months may be imposed.
We offer professional corporate taxation services for businesses in Singapore. We are committed to helping your organization to meet the tax compliance obligations by:
- Help client ensure tax returns are filed promptly
- All tax deadlines duly complied
- Identify tax incentives, grants and policies to new start-up SMEs, maximise tax benefits allowed by the government