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Simplifying
Tax Filing for Taxpayers, Facilitating a Pro-Business Environment & Raising
Productivity
Committed to fostering a competitive tax environment that encourages
enterprise and supports economic growth, the Inland Revenue Authority of Singapore
(IRAS) regularly reviews its rules and procedures to reduce compliance costs
for all taxpayers, taking into account feedback and suggestions from various taxpayer groups, business associations and
trade industries to make tax-filing easier and faster.
IRAS has recently
announced two new initiatives that will simplify income tax filing for small
companies with an annual turnover not exceeding $1 million. These initiatives
will help qualifying companies reduce their compliance costs and improve their
overall productivity and efficiency.
The first initiative ---
Waiver of ECI Filing for Small Companies
with NIL Estimated Chargeable Income (ECI). Currently, all companies have to file an estimate of their chargeable
income (nil or otherwise) within 3 months after the end of their accounting
period.
Soon, small companies
will not be required to file their ECI if it is estimated to be nil. In other
words, they save one step in their overall filing process and can channel their
time and efforts towards preparing for annual income tax reporting. This change will take effect from Year of
Assessment 2013 for companies with accounting year ending October 2012 or
after.
The second
initiative is the Simplified Income Tax
Return, Form C-S, for smaller companies. Currently,
all companies report their income using Form C, a 7-page Income Tax Return. They
also have to send in their financial accounts and tax computations.
Smaller companies,
especially those that do not engage tax agents, may find it time-consuming to
complete Form C. These smaller companies tend to have less complex
transactions, fewer tax claims and fewer tax adjustments compared to larger
companies. From this year, the Year of
Assessment 2012, small companies with an annual turnover not exceeding S$ 1
million will find tax filing much faster and easier with the new Form C-S!
These smaller
companies need only provide the following information in the 3-page Form C-S:
A
declaration statement that the company is eligible for Form C-S filing;
- Information on tax
adjustments; and
- Information from the
financial accounts
Furthermore, small
companies do not need to submit their financial statements and tax computations
with Form C-S. Nevertheless, they should maintain proper and complete records
of business transactions and submit them if requested by IRAS.
Last but not least, to
provide companies with greater convenience, electronic filing of Form C-S will
be available at myTax Portal (https://mytax.iras.gov.sg) from July 2012.
Small companies will
have the option to either e-File or paper-file Form C-S. Companies who opt for
paper filing should file by 30 November 2012. Those who e-File will enjoy a 15-day
extension to 15 December 2012 and will see an instant acknowledgement upon
successful e-Filing of Form C-S!
Click here, to find out more
about the two initiatives! |
