Corporate Tax for a limited company is calculated on a preceding year basis. The accounting year for a twelve month period will be the basis year for the tax computation. The Year of Assessment (YA) is normally the next calender year. This gives rise to a lot of confusion for the layman.

In simple terms if your twelve month accounting year ended in June 2011, this will form the basis period for which the  Tax is raised. The assessment will be raised in the year 2012 hence the term YA 2012. Therefore YA 2012 assessment will refer to your company’s financial earnings in the year 2011. The Tax filing due date for your Form C for YA 2012 (in the above example) will be on or before 30th of November 2012.

It is mandatory for newly incorporated companies that have  income or profits derived from within Singapore or overseas to declare its income through an Income Tax Form for companies (Form C)  each financial year. The Tax Filing due date for filing the completed Form C – together with its accounts, tax computations and  other supporting records – is by the 30th of November each year.

To simplify the process of tax filing for small companies, the Inland Revenue Authority (IRAS) has introduced a new Form C-S effective for the Year of Assessment 2012. Small companies will have to satisfy certain conditions to enjoy the above. Small companies that meet the requirements need not submit their financial statements and tax computations together with the Form C-S. The Corporate Tax filing due date for the Form C-S is 30th November each year, however an extended due date is given for those companies that e-file. Those that do not meet any one of the requirements for the exemption will continue to file the traditional Form C.

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