This article is contributed by the Inland Revenue Authority of Singapore (IRAS).
The Year of Assessment (YA) 2024 Corporate Income Tax (CIT) filing season is upon us, but don’t hit that snooze button just yet. Filing your company’s tax return this year comes with some exciting incentives that could significantly impact your bottom line. The Inland Revenue Authority of Singapore (IRAS) breaks down the key points you need to know.
File by 30 November
Filing your YA 2024 CIT Return (Form C-S/ Form C-S (Lite)/ Form C) on time is not just good practice – it is mandatory. You must file a tax return by 30 November 2024 even if your company had no business activities or incurred a loss in the Financial Year (FY) 2023.
Exception is given only to dormant companies that have obtained a waiver to file a return from IRAS. Remember, failure to file the tax return by the deadline is an offence under the Income Tax Act 1947, and you may be subject to penalties of up to $5,000.
In 2023, over 4,700 companies were prosecuted for late or non-filing of tax returns. The total penalties for late or non-filing of tax returns exceeded $4.9 million.
Enjoy a Lighter Tax Bill
Here’s the good news! To help companies manage rising costs, the Government will provide all taxpaying companies a CIT Rebate of 50% of their corporate tax payable for YA 2024, which is automatically computed and allowed in the tax assessment.
Additionally, if you employed at least one local employee in 2023 who is not a shareholder and director of the company (“local employee condition”), your company will receive a
$2,000 CIT Rebate Cash Grant. This means companies meeting the local employee condition will receive a minimum benefit of $2,000, even if they have no corporate tax payable.
The maximum combined benefit from the CIT Rebate and CIT Rebate Cash Grant is capped at $40,000 per company.
For more detailed information on the CIT Rebate and CIT Rebate Cash Grant, visit go.gov.sg/cit-taxexemption.
Tech to the Rescue: Seamless Filing
If your company is eligible to file Form C-S, Seamless Filing From Software (#SFFS) offers a more efficient approach to your tax filing.
This enhanced accounting software streamlines the tax filing process by automatically converting your company’s accounting data into tax data and allowing you to submit your Form C-S to IRAS directly from the software. With #SFFS, you can wrap up your tax filing in just 15 minutes while keeping up with the necessary record-keeping requirements.
To give businesses sufficient time to transition to and familiarise with #SFFS, IRAS has also extended the CIT filing deadline for #SFFS users by an extra 15 days (i.e. until 15 December) for YA 2024 and YA 2025
For more information on #SFFS, visit https://go.gov.sg/iras-sffs.
Take the ‘Lite’ Path to Compliance
Is your company’s revenue $200,000 or less? Does your company meet the qualifying conditions to file Form C-S? File Form C-S (Lite) if your answers to the above questions are “Yes!”.
Form C-S (Lite) is a simplified version of Form C-S, designed for companies with straightforward tax matters to fill in just 6 essential fields – that’s two-thirds fewer than Form C-S.
With the simplified Form C-S (Lite), eligible companies can streamline their tax filing process, allowing more time to focus on core business activities.
While financial statements and tax computations are not required for submission, you should still prepare and keep these documents as IRAS may request for these documents.
For more information on Form C-S (Lite), visit https://go.gov.sg/cslite.
IRAS Resources Available
As you prepare for your YA 2024 CIT filing, be sure to utilise the resources IRAS offers to support your company in fulfilling its tax obligations:
- Basic CIT Calculator: Work through your tax computations and check against common errors
- E-Learning Videos: Choose from a comprehensive list of CIT-related topics to refresh your knowledge at your own pace
- CIT Filing 2024: All you need to know about your company’s tax filing obligations
For further assistance, you can contact IRAS over live chat or call the helpline at 1800 356 8622.
