If you have already decided to outsource your bookkeeping and accounting; you may want to consider our Corporate Tax Services as well. Here at Margin Wheeler, we not only assist companies and businesses in their tax filing but are also a one-stop solution provider which includes offering various Corporate Solutions and Accounting Services.
All companies need to file for corporate income tax in Singapore; some of our clients have preferred to outsource Corporate Tax Services as they have found that it is more convenient and cost efficient to get a specialist to handle taxes for their company.
Let us assist you in your Annual Tax Filing for your businesses.
Corporate Tax Services from $200/year
What is corporate tax and how does it affect your business?
Just as individuals have to pay income tax, companies have to pay corporate tax on an annual basis as well. The corporate tax is computed based on the income from the company’s preceding financial year.
Eg. income earned in the financial year (a.k.a basis period) of 2014 will be taxed in 2015 (YA – year of assessment)
In general, the basis period is a 12-month period preceding the YA—this is because different companies may have differing financial year ends.
View the illustration below to see an example of the basis period and YA based on different year endings.
|Financial Year End||Basis Period||YA|
|31 Mar of each year||1 Apr 2014 – 31 Mar 2015||2016|
|30 Jun of each year||1 Jul 2014 to 30 Jun 2015||2016|
|31 Dec of each year||1 Jan 2015 – 31 Dec 2015||2016|
Whether your company has been only recently established or has been operating for a couple of years, it will still have to adhere to these corporate tax standards.
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Special Note – Tax Rate and Tax Exemptions
Effective from YA 2010, a flat tax rate of 17% on a company chargeable income will be applicable for both local and foreign company.
What a company can look out for to save on costs, are tax exemptions.
Some companies may be eligible to enjoy exemptions as there are:
- Tax Exemption Scheme for New Start-Up Companies
- Partial Tax Exemption for all companies
- Corporate Income Tax Rebate
- Tax Benefits for New Businesses
New companies enjoy tax benefits as start-ups are usually given tax exemptions during their first 3 years.
Hence, you should consider maximising your tax exemptions by:
- Strategizing your operations method to see which is the best way for your company to reduce costs and maximise efficiency
- Claim fiscal depreciation during the 3-year tax exemption
However, there is a certain set of criteria that need to be met to enjoy the exemptions.
The company in question must be:
- A private limited company registered in Singapore
- In that Year of Assessment, the company is considered as a Singapore tax resident
- Has less than 20 individual shareholders; at least one shareholders must hold a minimum of 10% of the issued ordinary shares.
Hence, if you do decide to outsource your corporate taxes to us, we will be able to ensure you maximise the benefits your business is entitled to enjoy.
For more information about Corporate Income Tax, you can refer to IRAS – Overview of Corporate Income Tax.
Tax Forms for Annual Corporate Tax Filing
Tax forms are what you need to fill up and submit, a process similar to that of income tax. The following are 2 tax forms that are compulsory for all companies to submit annually:
- Estimated Chargeable Income (ECI) form
- Corporate Income Tax Returns commonly known as Form C-S or Form C
IRAS requires all Singapore companies to submit two corporate income tax forms every year; and this process might be tedious and time consuming for companies that do not have sufficient manpower and resources to allocate this task to.
It is of utmost importance when it comes to filing tax returns at the end of the year. Outsourcing your Accounting Services which can include Corporate Tax Services guarantees that you will never miss the strict deadlines.