What are the tax filing seasons in Singapore

Author: T. K.

In Singapore, the tax filing season typically refers to the period when individuals and businesses are required to file their income tax returns. The Inland Revenue Authority of Singapore (IRAS) manages the tax filing process.

For Individuals

  • Tax Residency and Rates:

    • Tax Residents: Individuals are considered tax residents if they are a Singaporean citizen or permanent resident residing in Singapore except for temporary absences; or a foreigner who has stayed/worked in Singapore for 183 days or more in the tax year. Tax residents are taxed on a progressive scale from 0% to 22% (as of my last update in January 2022).

    • Non-Residents: Non-residents are taxed at a flat rate of 15% or the resident rates, whichever results in a higher tax amount. Certain types of income, like income from short-term employment (60 days or less), may be exempt from tax.

  • Income Types:

    • Taxable income includes earnings from employment, rental income, investment income, and other sources.

    • Singapore does not tax capital gains or inheritances.

  • Deductions and Reliefs:

    • Tax residents can claim various deductions and reliefs, which can significantly reduce the taxable income. These include earned income relief, spouse relief, child relief, parent relief, and others.

  • Filing Process:

    • Most taxpayers use e-Filing through the myTax Portal, which is efficient and convenient.

    • The Inland Revenue Authority of Singapore (IRAS) sometimes sends a No-Filing Service (NFS) notification to certain taxpayers, indicating that they do not need to file a tax return unless their circumstances have changed.

For Companies

  • Corporate Tax Rate:

    • The corporate income tax rate is 17% on chargeable income.

    • Singapore follows a territorial basis of taxation, where foreign-sourced income is taxed only when it is remitted into Singapore, with certain exemptions.

  • Filing Requirements:

    • Estimated Chargeable Income (ECI): Companies must submit their ECI within three months after the end of their financial year. However, companies with annual revenue of SGD 5 million or less for the financial year and ECI of nil for the Year of Assessment (YA) are not required to submit ECI.

    • Form C-S/ C: Companies must file their income tax returns either on Form C-S or Form C. Form C-S is a simplified version for smaller companies.

  • Tax Incentives:

    • Singapore offers various tax incentives for businesses, including the Partial Tax Exemption and the Start-Up Tax Exemption schemes, which can significantly reduce the effective tax rate for qualifying companies, especially in their initial years of operation.

  • Goods and Services Tax (GST):

    • Companies with an annual turnover of more than SGD 1 million must register for GST, which is similar to Value-Added Tax (VAT) in many other countries. The standard GST rate is 7% (as of my last update).

Keeping Updated

Tax laws and regulations can change, and it's crucial for individuals and businesses to stay informed about the latest developments. The IRAS website is a comprehensive resource for up-to-date information on tax matters in Singapore. For specific or complex situations, consulting a tax professional is advisable.