COMPANY TAX & GST

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The tax team at DGH Consulting has the experience and skillset to handle the taxation needs of all our clients. We are ready and prepared to help with , Body Wax, and Haircut. Working with DGH Consulting, you can rest assured that your taxation matters will be handled with tact and careful consideration.

Our services include but not limited to:

  • Corporate tax advisory

  • Tax Planning

  • Preparation of tax computation & schedules

  • Submission of Form C & Appendices

  • Filing of ECI

  • GST application and filing

  • Personal Tax

  • Withholding Tax

COMPANIES TAX FILING OBLIGATION (Inland Revenue Authority Of Singapore)

Every company incorporation in Singapore is required to file:

  1.  Estimated Chargeable Income (ECI)

  2.  Annual Corporate Tax Return by using Form C-S/C*

 

(* The due date to e-file your Corporate Income Tax Return is 15 Dec 20XX. Companies may incur penalties and face enforcement actions for late or non-filing of their income tax returns.)

1. Estimated Chargeable Income (ECI)

All companies including new companies are required to file ECI within three months from the end of their financial year except for companies that qualify for waiver to file ECI and those that are specifically not required to file.

A waiver to file ECI is granted to a company that meets both of the following criteria:

  • Annual revenue does not exceed S$5 million

  • ECI is nil for the Assessment Year

Company will be issued a Notice of Assessment (NOA) after ECI was submitted to IRAS. Taxable amount must be paid in full within one month from the date of issue. Unless if giro has been set-up and installment is permitted (6 ~ 10 installments depending on filing date).

2. Annual Corporate Tax Return by using Form C-S/C

  • Qualifying to file Form C-S

From YA 2017, companies will qualify to file Form C-S if they meet all of the following conditions:

  1. The company must be incorporated in Singapore;

  2. The company must have an annual revenue of $5 million or below

  3. The company only derives income taxable at the prevailing corporate tax rate of 17%; and

  4. The company is not claiming any of the following in the YA:

    1. Carry-back of Current Year Capital Allowances/ Losses

    2. Group Relief

    3. Investment Allowance

    4. Foreign Tax Credit  and Tax Deducted at Source

  • Form C

If the company does not qualify to file Form C-S, you must file Form C.

To file Form C, you are required to submit your company's financial statements, tax computation and supporting schedules.

GOODS AND SERVICES TAX (GST) IN SINGAPORE

GST was introduced in 1994 to allow Singapore to shift its reliance from direct taxes to indirect taxes. Since 1 Jul 2007, the GST rate is 7%. Only GSTregistered businesses can charge GST.

 

GST is a broad-based consumption tax levied on nearly all supplies of goods and services in Singapore, as well as the importation of goods into Singapore. GST is paid whenever customers buy taxable goods or services from GST-registered businesses. The suppliers effectively act as GST collection agents.

COMPULSORY GST REGISTRATION OBLIGATION 

You must register for GST if:

1. Retrospective View

For periods on or after 1 Jan 2019, taxable turnover will be computed on a calendar year basis for the purpose of determining registration liability. You have to monitor at the end of every calendar year (i.e. 31 Dec) and register for GST if your annual taxable turnover exceeds S$1 million. 

2. Prospective View

You will have to register for GST when there is certainty that your taxable turnover will exceed S$1 million in the next 12 months. You must have supporting documents to support your forecast value of $1million. For example:

  • Signed contracts or agreements

  • Accepted quotations or confirmed purchase orders from customers

  • Invoices to customers with fixed monthly fee charged

  • Income statements showing that past 12-month period was already close to S$1 million and that annual turnover is on an increasing trend

On the other hand, you are not required to register for GST if there is no certainty in your forecast. For example, you made a forecast based on market assessment, business plans or sales targets.

VOLUNTARY GST REGISTRATION 

A business that is not required to register for GST may apply for registration on a voluntary basis if the business satisfies any of the following:

  1. Your business makes taxable supplies;

  2. Your business makes only out-of-scope supplies. Out-of-scope supplies mainly refer to sales of goods which did not enter Singapore and goods in transit; 

  3. Your business makes exempt supplies of financial services that are also international services; or

  4. Your business procures services from overseas service providers and you would not be entitled to full input tax credit even if you were GST-registered.

If you have not started but you have the intention to carry out any of the above transactions, you may also apply for GST registration. You will have to satisfy the Comptroller that you are operating or carrying on a business and have firm intentions to carry out the above transactions.

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