Don’t get confused and know the difference between Form C-S and Form C in Singapore tax return

According to the Income Tax Act of Singapore, all companies conducting their trade or business in Singapore or receiving foreign money in their Singapore bank accounts are eligible to file their tax returns. There are two types of tax returns in Singapore, C-S, and C, and most of the company owners get confused between these two, especially the newly formed business companies. Most of the time, they aren’t sure that these two types of taxes are applied according to the size of the companies, and the tax conditions and required documents are also not the same at all. Such complex tax matters can lead to more confusion and eventually, it will affect your business handlings, so it would be better to consult with corporate tax services in Singapore and get all the required information.

Form C-S and Form C

All the companies in Singapore declare their annual incomes through Form C-S and Form C. Before submission, the company must ensure that they have filled in all the information correctly. Even if the company is suffering from substantial losses, they have to submit any one of these two forms to proceed for the next steps.

Form C-S

The revenue company of Singapore has introduced the Form C-S in 2012 to streamline the tax filing process for the small or newly established business entities.

Form C-S includes,

• Declare company’s eligibility
• Flawless information about tax adjustments
• Company’s financial information

The small companies eligible to state all their tax filing through Form C-S don’t have to submit any other documents unless specified by the tax authorities. Apart from that, the small business entities don’t have to submit their financial statements and tax calculations as all the basic information has already been declared in Form C-S.

Conditions

To submit Form C-S, your company will need to match up the following requirements:

• It must be an incorporate company in Singapore
• The annual income of the company should be S$ 5 million or less
• The taxable income must be calculated at the current corporate tax rate, which is fixed at 17%
• The company must not apply for the following policies,

1. Not carrying capital relief or loss
2. The collective tax deduction system
3. Has legal investment allowance
4. Foreign tax credits

Form C

According to the Tax rules of Singapore, those companies aren’t eligible or to submit Form C-S, must declare their annual tax through Form C. When you will submit the Form C, you will have to submit several other documents, like financial statements, tax calculations, and other documents to support your tax declarations.

If you make any mistakes or fail to submit the required form within the deadline, the revenue department will issue a legal notice. So, if you don’t want it to be that confusing, hire accounting and tax services in Singapore as they have been dealing with such issues since the beginning.