Corporate Tax Services
What is Corporate Tax Filing?
Corporate Income Tax (CIT) in Singapore is a tax levied on the income earned by companies operating within the country. The standard corporate tax rate is 17%. There may be variations in the tax rates due to tax incentives.
Exemptions and incentives are available to reduce tax liability. Some of which include the Partial Tax Exemption and the Start-Up Tax Exemption for qualifying businesses.
Companies in Singapore must prepare and file their tax returns annually, ensuring compliance with the Inland Revenue Authority of Singapore (IRAS) regulations. As tax service experts, we help businesses understand and comply with corporate tax requirements. We aim to improve their tax position and ensure they follow all legal requirements.
Challenges of Filing Corporate Income Tax
Corporate income tax filing can be challenging for companies with complex transactions. New firms setting up presence in Singapore may be unfamiliar with certain tax regulations and practices. From taxability of income to deductibility of expense, specific tax concepts are applicable for each company. Such tax rules poses considerable challenges for those who are untrained in the field of taxation.
Tax regulations changes along with the general business environment. Have a good grasp of regulatory changes is a challenge, increasing the difficulty of corporate tax filing. One must consistently stay updated to keep up with regulatory changes from the tax authorities.
We list down some key challenges that business owners or tax professionals may face:
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Tax concepts: There may be a plethoral amount of tax concepts there may pose a challenge to business. This is especially true for foreign company setting up a presence in Singapore. Deduction of expenses, income taxability, capital allowances are common examples that may be challenging. For niche issues such as dual tax column, tax concession or foreign tax credits, it may require professional experience. These tax concepts may be highly complicated and without the necessary experience, it could be relatively challenging.
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Deadlines: Managing deadlines for ECI filing/CIT filing are challenging especially for serial entrepreneurs or tax professional overseeing multiple companies. There may also be complications for deadlines if the company you are managing have varying financial year-ends.
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Tax incentives, concessions and exemptions: Tax incentive are usually industry specific. The conditions for tax incentives may vary and may result in additional challenges. Having multiple tax column, classification of specifc expenses or restrictions on deductibility are good examples. These specific topics may be challenging.
Being tax compliance is a requirement for all business. At OakTree, we offer a comprehensive range of service to companies of all sizes. We assist client to prepare corporate tax computation and submission. Tax schedules and supporting documents are also documented to ensure accountability.
As your trusted tax partner, we ensure that your corporate tax filing experience is compliant, accurate and hassle-free.
How we can help you in your journey to ensure tax compliance?
On contrary, tax outsourcing is a highly cost-effective strategy for smaller companies. Outsourced Tax services for SME are increasingly popular due to many reasons. Expertise, cost and convenience are the three most common reasons why SMEs engage an external tax consultant.
A typical company’s tax return is has two distinct seasons. They are the filing of the estimated chargeable income (ECI) and the final tax submission. The ECI is due 3 months after financial year-end. The final (CIT) filing deadline falls on 30 November each year.
Not all companies are required to file ECI. Small or dormant companies that meet certain criteria may qualify for an ECI filing waiver. One important criteria is to have an estimated taxes of zero for a specific year of assessment (YA).
Considering the distinct tax seasons, it may be more effective to outsource tax duties to a professional firm compared to employing an in-house tax accountant. Smaller companies usually outsource most, if not all, of their tax function to an accounting and taxation firm.
Is Corporate Tax outsourcing only for big companies?
Tax Compliant
Reduce the risk of financial penalties for non-compliance. Accounting and taxation firms are usually managed by experience professionals. These tax specialists possess the necessary skills to ensure tax compliance.
Cost Effective
Most outsourcing tax firm are run by teams that are managed by experience partners. Having a team of tax experts serving and managing your tax responsibilities is certainly cost effective. For comparison, an in-house tax accountant may cost more with lesser opportunity to scale (expansion).
Peace of mind
Unsure about tax regulations? Worried about the accuracy of your tax computation? Know that your risks are well managed when you engage a professional and credible firm.
Is Corporate Tax outsourcing only for big companies?
Corporate Tax Services that we provide
We offer a comprehensive tax solutions for clients. From deadline monitoring to submission of tax return, we believe in having a complete solution for our clients.
Tax Compliance and filing
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Monitoring of statutory tax filing deadlines
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Preparation of Tax Computation and schedules
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Submission of Tax return and Filing of form C, C-S during ECI and CIT seasons
Corporate Tax Advisory (Specific Topic)
Looking for specific services relating to corporate tax? We offer niche service for areas that require attention. Our service includes the following, but is not limited:
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Review of Past Year corporate income tax returns
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Dual Tax Column Treatment
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Capital allowances
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Deductions (Deducting tax allowable expense)
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Foreign Tax Credit Analysis
Corporate Tax Planning and Analysis
Tax can be forward looking. By having a tax projection, a company will be able to have an estimate of its tax position for a particular project or decision. At OakTree, we assist company to have a clearer understanding of their tax projection. A detailed plan will offer foreseeability and insights to support business decisions.
We also offer tax planning services for companies with complex structure. Tax planning is also relevant for international firms looking to set up a presence in Singapore. We believe these services will help you in your business evaluation.
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Tax Planning and Analysis
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Tax incentives
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Tax Projection