In Singapore, businesses must file their ECI (Estimated Chargeable Income) with IRAS (Inland Revenue Authority of Singapore) within 3 months of the end of their financial year. The ECI statement must accurately reflect the company's main source of income. However, certain companies can get waiver from ECI filing.
Upon submitting the ECI form, companies will receive a Notice of Assessment (NOA), indicating the amount of tax owed. This amount must be paid within one month from the date listed on the NOA. Starting in 2020, all companies are required to e-file their corporate tax returns as per government regulations, though they have the option to e-file or paper-file their ECI statement.
It is important for businesses to determine their ECI filing requirements and eligibility for ECI filing waiver.
Aura Partners Singapore offers comprehensive corporate tax services, including consultancy, ECI preparation, tax filing, and submission to IRAS, for both local and foreign companies in Singapore.
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Frequently Asked Questions About Corporate Tax
In Singapore, businesses benefit from a fixed corporate tax rate set at 17%. Moreover, the start-up tax exemption scheme offers newly established companies the opportunity to enjoy exemptions on their taxable profits during the initial three years of operation.
The final deadline for submitting Singapore corporate income tax is November 30th. Tax returns are based on the previous financial year, meaning you file for the previous fiscal year's end. For instance, the filing deadline for Singapore corporate income tax Form C/Cs, for the financial year ended 30.06.2023 (Year of Assessment 2024), is November 30, 2024. Yet, please be aware that submission deadlines could change as per IRAS regulations. Hence, consulting with your tax agent is advisable.
Capital gains in Singapore are tax-exempt.
Singapore companies benefit from zero dividend tax. After settling the corporate tax on your company’s profits, distributing post-tax profits to shareholders can be done without incurring any additional tax liabilities.
Singapore has introduced tax incentives for start-up private limited companies since 2005, aimed at nurturing entrepreneurship and fostering SME growth. Eligible newly incorporated companies, meeting specific criteria (including Singapore incorporation, tax residency, and having no more than 20 shareholders, with at least one individual shareholder owning a minimum of 10% of shares), will receive specific tax benefits under newly start up scheme:
- For each of its first three consecutive tax years - 75% exemption on the first $100,000 of normal chargeable income and further 50% exemption on the next $100,000 of normal chargeable income.
- From the fourth tax year onwards the first $10,000 of normal chargeable income will get 75% exemption and next $190,000 of normal chargeable income will get a further 50% exemption.
No. Under the current one-tier corporate tax system, the tax paid by a company on its chargeable income is the final tax. All dividends paid by a company are exempted from tax in the hands of the shareholders in Singapore.
Yes. Every Singapore company is required to file a tax return on an annual basis.