Preparing and filing tax returns (Form P1) is essential for clubs and associations in Singapore. 

HOW TO FILE A TAX RETURN (FORM P1) IN SINGAPORE

It is essential for organisations to complete tax returns timely.  

Before the deadline of April 15 of each year, the president, honorary treasurer, secretary, and all other members of the management committee and council must turn in their original audited statement of accounts and Income Tax Return (Form P1).

1. Income Tax Return Form P1
2. Original audited/certified statement of account

There won’t be any reminders sent to the groups of people; it is the Management Committees/Councils’ responsibility to file the income tax returns on time.

Singapore Incorporated Pte Ltd can refer to Singapore corporation tax for tax filing requirements. 

Form P1 should be submitted to the following:

The Comptroller of Income Tax

Compliance and Small Volume Taxes Branch

55 Newton Road, Revenue House

Singapore 307987 

Alternatively, the applicant can upload a copy of the documents to https://go.gov.sg/formp1ya2023upload or file the tax returns online at https://go.gov.sg/formp1ya2023 (corppass authentication is required).

By the 15th of March of each year, the club or associations should receive a physical copy of Form P1. 

Relin Consultants assists with Form P1 filing for clubs and associations.

If you have not received it, you can either call the Comptroller of Income Tax at +65 6351 3352/3511/3883 or download a soft copy1 of Form P1.

Make sure to fill out, print, and send the signed copy to the Income Tax Comptroller.

WAIVER FOR FORM P1 SUBMISSION

Clubs/Associations may submit an application for a waiver from submitting Form P1 if they meet the requirements below:

• Has been dormant for at least three years and won’t start up again for the next two.
• Hasn’t received any investment income and never will.
• Doesn’t intend to cancel its registration with the Registrar of Societies.

Clubs/Associations are exempted from the administrative requirement to file ECI.

WHAT ARE UNUTILIZED ITEMS?

If the organisation is presumed to have engaged in business during a specific Year of Assessment (YA) in Singapore, it’s possible that they have capital allowances, tax deductions, or contributions that it was unable to completely utilise as there wasn’t enough income to balance them. 

No capital allowances will be permitted in a given YA if the entity is not considered to be trading. Any surplus of costs over income (losses) resulting from that YA would likewise not be taken into account.

• Unutilised capital allowances for a specific YA are those that cannot be fully utilised because of insufficient income or business losses sustained during that YA.
• Unused trade losses for a given YA occur when a group of people fails or cannot offset business losses experienced during that YA with money from other sources.
• When the income for a certain YA is higher than the authorised donations made during the YA, there are unutilized donations for that YA.

The organisation with unused items (donations, trading losses, and capital allowances) may:

• Carry forward its current year’s unused capital allowances and trading losses to offset income from the immediately prior YA, or 
• Carry forward its unused capital allowances, trade losses, and donations to pay off the income of future YAs.

The club/association can use the basic tax calculator to calculate your taxes, fill out Form P1, and determine how much-unused capital allowances, trade losses, and gifts they can carry forward to subsequent tax years or carry back to the one before that.

CARRY-FORWARD OF UNUTILISED ITEMS

Unused donations can be carried forward for up to 5 Years of Assessment (YAs); for example, donations made in YA 2016 can be carried forward until YA 2021, provided the necessary conditions are met. 

Unused capital allowances and trade losses can be carried forward indefinitely. Donation balances that are not used by YA 2021 are disregarded.

LOSS CARRY-BACK RELIEF

Clubs, trade groups, management corporations, and town councils are all eligible to carry back unused capital allowances (CAs) and trade losses to lower their overall tax obligations for a predetermined time period.

What Is Loss-carry Back Relief?

A one-year carryback of current year unutilized CAs and trade losses were established starting in YA 2006 to help small enterprises manage cash flow issues, especially in cyclical downturns.

Loss-carry back relief allows the applicant to do the following:

• Unused current-year CAs and trade losses are permitted to be carried back for 1 or 3 YAs (for YA 2020 and YA 2021 enhanced carry-back relief) immediately preceding that YA in which the CAs are granted or the trade losses are incurred (together referred to as “Qualifying Deductions” or “QD”).
• There is a $100,000 cap on the amount of current-year QD that can be carried back.
• When these sums are carried back, the present guidelines for carrying forward QD will still be in effect (i.e., carry on the same trade or business).
• The carry-back will be given on due claim.
• The following steps must be taken in order to carry back the QD under the enhanced carry-back relief

YA 2020

First, to the third YA that comes before YA 2020 (i.e. YA 2017).

Secondly, where there is QD left over after (i), the remaining amount will be carried back to the second YA that comes before YA 2020. (i.e. YA 2018).

Lastly, if any QD remains after (ii) above, the remaining shall be carried back to the YA that comes before YA 2020. (i.e. YA 2019).

YA 2021

First, to the third YA that comes before YA 2021 (i.e. YA 2018).

Secondly, where there is QD left over after, I the remaining amount will be carried back to the second YA that comes right before YA 2021. (i.e. YA 2019).

Lastly, any QD that remains after (ii) above will be carried back to the YA that comes right before YA 2021. (i.e. YA 2020).

If certain requirements are met, any excess QD that is not carried back may be carried forward for deduction against the body of persons’ future taxable income.

YA 2022

For YA 2022, the improved carry-back relief is not applicable. The QD may only be passed back to the YA that comes right after it (YA2021).

If certain requirements are met, any excess QD that was not carried back may be carried forward for use as a deduction against the body of persons’  future taxable income.

Changing address or office bearer

The office bearers or any other member of the Management Committee/Council may update any changes to the address or important officer bearers (i.e., the president, treasurer, and secretary) on Form P1 or by writing to CA@iras.gov.sg.

CONSEQUENCES FOR LATE OR NON-FILING OF TAX RETURNS

It is illegal to submit Form P1 and original, audited or certified statement of accounts after the deadline has passed.

If the applicant doesn’t submit by the deadline, IRAS may take the following enforcement steps against him:

• Send out an estimated Notice of Assessment. The projected tax is due within one month.
• Offer to commit additional offences.
• Summon the club, association, or individuals in charge of overseeing the club, or association, to court.

Estimated Notice of Assessment

Predicted Assessment Notification

Based on the revenue from prior years for the club or association or any other information IRAS may have, IRAS may send an estimated Notice of Assessment. While estimating any increase in income, IRAS may make assumptions.

If an estimated Notice of Assessment is given to the applicant, he must:

• Within one month of the Notice of Assessment’s date, pay the estimated tax.

Even if he plans to challenge the assessment or is awaiting the result of the appeal, he is still required to pay the estimated tax. Late payment will result in fees.

• If the applicant objects to the projected tax assessment, he must put it in writing.

Within two months of the Notice of Assessment’s date, he must submit an objection to the assessment.

He must include the Form P1 and the Original Audited/Certified Statement of Accounts with the objection filing. Otherwise, no changes will be made to the projected evaluation.

The objection to the projected tax assessment will be examined if all the required paperwork is received, and any extra tax that was paid will be reimbursed.

Offer of composition

By paying a composition amount to IRAS, the applicant could be able to avoid prosecution rather than taking enforcement action.

Depending on the clubs’ or association’s historical compliance records, a composition amount of no more than $5,000 may be offered. The organisation or organisation will receive notified of the composition amount through email. To avoid prosecution, they must pay the composition sum and submit the past-due tax return and related paperwork by the deadline.

Paying the composition amount

When paying the composition amount using the preferred payment methods, refer to the payment slip number.

Payment using GIRO is not allowed.

The processing of the payment will take three business days.

If, after paying the composition amount, the applicant does not file the unfiled tax return, legal action may still be conducted against their club/association. All overdue taxes will be resolved with the payment made.

Appealing for waiver of composition amount

Email appeals should be sent to enfmisctax@iras.gov.sg. Appeals will only be taken into account if the applicant has filed tax returns on time for the past two years, and they have turned in any unfiled tax returns or papers by the deadline specified in the offer of composition.

Court summons

IRAS may issue a summons to the club/association to appear in court on a particular date if it does not receive:

• the necessary tax return by the deadline
• the composition amount being paid by the deadline

The applicant must do all of the following steps at least one week prior to the court date if they choose not to appear in court:

• Submit the pending tax return and/or paperwork.
• Make the composition payment.

The club or association’s representative must appear in court on the scheduled day with a letter of authorization to appeal for postponement if they need additional time to file and/or pay the composition amount.

If the club or association does not appear in court, additional legal proceedings will be taken against them (e.g., a warrant for the club president’s arrest may be issued).

If found guilty in court, the club or association could be subject to a $5,000 maximum penalty.

They must still submit the unfiled tax returns and/or paperwork. If not, additional legal action might be taken.

Failure to file your tax returns for 2 or more years

The applicant could receive a summons to court if they don’t file the tax returns for two years or more. If found guilty in court, they can be required to pay:

• Two times the amount of the tax levied in penalties, 
• as well as a maximum fine of $5,000.

Contact us at Relin Consultants for more information or assistance with Form P1 Filing.