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Singaporean Corporate Tax Returns Soon Due

Friday, November 16, 2018

The Inland Revenue Authority of Singapore has issued a reminder to companies that the corporate income tax return filing deadline is either November 30, 2018, for paper returns, or December 15, 2018, for electronically filed returns.

Newly from this year, returns must be filed electronically by companies with revenues of more than SGD10m (USD7.25m) in the 2017 year of assessment. An estimated 220,000 companies must set up a CorpPass account to file through the myTax portal. In its November 7, 2018, reminder, IRAS said only 70 percent of firms have done so.

E-filing of tax returns will be compulsory in 2019 for companies with revenue exceeding SGD1m in YA 2018 and in 2020 for all companies.

From next year, IRAS intends to pre-fill information concerning available capital allowances, unutilized losses, unutilized donations, current year approved donations, and unutilized investment allowances that can be brought forward (only for Form C).

Companies that are incorporated in Singapore and whose revenue does not exceed SGD5m can file simplified form C-S, rather than form C. Companies that qualify for Form C-S do not need to submit their financial statements, tax computations, and supporting schedules.

IRAS noted that, for YA 2018, companies can automatically enjoy a 200 percent tax deduction on the first SGD100,000 of qualifying expenses for the following four activities:

  • Overseas business development trips and missions;
  • Overseas investment study trips and missions;
  • Participation in overseas trade fairs; and
  • Participation in approved local trade fairs.

Tax deductions for such expenses are capped at two employees per trip/mission/fair. Examples of qualifying expenditure include airfare, accommodation and meals, insurance, and freighting of exhibits/stands.

Companies that incur expenditure exceeding SGD100,000 on the above qualifying four activities, or expenditure on other activities, can claim double tax deductions subject to approval by Enterprise Singapore or Singapore Tourism Board, it said.

Further, companies that have conducted Research and Development activities can claim R&D benefits on qualifying R&D expenditure incurred. For YA 2018, these benefits include enhanced tax deductions of up to 400 percent of the qualifying costs incurred subject to a cap of SGD400,000; or an option to convert up to SGD100,000 of qualifying R&D costs into a PIC cash payout at prescribed rates.