Tax Filing Rules Eased in Singapore
April 3, 2012 Taxation in Singapore
SINGAPORE – Small companies registered in Singapore will soon benefit from more relaxed filing requirements, as the national tax authority announces a new simplified tax return form and a removal of the requirement to report estimated chargeable incomes.
While speaking at the annual Budget Seminar hosted by the Tax Academy of Singapore on April 2nd, the commissioner of the Inland Revenue Authority of Singapore (IRAS) Moses Lee announced two major changes to the filing process for small business, aimed at simplifying compliance procedures and reducing compliance costs for businesses operating in Singapore.
According to the commissioner, starting from January 2013 all companies with an accounting year ending in October 2012 will no longer be required to report their Estimated Chargeable Income (ECI), which previously had to be filed within three months of the end of the calendar year. The filing exemption will apply only to businesses with turnovers below SGD 1 million per annum. The IRAS expects that the change will benefit approximately 67 000 companies registered in Singapore.
Additionally, the tax return form (Form C-S) filed by companies incorporated in Singapore which have annual turnovers below SGD 1 million will be simplified, and the length of the form will be reduced from the current seven pages to three pages only. The IRAS claims that the new form can be completed in just ten minutes. It is expected that the reduced requirement will directly lower the costs of accounting and taxation services for approximately 110 000 companies in Singapore.
Commenting on the changes announced in his speech, the commissioner said, “The IRAS firmly believes that the two initiatives announced today will result in a significant reduction in time and effort spent on tax filing for smaller companies, thereby helping to improve their productivity and leading to greater efficiency for the tax system as a whole. We will continue to seek innovative ways to help more companies minimise their compliance costs and enjoy a better overall filing experience.”
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