What is Year Of Assessment (YA) In Singapore

What Does The ‘Year Of Assessment’ Mean?

The year of assessment refers to the fiscal year in which your income tax is calculated and assessed. The assessment is based on revenue received in the previous calendar year.

WHAT ABOUT THE YEAR OF ASSESSMENT IN SINGAPORE?

You can pick any fiscal year closing period to determine the company’s fiscal year, and most companies choose December 31 as their closing date. However, you can choose any date as your company’s financial year-end. 

The Inland Revenue Authority of Singapore’s (IRAS) website will be updated immediately through the Accounting and Corporate Regulatory Authority (ACRA) system to ensure that IRAS is notified of the company’s tax returns in a timely way for the fiscal year in which it is situated.

Do note that if the company’s fiscal year lasts longer than 12 months, it must be pointed out at the time of income tax filing and taxed as two years.

For example, a company’s financial year in Singapore is from January 1, 2023, to December 31, 2023. Based on the above, the company year of assessment will be YA2023. 

TYPES OF TAX RETURNS IN SINGAPORE

Estimated Chargeable Income (ECI) and Form C/C-S/C-S Lite are Singapore’s most common types of tax returns. 

Estimated Chargeable Income (ECI)

Estimated Chargeable Income (ECI) estimates your company’s income that will be taxed after all allowable expenses have been deducted. In addition to ECI, your organization must report its revenue.

However, if your company fits the following criteria, it may be excluded from submitting ECI with IRAS: – 

1. 1. The revenue in the fiscal year is no more than 5 million.
   2. The ECI is zero in the assessment year.

You do not need to notify IRAS about your company not filing for ECI, as it meets the requirements.

Form C/C-S/C-S Lite

Form C/C-S/C-S Lite is a statement of your company’s actual income. Compared to the ECI report, it gives a substantially more detailed picture of your company’s finances. After a fiscal year closes, you will have at least 11 months to prepare and file this Form with IRAS.

Form C-S

Form C-S is a simpler version of Form C, as it has twice as fewer fields to fill in. Form C-S assists smaller companies in Singapore to streamline their corporate tax filings.

Your company is eligible for Form C-S when it meets the following conditions.

• • It is established in Singapore.
  • Its revenue for the fiscal year is not more than S$5 million.
  • A corporate tax of 17% is levied on all sources of income.

In the year of assessment, the company did not claim any of the following:

• Allowance for investment
• Group relief
• Foreign tax credit and source tax deduction

Form C-S Lite

To further reduce the burden of corporate tax filing in Singapore for small businesses, the government launched Form C-S Lite in 2020. Presently, it is the most leisurely Singapore tax return as it only has six primary fields.

When the following conditions are satisfied, your company may be entitled to file Form C-S Lite. 

• • Your company meets all of the Form C-S requirements.
  • Its annual revenue is less than $200,000.

Form C

If your company is not eligible for Form C-S or Form C-S Lite, it must submit Form C for its Singapore tax return.

In addition to this Form, you must provide audited or unaudited financial statements, tax computation, and other supporting schedules.

WHAT ARE THE CORPORATE TAX FILING DEADLINES IN SINGAPORE?

The deadlines for the Singapore tax returns can be seen below.  

ECI : 3 months after a financial year-end

Form C/C-S/C-S Lite: November 30 in the assessment year

All Singapore-incorporated companies must now e-file Singapore annual tax returns with IRAS. 

Below are some examples of corporate tax filing timelines.

Example 1:

Your company’s financial year-end is December 31, 2022. The financial year in which the income is generated is from January 1, 2022, to December 31, 2022.

Example 2:
Your company’s financial year-end is June 30, 2022. The financial year where the income is generated is July 1, 2021 – June 30, 2022.

HOW DO I FILE YA TAX RETURNS IN SINGAPORE?

To file corporate taxes in Singapore, log in to MyTax Portal using your company’s CorpPass. You may perform the filing yourself or delegate it to any individual or tax agent who has access to your company’s CorpPass accounts. They can use the accounts to log in to the portal and e-file your company’s Singapore tax returns.

The following is a general procedure for filing Singapore tax returns:

1. 1. Read the IRAS instructions for filing ECI or Form C-S/C.
   2. Log in to MyTax Portal using the company’s CorpPass account, then confirm through SMS (or OneKey Token).
   3. Click on “Corporate Tax” in the menu bar and select “File ECI” or “File Form C-S/C,” depending on your purpose.
   4. Begin the filing process by the IRAS guidelines.

If you require further assistance filing tax returns in Singapore, contact us at enquiry@relinconsultants.com.

WHAT TO EXPECT AFTER THE CORPORATE TAX FILING IN SINGAPORE?

IRAS will issue you Notices of Assessment by May 31 following year after assessing your company’s tax returns. This is the deadline for companies that have simple business operations. You will have one month from the Notices date to pay the corporate tax.

If there is a significant disparity between the taxable income reported on Form C-S/C and the income reported on ECI, IRAS may require an explanation from you.

Depending on IRAS’s judgment, late company tax filing in Singapore may result in fines or summons of directors for tax obligations.