Introduction to Form C/C-S
Form C and Form C-S are the 2 types of Corporate Income Tax Returns. A company would only need to submit and file either 1 of the 2, not both.
The Form C-S/ C is a declaration form for companies to declare their actual income. Companies must ensure that the form is correctly completed and gives a full and true account of the company’s income.
Companies are still required to file the Form C-S/ C even if they are making losses.
From Year of Assessment (YA) 2012, IRAS introduced Form C-S – an Income Tax Return form shortened to three pages for qualifying small companies to report their income to IRAS. Form C-S simplifies the filing procedure for small companies.
As compared to Form C, Form C-S has half the number of fields and it comprises of:
- A declaration statement of the company’s eligibility;
- Information on tax adjustments; and
- Information from the financial accounts.
No Need to Submit Documents unless Requested
Aside from having fewer fields to fill, qualifying small companies are also not required to submit financial statements and tax computation because essential tax information and financial information would have to be declared in the Form C-S.
However, companies should still prepare these financial statements and tax computation and submit them to IRAS for verification upon request.
Eligibility of Form C/C-S
From YA 2017, companies will qualify to file Form C-S if they meet all of the following conditions:
- The company must be incorporated in Singapore;
- The company must have an annual revenue of $5 million or below
- The company only derives income taxable at the prevailing corporate tax rate of 17%; and
- The company is not claiming any of the following in the YA:
- Carry-back of Current Year Capital Allowances/ Losses
- Group Relief
- Investment Allowance
- Foreign Tax Credit and Tax Deducted at Source
If any of the above are not met, the Company must file using Form C instead.
Companies are required to submit their company’s financial statements, tax computation and supporting schedules together with Form C.
Failure to File Form C/C-S
If the company does not file its Form C-S/ C by the due date, IRAS may issue a Notice of Assessment (NOA) based on an estimation of the company’s income.
If the company wishes to dispute with IRAS’ estimated assessment, the company may inform IRAS by filing a Notice of Objection within two months. Even if the company objects to the estimated assessment, tax on this assessment must still be paid within one month from the date of the NOA.