Tax filing in Singapore is the process of declaring one’s income and submitting one’s tax return to the Inland Revenue Authority of Singapore (IRAS). The due date for submitting individual and corporate tax return is 15 April (18 April for electronic submission) and 30 Nov (15 Dec for electronic submission) respectively. Prior to submitting the corporate tax return, companies are required to submit an Estimated Chargeable Income within 3 months from their financial year end.
Singapore Corporate Tax Rate is 17% (effectively it is lower when you take into consideration the full and partial exemption as well as the tax rebate). Individual Progressive Tax Rates range from 2% to 22% with the first $20,000 of the personal chargeable income tax free. There is also a special NOR scheme which individual may utilize for tax efficiency.
Tax returns, if not declared properly, may be a subject of tax audit or investigations which can ultimately lead to criminal offence. Businesses and individuals should always record their income and expenditure carefully with proper supporting documents. Business funds and personal funds should also be managed separately to avoid a situation where personal/private usage is recorded as business usage for tax filing.
Consequences of Incorrect Tax Filing
Whether it is an incorrect tax return filed intentionally or negligently, you may end up heavily penalized and/or in jail. Moreover, person who assists in the filing of incorrect return could be liable to the same level of punishment as the taxpayer who has evaded tax.
It is advisable for businesses to approach a tax practitioner to assist in the filing of a proper tax return to avoid the serious consequences of tax evasion or negligence.
Engage A Tax Advisor Pte Ltd
Unlike the ordinary tax filing performed by most firms, our tax filing focuses on “what if an IRAS investigation takes place” and ensure that the necessary queries which could possibly surface by IRAS during a tax audit or investigation are addressed at the beginning (i.e. at the point of preparation of income tax computation).
To find out more about tax filing and the services that we offer, please contact us for more information.