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.