Tax

Corporate Income Tax Forms that New Companies Must Submit to IRAS
All companies are required to submit the following forms to IRAS every year.

Form Due Date
Estimated Chargeable Income (ECI) Within 3 months after end of financial year, unless the company does not need to submit ECI
Form C-S/ C 30 Nov; or 15 Dec (e-File)
Filing of Estimated Chargeable Income (ECI)
New companies incorporated in 2015 will only receive the ECI notification from IRAS in the last month of their financial year, starting from the year after the year of incorporation. If your company is incorporated in 2015 and closes its first set of accounts in 2015, no ECI filing notification will be sent to you in 2015 as most companies do not close their first set of accounts in the year of incorporation. However, you are still required to file the ECI within three months from your company’s first financial year end, unless the company qualifies for the administrative concession and does not need to file the ECI.
Note:
As the company’s first set of accounts covers a period of more than 12 months from the date of incorporation, its profit/losses must be attributed and declared under two YAs as follows: YA 2016 covering the basis period from 15 Jul 2015 to 31 Dec 2015 ; and YA 2017 covering the basis period from 1 Jan 2016 to 31 Dec 2016. Time apportionment basis may be used if the company is not able to directly identify income and expenses to the two periods.
Companies That Do Not Need to Submit ECI

Companies that qualify for the administrative concession for a particular financial year do not need to file ECI for that relevant Year of Assessment (YA). The company will not need to file its ECI for the particular YA if its:
1. annual revenue is not more than $1 million for the financial year; and
2. ECI is NIL for the YA. The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies.
There is no need to inform IRAS if the company meets the conditions and does not need to file its ECI.

Corporate Tax Rates, Corporate Income Tax Rebates, Tax Exemption Schemes and SME Cash Grant

Corporate Tax Rates, Corporate Income Tax Rebate for YAs 2013 to 2017SME Cash Grant for YA 2012Corporate Income Tax Rebate and SME Cash Grant for YA 2011

The table below gives an overview of the Corporate Tax Rates, Corporate Income Tax Rebates, Tax Exemption Schemes and SME Cash Grant.

Year of Assessment (YA) Tax rate Tax exemption/ rebate
From 2010 17% Partial tax exemption and tax exemption scheme for new start-up companies Companies, will continue to enjoy the partial tax exemption and tax exemption for new start-up companies, as provided in the tables below.
Partial tax exemption for companies
Chargeable income % exempted from Tax Amount exempted from Tax
First $10,000 @75% =$7,500
Next $290,000 @50% =$145,000
Total $300,000   =$152,500
Tax exemption scheme for new start-up companies
Chargeable income % exempted from Tax Amount exempted from Tax
First $100,000 @100% =$100,000
Next $200,000 @50% =$100,000
Total $300,000   =$200,000
Corporate Tax Rates

With effect from Year of Assessment 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company.
Year of Assessment (YA) Tax Rate
From 2010 17%
2008 to 2009 18%
2005 to 2007 20%
Corporate Income Tax Rebate for YAs 2013 to 2017

Corporate Income Tax Rebate is given to all companies* to help them deal with rising business costs. The Minister for Finance has announced in Budget 2016 that to help businesses, especially SMEs, to restructure in the midst of the current economic climate, the Corporate Income Tax Rebate for YAs 2016 and 2017 will be raised to 50% of the corporate tax payable, up from the 30% announced in Budget 2015. The rebate will be subject to a cap of $20,000 per YA. For YA 2013 to YA 2015, all companies will be granted a 30% Corporate Income Tax Rebate capped at $30,000 per YA. The table below summarises the rates of the rebates and maximum rebates to be given.
Tax Deductions/ Allowances 400% tax deductions/ allowances on up to $400,000 of spending per year in each of the six qualifying activities. PIC+ Scheme From YAs 2015 to 2018, qualifying businesses can enjoy 400% tax deductions/allowances on up to $600,000 of qualifying expenditure per year in each of the six qualifying activities.
Cash Payout Option to convert up to $100,000 of total spending in all six activities for each YA into a non-taxable cash payout, in lieu of the tax deduction/allowance. For qualifying expenditure incurred from YA 2013 to 31 July 2016, the cash payout is 60%. For qualifying expenditure incurred on or after 1 August 2016 to YA 2018, the cash payout conversion rate will be at 40%. Revised!