AGENDA - Inland Revenue Authority of Singapore · 2015-11-02 · AGENDA A. Basis of Assessment...

C ’ T Obli tiCompany’s Tax Obligations for Year of Assessment 2015for Year of Assessment 2015

Presentation by Inland Revenue Authority of SingaporeFor Corporate Seminars held in Nov 2015

© 2015 Inland Revenue Authority of Singapore. All Rights Reserved. 1

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AGENDAAGENDA

Basic Corporate Tax RulesBasic Corporate Tax Rules

Corporate Tax Obligationsp g

Others


AGENDA

A. Basis of Assessment

Basic Basic C tC t

B. Taxable Income

C. Deductions against Income

D Capital Allowances (CA)Corporate Corporate Tax RulesTax Rules

D. Capital Allowances (CA)

E. Productivity and Innovation Credit (PIC)

F Unutilised Losses/ CA/ Approved DonationsTax RulesTax Rules F. Unutilised Losses/ CA/ Approved Donations

G. Tax Schemes to Lower Tax Payable


AGENDA

A. Tax Filing Obligations

Corporate Corporate TT

B. How to Pay Your TaxC. How to Object to Your Tax Assessment

D. What to Do If You Discover Errors in Your TaxTax Tax

ObligationsObligations

D. What to Do If You Discover Errors in Your Tax Declaration : IRAS’ Voluntary Disclosure Programme

E. Record-Keeping RequirementsF Keeping Company’s Particulars Up To Dategg F. Keeping Company s Particulars Up-To-Date


AGENDAAGENDA

A. Budget 2015 Highlights

OthersOthers B. Wage Credit Scheme

C Q & AC. Q & A


After this seminar, you will:

Have a basic knowledge of corporate taxation

Understand your annual tax filing obligationsUnderstand your annual tax filing obligations including the filing due dates

Be able to prepare a tax computation and e-File your Form C-S/ Cy /

Be ready to use the whole range of e-Services at y gmytax.iras.gov.sg


Basic Corporate Tax RulesBasic Corporate Tax RulesBasic Corporate Tax RulesBasic Corporate Tax Rules

A. Basis of Assessment

B. Taxable IncomeB. Taxable Income

C. Deductions against Income

D C it l All (CA)D. Capital Allowances (CA)

E. Productivity and Innovation Credit (PIC)

F. Unutilised Losses/CA/DonationsG. Tax Schemes to Lower Tax PayableG. Tax Schemes to Lower Tax Payable


(A) Basis of Assessment(A) Basis of Assessment

Basic Corporate Tax Rules

Income is assessable on a preceding financial year basis

(A) Basis of Assessment(A) Basis of Assessment

p g y

Year of Assessment (YA)

year in which income tax is chargedyear in which income tax is charged

current YA is YA 2015

Basis Period for a YA

the period of income relevant to the YAp

e.g. 1 Jan 2014 to 31 Dec 2014 (YA 2015)

1 Apr 2013 to 31 Mar 2014 (YA 2015)1 Apr 2013 to 31 Mar 2014 (YA 2015)

1 Jul 2014 to 30 Jun 2015 (YA 2016)


(B) Taxable Income(B) Taxable Income


Income tax is payable on:

(B) Taxable Income(B) Taxable Income

Income received in Singapore f t id Si

Income accruing in or derivedf Si from outside Singapore

(i.e. foreign income received in Singapore)

from Singapore

(i.e. income sourced in Singapore) in Singapore)

E T d i f E g Interest income from

Singapore)

E.g. Trade income of a company carrying on business in Singapore

E.g. Interest income from a foreign bank outside Singapore that is remitted to Singapore


(C) Deductions against Income(C) Deductions against Income


(C) Deductions against Income(C) Deductions against Income

Deductions allowed for expenses wholly and exclusively incurred in the production of income

Expenses must be revenue in nature (e.g. normal day-to-day operating expenses

Expenses must be incurred (i.e. not contingent liability or estimated amount)

Deduction must not be prohibited under the Income Tax Act (e.g. private plated car expenses even if incurred for business purposes)(e.g. private plated car expenses even if incurred for business purposes)



Examples of NonExamples of Non--deductible Expensesdeductible Expenses

• Not incurred for business • E g Directors’ private expenses on

Private and Domestic • E.g. Directors private expenses on

entertainment or vacationDomestic Expenses

• E.g. Expenses incurred in acquiringCapital E.g. Expenses incurred in acquiring capital assets or expenses to incorporate a company

Capital Expenditure





• Required to make claims based on actual amounts incurred, with supporting receipts/invoices

Claim of Estimated Purchases or

supporting receipts/invoicesExpenses

• Related parties do not work in company

• Payments do not commensurate with

Unreasonable Claim of Remuneration to

• Payments do not commensurate with level of services performed

• To be deductible, payments must be reasonable having regard to similar

Related Parties

(e.g. Family b f reasonable having regard to similar

services performed by an independent employee

members of director)



Expenses incurred before Commencement of Expenses incurred before Commencement of Business (“PreBusiness (“Pre--commencement Expenses”)commencement Expenses”)

04

Pre-commencement 20

11

Business treated as commenced 2 Revenue

e penses inc ed

e YA

200 commencement

expenses are not deductible as they are not incurred in 20

04 -

2 as commenced business on the first day of the same financial YA

201

expenses incurred one year beforedeemed commencement

Befo

re the production of income. They are incurred before the company ro

m Y

A year in which it earns its first dollar of business receipt (i e

From

date will be allowed deduction*.

the company begins generating revenue.

Fr

receipt (i.e. deemed date of commencement of business).

*Does not apply to S10E companies


PrePre--commencement Expensescommencement Expenses


Example:Company earned its first dollar of

PrePre commencement Expensescommencement Expenses

Company incurred revenue expenses on 1.9.2012

p ybusiness receipt on 1.9.2014. Deemed date of commencement is 1.1.2014

1 7 2012 31 12 2012 31 12 2013 31 12 2014

1.9.2012

1.7.2012(date of incorp.)

31.12.2012 (YA 2013)

31.12.2013(YA 2014)

31.12.2014(YA 2015)

Revenue expenses incurred from:

1.1.2013 to 31.12.2013 (YA 2014) – treated as incurred on 1.1.2014, as expenses were incurred

Revenue expenses incurred from 1.7.2012 to 31 12 2012 (YA 2013) incurred on 1.1.2014, as expenses were incurred

one year before deemed date of commencement. Deductible in YA 2015

1.1.2014 to 31.12.2014 (YA 2015) – Deductible

to 31.12.2012 (YA 2013) are not deductible


( )as business is treated as having commenced on 1.1.2014

SummarySummary


Revenue expenses inc ed

From YA 2004 to YA 2011

From YA 2012

SummarySummary

incurred to YA 2011

During the financial year in which company earns its

Tax deductible Tax deductiblein which company earns its first dollar of business receipt

1 year before the first day of the basis period in which company earns its

Not tax deductible

Tax deductible. The revenue expenses are treated as incurred on thewhich company earns its

first dollar of business receipt

treated as incurred on the deemed date of commencement of business.business.

Refer to IRAS’ website at iras.gov.sg


g gBusinesses > Companies > Learning the Basics of Corporate Income Tax > Common Tax Reliefs That Help Reduce The Tax Bills

di ldi l


Deduction capped at:

Medical ExpensesMedical Expenses

1% of total employee remuneration or

2% of total employee remuneration if Company:p y p y

• Implemented Portable Medical Benefits Scheme (PMBS)or Transferable Medical Insurance Scheme (TMIS); and

• Met qualifying conditions under respective schemes

(For details, refer to guidelines issued by the Ministry ofManpower)



Cap of 2% of total employee remuneration will also apply if

Medical ExpensesMedical ExpensesCap of 2% of total employee remuneration will also apply if

Company provided employees with inpatient medical insurance benefits in the form of portable medical shield plans:p p

• by paying insurance premiums on behalf of employees to insurance companies directly; or

• by reimbursing employees’ Medisave Accounts, premiums paid by employees

or

Company made ad-hoc contributions to employees’ MedisaveAccounts (subject to cap of $1 500 per employee per year)Accounts (subject to cap of $1,500 per employee per year)

17© 2015 Inland Revenue Authority of Singapore. All Rights Reserved.



Total remuneration


Includes:

• employees' salaries, allowances & bonuses

di ecto s' em ne ation• directors' remuneration

• CPF contributions

E l dExcludes:

• directors' fees

• medical expenses• medical expenses

• cash allowances in lieu of medical expenses

• benefits-in-kindbenefits in kind

• skills development levy (SDL)

• foreign worker levy (FWL)


Deduction for Expenditure Incurred on Deduction for Expenditure Incurred on


ppRenovation or Refurbishment (R&R) Works Renovation or Refurbishment (R&R) Works under Section 14Q (incurred from 16 Feb 2008)under Section 14Q (incurred from 16 Feb 2008)

Granted over 3 consecutive years on a straight-line basis so long ascompany continues to carry on that trade for which the R&R costswere incurred

Subject to an expenditure cap of $150,000* for every relevant three-j p p $ , yyear period* Expenditure cap increased to $300,000 from YA 2013

Granted separately from the capital allowance framework for plant &machinery


Deduction for Expenditure Incurred on Deduction for Expenditure Incurred on R ti R f bi h t (R&R) W kR ti R f bi h t (R&R) W k


Examples of qualifying expenditure

Renovation or Refurbishment (R&R) Works Renovation or Refurbishment (R&R) Works under Section 14Q (incurred from 16 Feb 2008)under Section 14Q (incurred from 16 Feb 2008)Examples of qualifying expenditure(if they do not affect structure of the business premises)

G l l t i l i t ll ti d li hti General electrical installation and lighting

Kitchen and sanitary fittings

Door and window Door and window

Fixed partition

Wall coveringg

Flooring

False ceiling and cornice

More examples are available at IRAS’ website iras.gov.sg

Refer to IRAS’ website at iras.gov.sg

20© 2015 Inland Revenue Authority of Singapore. All Rights Reserved. .

g gBusinesses > Companies > Working Out Corporate Income Taxes > Business Expenses > Tax treatment of Business Expenses > Renovation or Refurbishment Works Expenditure (Section 14Q)

Deduction for Expenditure Incurred on Deduction for Expenditure Incurred on R ti R f bi h t (R&R) W kR ti R f bi h t (R&R) W k


Excludes expenditure relating to structural changes made to business

Renovation or Refurbishment (R&R) Works Renovation or Refurbishment (R&R) Works under Section 14Q (incurred from 16 Feb 2008)under Section 14Q (incurred from 16 Feb 2008)

Excludes expenditure relating to structural changes made to business premises and any:

a) design fees or professional fees) g p

b) antique

c) any type of fine arts

d) any works carried out in relation to a place of residence provided or to be provided to the company’s employees (applies to expenditure incurred from 18 Dec 2012))

Deduction against income => Forms part of adjusted loss

Available for carry forward & carry back Available for carry forward & carry back

Prior to YA 2013, unutilised S14Q deduction is not allowed to be transferred under group relief system


g p y

Deduction for Expenditure Incurred on Renovation or Refurbishment Deduction for Expenditure Incurred on Renovation or Refurbishment (R&R) Works under Section 14Q (incurred from 16 Feb 2008)(R&R) Works under Section 14Q (incurred from 16 Feb 2008)


Example: (Assuming no R&R costs incurred in the previous years)

YA 2014 YA 2015 YA 2016

(R&R) Works under Section 14Q (incurred from 16 Feb 2008)(R&R) Works under Section 14Q (incurred from 16 Feb 2008)

YA 2014 YA 2015 YA 2016

Total qualifying R&R costs

$90,000 $120,000 $150,000

incurred

Qualifying R&R t

$90,000 $120,000* $90,000*costs

R&R claim $30,000($90k / 3 yrs)

$70,000[$30 000 +

$100,000[$30 000 +($90k / 3 yrs) [$30,000 +

$40,000 ($120k /3 years)]

[$30,000 + $40,000+$30,000 ($90,000/3years)]

years)]

* In YA 2015, the amount of qualifying R&R cost to be allowed is $120,000 ($300,000-$90,000) as the combined qualifying R&R cost for YA 2014 and YA 2015 is still within the


$90,000) as t e co b ed qua y g & cost o 0 a d 0 5 s st t t equalifying expenditure cap of $300,000 for the relevant three-year period. In YA 2016,qualifying R&R cost to be allowed is capped at $90,000 ($300,000-$90,000-$120,000).

Capital allowances given in place of depreciation and other capital

(D) Capital Allowances(D) Capital Allowances

Capital allowances given in place of depreciation and other capitalexpenditure, which are not tax-deductible

Given on qualifying fixed assets bought and used for trade purposesGiven on qualifying fixed assets bought and used for trade purposes

Exception - S-plated private passenger car

Not part of setting or part of premises in which business is carried on(e.g. renovation expenditure => Does not qualify for capital allowance)

Refer to IRAS’ website at iras gov sg


Refer to IRAS website at iras.gov.sgBusinesses > Companies > Working Out Corporate Income Taxes > Claiming Allowances



Examples of qualifying fixed assets:C


Carpet Electrical and electronic equipment (e.g. air-conditioning system,

security/alarm system, sprinkler system and electrical appliances)

Furniture and fixtures Industrial plant and machineryp y Motorcycle and bicycle Motor vehicle (goods/commercial vehicle such as lorry,

truck and van)truck and van) Movable partition Office equipment (e.g. computer, printer, photocopier,

fax machine and telecommunication equipment)fax machine and telecommunication equipment) Venetian blind and curtain




How to calculate

Qualifying assets Annual allowance (AA)


calculate allowance (AA)

Over working life of asset

• Apply to all qualifying assets

• Refer to 6th Schedule of f

• Initial allowance (IA) = 20% of cost

( % f ) /[Section 19] Income Tax Act for working life

• AA = (80% of cost) / No. of years of working life

3-year write-off

[Section 19A(1)]

Apply to all qualifying assets AA = 1/3 of cost

[Section 19A(1)]

1-year write-off (for specific assets)

• Computers• Prescribed automation

equipment listed in Income

AA = 100% of cost

assets)

[Section 19A(2)]

equipment listed in Income Tax (Automation Equipment) Rules 2004; and Amendment Rules 2010 (effective from


Rules 2010 (effective from 15 Dec 2010)


How to calculate Qualifying assets Annual


How to calculate Qualifying assets Annual allowance (AA)

1-year write-off ( f

Low-value assetsC f

AA = 100% of cost(only for low-value assets)

[Section 19A(10)]

• Cost of each asset not more than $5,000*

• Total claim for 1-year write-off of ll h t d t $30 000[Section 19A(10)] all such assets capped at $30,000

per YA

* Before YA 2013 it was $1 000 Before YA 2013, it was $1,000


((E)Productivity and Innovation Credit (PIC)E)Productivity and Innovation Credit (PIC)O e ieO e ie-- OverviewOverview

-- Tax Benefits under PICTax Benefits under PICPIC+ SchemePIC+ Scheme-- PIC+ SchemePIC+ Scheme

-- Cash PayoutCash PayoutPIC BonusPIC Bonus-- PIC BonusPIC Bonus

-- PIC IT and Automation EquipmentPIC IT and Automation Equipment-- Training of EmployeesTraining of Employees-- Training of EmployeesTraining of Employees-- Abusive PIC arrangementsAbusive PIC arrangements


Overview of PIC SchemeOverview of PIC Scheme

Training of Employees

6 activities covered under scheme:

Training of Employees

Purchase/Leasing of PIC IT and Automation Equipment

Acquisition/Licensing of Intellectual PropertyAcquisition/Licensing of Intellectual Property

Registration of Intellectual PropertyRegistration of Intellectual Property

Research & DevelopmentResearch & Development

Approved Design Project


Approved Design Project

28

Tax Benefits under PICTax Benefits under PIC

Years of Assessment

2011 to 2018 2013 to 2015

400% tax Cash payout PIC Bonus400% tax deductions/allowances

Cash payout PIC Bonus(Expire in YA 2015*)

400% tax deductions/ Opt for cash payout Dollar for dollar/allowances on expenditure on each of the 6 activities for

p p yin place of tax deductions/ allowances for

matching on qualifying expenditure, subject to the cap of $15,000the 6 activities for

financial years 2010 to 2017

allowances for financial years 2010 to 2017

to the cap of $15,000 over the 3-year period


* Announced in Budget 2015

400% Tax Deductions / Allowances400% Tax Deductions / Allowances400% Tax Deductions / Allowances400% Tax Deductions / Allowances


Tax Deductions / AllowancesTax Deductions / AllowancesTax Deductions / AllowancesTax Deductions / Allowances400% tax deductions/allowances on up to $400,000 expenditure p $ , pper year in each of the 6 activities

To allow max PIC benefits the spending cap across YAs for eachTo allow max PIC benefits, the spending cap across YAs for each activity is as shown below:

Years of Expenditure Cap per Tax Deduction Assessment Activity per Activity

2011 and 2012 (Combined)

$800,000 $3,200,000(400% x $800,000)(Combined) (400% x $800,000)

2013 to 2015 (Combined)

$1,200,000 $4,800,000(400% x $1,200,000)

2016 to 2018(Combined)

$1,200,000 $4,800,000(400% x $1,200,000)


Tax Deductions / AllowancesTax Deductions / Allowances

Expenditure cap per qualifying activity applies only if carrying on a trade or business for the relevant YAs Otherwise combined cap istrade or business for the relevant YAs. Otherwise, combined cap is reduced accordingly

l d/ d b h tFor newly incorporated/registered businesses whose 1st YA is YA 2014, the combined expenditure cap for YAs 2014 to 2015 per activity is $800,000

Expenditure is net of grant or subsidy by the government or statutory boardboard

Expenditure exceeding the cap can still enjoy deduction basedExpenditure exceeding the cap can still enjoy deduction based on existing rules


Tax Deductions / AllowancesTax Deductions / AllowancesTax Deductions / AllowancesTax Deductions / Allowances

Potential Maximum Benefits for YA 2013 YA 2014 & 2015 combinedPotential Maximum Benefits for YA 2013, YA 2014 & 2015 combined

Deduct up to $28.8M (400% x $1.2M x 6 activities)

R&DIP

Acq isition/R&D Acquisition/Licensing

IP Registration

Training 400% deduction/allowances on up to $1.2M expenditure

DesignAutomation


g

PIC+ SchemePIC+ Scheme


PIC+ SchemePIC+ SchemeFrom YA 2015, qualifying SMEs that invest in excess of the combined

cap of $1.2 million in any of the 6 qualifying activities will enjoy enhanced deductions/allowances on an additional amount of $200 000enhanced deductions/allowances on an additional amount of $200,000 for each qualifying activity per YA

Maximum combined expenditure cap applicable for each 3-year period:p p pp y p

YA 2013 2014 2015 2016 2017 2018

Max. annual cap 400,000 400,000 600,000 600,000 600,000 600,000

Max. combined cap* $1,400,000# $1,800,000

* Only if you are carrying on a trade or business for the relevant YAs. Otherwise, the combined cap is reduced accordingly.

# The combined expenditure cap of $1,400,000 is only applicable for YA 2015 as the additional expenditure cap of $200,000 ($600,000 - $400,000) is not available for YA 2013 and YA 2014


PIC+ SchemePIC+ Scheme

Qualifying SMEsQualifying SMEs

Where the business is not part of Where the business is part of a groupWhere the business is not part of a group

• Revenue not more than $100 illi

Where the business is part of a group

• Group revenue not more than $100 million; or

• Employment size not more than 200 employees

pmillion; or

• Group employment size not more than 200 employeesp y


PIC+ SchemePIC+ SchemePart of a group

A parent and its subsidiaries as determined in accordance with the accounting standards (FRS 110), i.e. based on control

Includes both Singapore and foreign entities

To determine whether an SME is part of a group, reference is made to the last day of the relevant basis periody p

Once an SME is determined to be part of a group, the revenue and employment size criteria will be applied at the group leveland employment size criteria will be applied at the group level


Cash Payout Option Cash Payout Option Option to convert expenditure of up to $100,000 in all 6 activitiesper YAGiven in lieu of a tax deductionGiven in lieu of a tax deduction

At 30% (YAs 2011 and 2012) / 60% (YAs 2013 to 2018) cash payout ratepayout rate

$100,000 $60,000

Expenditure incurred during the basis period for

Cash Payout for YA 201560%

Tax deductions / allowances not granted on expenditure converted

during the basis period for YA 2015

Cash payout is non-taxable

Qualifying cost of expenditure that is converted to cash payout will


Qualifying cost of expenditure that is converted to cash payout will contribute towards the expenditure cap

Cash Payout OptionCash Payout OptionCash Payout Option Cash Payout Option

Years of Expenditure Cap MaximumYears of Assessment

Expenditure Cap for All 6 activities

Maximum Cash Payout

2011 and 2012 (Combined)

$200,000 $60,000 (30% x $200,000)

2013 to 2018(No pooling of

$100,000 per YA $60,000 per YA(60% x $100 000)(No pooling of

expenditure cap) (60% x $100,000)


Cash Payout Option Cash Payout Option y py p

From YAs 2013 to 2015 From YAs 2016 to 2018

• Employed at least 3 local employees* (Singapore Citizens or PRs with CPF

• Employed at least 3 local employees* (Singapore Citizens or PRs with CPFCitizens or PRs with CPF

contributions) in the last month of the quarter or

bi d t i th

Citizens or PRs with CPF contributions) in the last 3 months of the quarter or

bi d t i thcombined quarters in the basis period for the relevant YA

combined quarters in the basis period for the relevant YA

• Carrying on business operations in Singapore

• Carrying on business operations in Singapore

* Employees exclude sole-proprietors, partners under contract for service, shareholders who are also directors of companies


directors of companies

Note: The 3-local-employee condition does not apply to 400% tax deductions/allowances

How to Claim Cash PayoutHow to Claim Cash PayoutHow to Claim Cash PayoutHow to Claim Cash Payout

Cash payoutCash payout

How Submit:• PIC cash payout application form; andPIC cash payout application form; and • Hire-purchase template and Research and Development claim form (where applicable)

Wh Aft th d f h t bi d t iWhen After the end of each quarter or combined quarters in the financial year but not later than the income tax filing due date

IRAS strives to distribute the Cash Payout within three months from the date of e eipt of the ppli tion p o ided ll info m tion i bmitted In mo t eof receipt of the application, provided all information is submitted. In most cases, IRAS processes the applications within 6 weeks.


How to Claim Cash PayoutHow to Claim Cash Payout

Applying via mytax.iras.gov.sg Preferred!

Applying via application formy g g

• Step 1: Authorise an employee or a third party

pp

• Complete and submit the original (not a photocopy),employee or a third party

for “PIC Cash Payout Matters” via EASY. This is a one-off process

original (not a photocopy), printed and signed form to IRAS at

one off process

• Step 2: Log in to t i t k

55 Newton RoadRevenue HouseSingapore 307987mytax.iras.gov.sg to make

an applicationSingapore 307987

• Check PIC Cash Payout application status via mytax.iras.gov.sg

• View PIC Cash Payout Notices via mytax iras gov sg


• View PIC Cash Payout Notices via mytax.iras.gov.sg

PIC BonusPIC Bonus

Effective from YAs 2013 to 2015

You will receive an equal amount in PIC bonus for every dollar spent on qualifying activities, subject to the cap of $15,000 over the 3-year

i d f YA 2013 t 2015period from YAs 2013 to 2015

PIC Bonus is given on top of existing PIC benefits

PIC bonus is taxable

Administrative proceduresll b d k l fBusinesses will not be required to make separate applications for

PIC bonus

IRAS will process bonus automatically based on information declared in income tax return or PIC cash payout application


PIC BonusPIC Bonus

Payment of PIC BonusPayment of PIC BonusWithin three months from filing income tax return – if claimed

400% tax deductions/allowances

Within three weeks after cash payout has been approved – if claimed cash payout


PIC BonusPIC Bonus

Conditions for PIC Bonus

Inc s at least $5 000 of PIC q alif ing e pendit e^ d ing theIncurs at least $5,000 of PIC-qualifying expenditure^ during the basis period for the YA in which a PIC Bonus is claimed

E l d t l t 3 l l l * (Si Citi PREmployed at least 3 local employees* (Singapore Citizens or PRs with CPF contributions) in the: last month of basis period for the YA – if claiming 400% tax

deductions/allowances

last month of quarter or combined consecutive quarters – if claiming cash payoutcash payout

Carrying on business operations in Singapore

^ Net of grant or subsidy by the Government or statutory board

* Employees exclude sole-proprietors, partners under contract for service, shareholders h l di t f i


who are also directors of companies

PIC BonusPIC Bonus

Example

C i iCompany Description YA 2013 YA 2014 YA 2015

A PIC‐qualifying expenditure

$12k $2k $5k

PIC bonus $12k $0^ $3kPIC bonus $12k $0 $3k(capped)#

^ Incurs at least $5,000 of qualifying PIC expenditure during the basis period for the YA in which a PIC Bonus is claimed

# Combined cap of $15,000 for the 3 YAs


Application of the Application of the 33 locallocal employee conditionemployee condition33--locallocal--employee conditionemployee condition(From YAs 2013 to 2015) (From YAs 2013 to 2015)


33--locallocal--employee conditionemployee condition(Cash Payout & PIC Bonus)(Cash Payout & PIC Bonus)

Example 1: Business X has a Dec financial year-end and it opts for cash

(Cash Payout & PIC Bonus)(Cash Payout & PIC Bonus)YAs 2013 to 2015YAs 2013 to 2015

payout at the end of each quarter.

Year of Assessment 2015:Quarters

Jan – Mar 2014

Apr – Jun 2014

Jul – Sep 2014

Oct – Dec 2014Qua te s 2014 2014 2014 2014

Cash payout option exercised Quarter 1 Quarter 2 Quarter 3 Quarter 4

Relevant month for determining Mar 2014 Jun 2014 Sep 2014 Dec 2014

3-local-employee conditionp

When to submit From Apr From Jul From Oct From Jan cash payout application 2014 2014 2014 2015

Deadline to submit cash payout application

By income tax return filing due date • 15 Apr 2015/ 18 Apr 2015 (e-File return) for sole-proprietor and partnership


cash payout application 15 Apr 2015/ 18 Apr 2015 (e File return) for sole proprietor and partnership• 30 Nov 2015/ 15 Dec 2015 (e-File return) for company

33--locallocal--employee conditionemployee condition(Cash Payout & PIC Bonus)(Cash Payout & PIC Bonus)

Example 2: Business Y has a Dec financial year-end and it opts for cash

(Cash Payout & PIC Bonus)(Cash Payout & PIC Bonus)YAs 2013 to 2015YAs 2013 to 2015

Example 2: Business Y has a Dec financial year end and it opts for cash payout at the end of 1st, 3rd and 4th quarters


Jan – Mar 2014

Apr – Jun 2014

Jul – Sep 2014

Oct – Dec 2014Quarters 2014 2014 2014 2014

Cash payout option exercised

Quarter 1 Quarters 2 & 3 combined Quarter 4exercised

Relevant month for determining Mar 2014 Sep 2014 Dec 2014determining

3-local-employee conditionMar 2014 Sep 2014 Dec 2014

When to submit From Apr From Oct From Jan e to sub tcash payout application

o p2014

o Oct2014

o Ja2015

Deadline to submit By income tax return filing due date 15 Apr 2015/ 18 Apr 2015 (e File return) for sole proprietor and partnership


cash payout application • 15 Apr 2015/ 18 Apr 2015 (e-File return) for sole-proprietor and partnership• 30 Nov 2015/ 15 Dec 2015 (e-File return) for company

33--locallocal--employee conditionemployee condition(PIC Bonus (PIC Bonus -- For a business claiming enhanced For a business claiming enhanced

deductions/allowances)deductions/allowances)

Example 3: Business Z has a Dec financial year-end and it opts f h d d d i / ll

deductions/allowances)deductions/allowances)

for enhanced deductions/allowances.

Year of Assessment 2015:Financial period Jan – Dec 2014Financial period

Enhanced deductions / allowances

Relevant month for determining

3-local -employee conditionDec 2014

Deadline to submitBy income tax return filing due date

• 15 Apr 2015/ 18 Apr 2015 (e-File return) for sole-proprietor and partnership• 30 Nov 2015/ 15 Dec 2015 (e-File return) for company


Application of the Application of the 33 locallocal employee conditionemployee condition33--locallocal--employee conditionemployee condition(From YAs 2016 to 2018)(From YAs 2016 to 2018)


33--locallocal--employeeemployee conditioncondition(Cash Payout)(Cash Payout)

Example 1: Business X has a Dec financial year-end and it opts for cash

( y )( y )YAs 2016 to 2018YAs 2016 to 2018

payout at the end of each quarter.


Jan – Mar 2015

Apr – Jun 2015

Jul – Sep 2015

Oct – Dec 2015Qua te s 2015 2015 2015 2015


Quarter 1 Quarter 2 Quarter 3 Quarter 4

Relevant months for determining Jan – Mar

2015Apr – Jun

2015Jul – Sep

2015Oct – Dec

20153-local-employee condition 2015 2015 2015 2015

When to submit From Apr From Jul From Oct From Jan cash payout application 2015 2015 2015 2016


By income tax return filing due date • 15 Apr 2016/ 18 Apr 2016 (e-File return) for sole-proprietor and partnership


cash payout application • 30 Nov 2016/ 15 Dec 2016 (e-File return) for company

33--locallocal--employeeemployee conditioncondition(Cash Payout)(Cash Payout)

Example 2: Business Y has a Dec financial year-end and it opts for cash pa o t at the end of 1st 3rd and 4th q a te s

( y )( y )YAs 2016 to 2018YAs 2016 to 2018

payout at the end of 1st, 3rd and 4th quarters.


Jan – Mar 2015

Apr – Jun 2015

Jul – Sep 2015

Oct – Dec 2015


Quarter 1 Quarters 2 & 3 combined Quarter 4

Relevant months for determining

3 l l l diti

Jan – Mar 2015

Jul – Sep 2015

Oct – Dec 20153-local-employee condition 2015 2015 2015

When to submit cash payout application

From Apr 2015

From Oct 2015

From Jan 2016cash payout application 2015 2015 2016


By income tax return filing due date • 15 Apr 2016/ 18 Apr 2016 (e-File return) for sole-proprietor and partnership• 30 Nov 2016/ 15 Dec 2016 (e-File return) for company


cash payout application • 30 Nov 2016/ 15 Dec 2016 (e-File return) for company

How to Claim PIC (Summary)How to Claim PIC (Summary)400% tax deductions/allowances and PIC Bonus

Cash payout and PIC Bonus

Cash payout

A li bl YA YA 2011 t 2018 YA 2011 t 2015* YA 2016 t 2018Applicable YA YAs 2011 to 2018 YAs 2011 to 2015* YAs 2016 to 2018

How Claim tax deduction/allowances in income tax return

Submit PIC cash payout application form and hire-purchase template (where applicable)

When For company, submit income tax return by the filing due date: 30 Nov/ 15 Dec (e-File income tax return)

YAs 2013 to 2018:

After the end of each quarter or combined quarters )

For sole-proprietor/ partnership, submit income tax return and PIC declaration form by the filing due date: 15 Apr/ 18 Apr (e File

in the financial year but not later than the income tax filing due date

due date: 15 Apr/ 18 Apr (e-File income tax return)

Relevant month/months f d t i i

Last month of the basis period of the relevant YA

Last month of the quarter or combined

ti t

Last 3 months of the quarter or combined consecutive quarters

for determining 3-local-employee condition

consecutive quarters


*PIC Bonus is applicable from YAs 2013 to 2015

PIC IT and Automation Equipment PIC IT and Automation Equipment q pq p


PIC IT and Automation EquipmentPIC IT and Automation Equipment

Automation equipment that qualify for PIC from YA 2011 are prescribed in the “PIC IT and Automation Equipment List”

The “PIC IT and Automation Equipment List” has been expanded in Budget 2015p g

Both purchase and lease (only for own use) of PIC IT and t ti i t lif f PICautomation equipment qualify for PIC

One expenditure cap applies for both purchase cost and lease

• $800,000 for YAs 2011 and 2012 combined;

One expenditure cap applies for both purchase cost and lease payments:

• $1,200,000* for YAs 2013 to 2015 combined; and• $1,200,000* for YAs 2016 to 2018 combined


*For qualifying SMEs under PIC+ scheme, a higher expenditure cap applies


Current Automation Equipment in “PIC IT and Automation E i Li " i l dEquipment List" includes: Facsimile Optical character reader

Automated kitchen equipment for the purpose of food processing (for p

Laser printer Mainframe/Computers Milling machines

p p p g (F&B industry only)

Interactive shopping carts Automated housekeeping

Office system software Automatic storage and retrieval

system of warehouses I j i ld hi

equipment Automated seating systems for

convention or exhibition centre S lf li bi ff ld Injection mould machines

Automotive navigation systems Self-climbing scaffold system Concrete pumps

More examples are available at the IRAS website.


PIC IT and Automation EquipmentPIC IT and Automation EquipmentNew!

Description Enhancement*

“PIC IT and Automation Equipment List" has been expanded:


Description Enhancement*

Item 40 – Wastet i t

Examples: • Industrial shreddermanagement equipment • Industrial shredder• Mobile or static refuse compactor• Jaw crusher or impact crusher

L d h dli t• Load handling system• Composting equipment• Hydraulic shear

Effective from YA 2015


* Budget 2015 Enhancement

Website development costsWebsite development costs

100% write off will apply under S19A(10) instead of S19A(2)100% write-off will apply under S19A(10) instead of S19A(2)

PIC b fit b l i d ith ff t f YA 2014 t 2018PIC benefits may be claimed with effect from YAs 2014 to 2018 on capital expenditure incurred on developing a website, including costs incurred for the one-time registration of a domain name for the website



Case-by-case approval

F i t t i th PIC ITFor equipment not in the PIC IT and Automation Equipment List, apply to IRAS to have the equipment approved on a case-by-case basiscase basis

Submit the Application for Approval ofSubmit the Application for Approval of Equipment for PIC Form to IRAS (available on IRAS website) two months before the return filing due date or earlier g

Application will be processed within 3 weeks ofApplication will be processed within 3 weeks of receipt of form, provided all information is submitted



Case-by-case approval

Revised Criteria (from YA 2013)

Equipment Equipment

Revised Criteria (from YA 2013)

q pautomates or mechanises the

q penhances productivity of

work processes of the business

the business (for example, in terms of reduced manof reduced man-hours, more output or improved workor improved work processes)


Flowchart on Flowchart on PIC IT and Automation EquipmentPIC IT and Automation EquipmentPIC IT and Automation EquipmentPIC IT and Automation Equipment

IT and Automation Equipment

PIC ITIn PIC IT

NoYes

In PIC IT and

Automation Equipment

List*

Case–by-case approval, subject to

Capital AllowanceWrite-down over 1 year, 3 years or tax working life of

asset

List*

subject to meeting criteria

asset(Refer to the PIC IT and

Automation Equipment List*)

Approved cases Rejected cases

Capital AllowanceWrite-down over 3 years

or tax working life of asset

•Does not qualify for PIC •Continue with current Capital Allowance t t t

62

© 2015 Inland Revenue Authority of Singapore. All Rights Reserved.

* Refer to IRAS’ website at iras.gov.sg<Schemes><Businesses><Productivity and Innovation Credit Scheme>

treatment


E.g. Capital allowances (CA) under PIC for YA 2015

q pq p

Assume no CA claimed under PIC for YAs 2013 and 2014

Equip CostBase CA

Enhanced CA 300% on expenditure of TotalEquip-

mentCost CA

100%300% on expenditure of

up to $1.2MTotal

A $340k $340k $300k x 300% = $900k $1 240k

Note 1: Portion of Equipment A that qualifies for enhanced allowance = $610k ($800k cap less cost of

1,240k

900k

A

B

$340k

400k

k

$340k

400k

$ $(Note 1)

400k x 300% = 1,200k

$1,240k

1,600k

enhanced allowance = $610k ($800k cap less cost of Equipments B & C)

900kC 500k

1,240k500k 500k x 300% = 1,500k 2,000k

Total CA for YA 2015 4,840k

Note 1: Portion of Equipment A that qualifies for enhanced allowance = $300k ($1,200k cap less cost of Equipment B & C)


$ ($ , p q p )

PIC IT and Automation EquipmentPIC IT and Automation EquipmentCash payout option

Election is on “per equipment” basis (cannot claim tax deduction and cash payout on the same equipment)deduction and cash payout on the same equipment)

Expenditure in excess of expenditure conversion cap forfeitedforfeited

From YA 2012, HP equipment with repayment covering 2 or more basis periods are eligible for cash payout

• i.e. for equipment acquired under HP agreement signed during the basis periods relating to YAs 2012 to 2018

•HP equipment acquired under HP agreement signed during the basis period

o o e bas s pe ods a e e g b e o cas payou

relating to YA2011, and with repayment covering 2 or more basis periods, are not eligible for cash payout

From YA 2016, to qualify for cash payouts on qualifying b h h h i iequipment, businesses must show that the equipment is

in use by the business at the point when they elect for cash payout



Cash payout option for HP equipmentExpenditure conversion cap will be applied on the price of the PIC automation equipment (excluding finance charges) Actual amount of cash payout is based on the principal sum repaid during the yearduring the yearElection has to be done in year of acquisition and the cash payout rate is “locked-in” in the same year

HP agreement Repayment of equipment costing $100k

entered in YA 2012 YA 2013 YA 2014 YA 2015 YA 2016

YA 2012* 20k 20k 20k 20k 20k

Cash payout rate

30% 30% 30% 30% 30%rate

Cash payout 6k 6k 6k 6k 6k

*For HP agreement entered between YAs 2013 to 2018 the cash payout rate is 60%


For HP agreement entered between YAs 2013 to 2018, the cash payout rate is 60%


• Minimum 1-year holding for y gpurchased equipment

• Claw-back may apply if equipment disposed of or leased out within

Minimum ownership period

p1 year from date of purchase

• Automatic waiverAutomatic waiver• Case-by-case basis: If IRAS is

satisfied with the commercial reason(s) that led to the disposal

Waiver of claw-back provisions

reason(s) that led to the disposal


Example Automatic waiver


Example - Automatic waiver

If in the basis period when the equipment was acquired, the cost of qualifying equipment acquired (excluding the cost of equipment disposed of) is more than or equal to the expenditure cap

li bl t th t b i i d l b k i i t ti ll i d

Acquired $1,500,000 worth of

applicable to that basis period, claw-back provisions automatically waived

qualifying equipment in Jun 2014(Enhanced allowances claimed in YA 2015 on cost of $1,200,000) Holding period less than

one yearone year

Disposed of equipment costing $100,000 in Jan 2015

Jan 2014 Dec 2014 Dec 2015

Claw-back provisions automatically waived as cost of remaining qualifying equipment of $1,400,000 ($1,500,000 - $100,000) is higher


of $1,400,000 ($1,500,000 $100,000) is higher than expenditure cap of $1,200,000

PIC IT and Automation Equipment (Summary)PIC IT and Automation Equipment (Summary)

Purchase Lease

Without PIC 100% accelerated CA 100% revenue deductionWithout PIC 100% accelerated CA 100% revenue deduction

With PIC (YAs 2011 to 2018)

400% allowances/deductions subject to expenditure cap1, 100% allowances/deductions on balance exceeding the cap

Qualifying Expenditure Cost of equipment Lease payments

Minimum Ownership Period 1 year from the date of purchase N A 2Minimum Ownership Period 1 year from the date of purchase N.A.2

Cash Payout Option(YAs 2013 to 2018)

Per equipment basisConvert expenditure at 60% subject to cap3

Convert expenditure at 60% subject to cap3

to cap3

PIC Bonus PIC Bonus of up to $15,000 over 3-year period from YAs 2013 to 2015

1 Total expenditure cap for YAs 2011 and 2012 - $800,000 for each of the six activitiesTotal expenditure cap for YAs 2013 to 2018 - $1,200,000 for each of the six activities for each 3-year period (YAs 2013 to 2015 and YAs 2016 to 2018). For qualifying SMEs under PIC+ scheme, a higher expenditure cap applies

2 Equipment cannot be sub-leased within the same basis period of the YA


Equipment cannot be sub leased within the same basis period of the YA 3 Maximum expenditure for YAs 2013 to 2018 - $100,000 per annum for all six activities taken together

Training of EmployeesTraining of Employees



External training

All external training qualifyAll external training qualify

Qualifying Expenditure Includes Qualifying Expenditure Excludes

Course fees to any external trainingservice providerE.g. registration or enrolment fees,

Accommodation, travelling andtransport expenses of employeesattending the trainingg eg st at o o e o e t ees,

examination fees, tuition fees andaptitude test fees

atte d g t e t a g

Overheads like imputed rental andutilities

Rental of external training premises

Meals and refreshments providedduring the courses

Training materials and stationery



In-house training

Qualifying Training Programmes

Workforce Skills Qualification (WSQ) training courses

Courses approved by the Institute of Technical Education

On-the-job training by an on-the-job training centre certified by ITEtraining courses

accredited by the Singapore Workforce Development Agency

Technical Education (ITE) under the ITE Approved Training Centre

centre certified by ITE

Development Agency and conducted by a WSQ in-house training

Training Centre scheme

in house training provider


Training of EmployeesTraining of EmployeesIn-house training

• Non-certified in-house training courses, subject

In-house training

g , jto an expenditure cap of $10,000 per YA. The $10,000 cap cannot be combined across YAs

• The total training expenditure cap remains

From YAs 2012 to 2018

unchanged

• Training sessions conducted on operation of specialised equipment with the help of instruction manualinstruction manual

• Training on a business’ operating processes and functions in a group setting, with prepared materials and handouts

Examples of non-certified

in house training• Exclude informal sessions such as spontaneous

consultation, day-to-day problem solving and coaching sessions

in-house training


Training of EmployeesTraining of EmployeesIn-house training

Qualifying Expenditure Includes Qualifying Expenditure ExcludesQ y g p Q y g p

Salaries and other remuneration(excluding director fees) paid to in-house trainers for course delivery

Salaries and other remunerationpaid to in-house trainers for otherduties including preparation ofhouse trainers for course delivery

Rental of external training premises

duties including preparation oftraining material

Salaries and other remunerationMeals and refreshments provided

during the courses

Salaries and other remunerationpaid to employees providingadministrative support

Training materials and stationery Absentee payroll

Accommodation, travelling and, gtransport expenses

Overheads like imputed rental and


utilities


Training Base

If opt to convert $100,000 of training costs to cash payout:

Training Date

gcost

incurredCost

Converted deduction

100%Enhanced deduction

300% Total

11 Jan 14 $250k $250k $250k x 300% = $750k $1,000k

22 Mar 14

$250k

100k

350K100k

$250k

0$250k x 300% $750k

0750K

$1,000k

0

1,000K

YA 2015 Tax Computation

Net Profit Before Tax $1,850K

Add: Expenditure converted into cash 100kComputation(assuming no tax disallowable items)

Less: Enhanced deduction for training costs (750k)

Adjusted Profit Before Capital Allowances 1,200k

Add: Expenditure converted into cash 100k

Cash payout = 60% x $100k = $60k


Training of Employees (Summary)Training of Employees (Summary)In-house External

Without PIC 100% revenue deduction

With PIC (YAs 2011 to 2018)

400% tax deduction subject to expenditure cap1, 100% deduction on balance exceeding the cap

Rem ne tion fo o eQualifying Expenditure for Training of Employees including qualifying agents

- Remuneration for course delivery

- Rental of external premises- Refreshments

- Course fees paid- Rental of external premisesRefreshments- Training materials - Refreshments

- Training materials

Cash Payout Option(YAs 2013 to 2018) Convert expenditure at 60% subject to cap2

(YAs 2013 to 2018)

PIC BonusPIC Bonus of up to $15,000 over 3-year period from YAs 2013 to 2015

1 Total expenditure cap for YAs 2011 and 2012 - $800,000 for each of the six activitiesTotal expenditure cap for YAs 2013 to 2018 - $1,200,000 for each of the six activities for each 3-year period (YAs 2013 to 2015 and YAs 2016 to 2018). For qualifying SMEs under PIC+ scheme, a higher expenditure cap applies

2 d f 20 3 20 8 $ 00 000 f ll k h


2 Maximum expenditure for YAs 2013 to 2018 - $100,000 per annum for all six activities taken together

AbusiveAbusive PIC arrangementsPIC arrangements

Anti-abuse measures Deny PIC benefits arising from abusive arrangements

Impose penalties on promoters of PIC arrangements (including vendors and

l ) h k hconsultants) who know, or have reasonable grounds to believe that the arrangements they are promoting are b i PIC tabusive PIC arrangements.

Convicted offenders will have to pay aConvicted offenders will have to pay a fine of up to $10,000 and/ or imprisonment of up to three years


Abusive PIC arrangementsAbusive PIC arrangements

• Makes use of artificial, contrived or fraudulent step(s) to obtain PIC benefitsstep(s) to obtain PIC benefits

• Results in the payment of goods/ services for an amount that exceeds open market value without bona fide commercial reason or

Abusive arrangement

• No bona fide commercial reason for entering into arrangement

g

• Business A signs up for a training package of $5,000 with Vendor G for its employees on how to use certain cleaning products g p

• As part of the training package, Business A is given credits of $5,000 to redeem cleaning products sold by Vendor GU l ti f 30 i t t i i i

Example• Upon completion of a 30-minute training session,

Business A fully redeems $5,000 worth of cleaning products. It also makes a PIC cash payout claim on the purported training expenses of $5,000

p


p p g p $ ,• Contract is an abusive PIC arrangement as it makes

use of artificial steps to obtain PIC benefits

(F) U tili d C it l All(F) U tili d C it l All(F) Unutilised Capital Allowances (F) Unutilised Capital Allowances (UCA), Unutilised Losses (UL) and (UCA), Unutilised Losses (UL) and ( ), ( )( ), ( )Approved DonationsApproved Donations


UnutilisedUnutilised Capital Allowances (UCA) Capital Allowances (UCA)


May be carried forward to set-off future income of company

p ( )p ( )& & UnutilisedUnutilised Losses (UL)Losses (UL)

May be carried forward to set off future income of company

Conditions for claiming UCA & UL brought forward:

Same Business TestSame Business Test Applies only to UCA Same trade in respect of which CA were grantedp gShareholders’ Test Applies to both UCA & UL Ultimate shareholders & their shareholdings as at two

relevant dates are substantially the same (50% or more of total issued shares)of total issued shares)

Refer to IRAS’ website at iras.gov.sgBusinesses > Companies > Working Out Corporate Income Taxes >


Businesses > Companies > Working Out Corporate Income Taxes >Unutilised Items (Losses, Capital Allowances and Donations)


UnutilisedUnutilised Capital Allowances (UCA) Capital Allowances (UCA) && U tili dU tili d L (UL)L (UL)

Relevant Dates

& & UnutilisedUnutilised Losses (UL)Losses (UL)

UCA Last day of YA (31 Dec) in which CA arose

& First day of YA (1 Jan) in which UCA is set-off

UL Last day of year (31 Dec) in which losses incurred

& First day of YA (1 Jan) in which UL is set-off

Example:

UCA and UL for financial year ended 31 Oct 2011 (YA 2012) tob t ff i t i i YA 2015be set-off against income in YA 2015.

Relevant Dates

31 D 2012 1 J 2015UCA

UL

31 Dec 2012 1 Jan 2015

31 Dec 2011 1 Jan 2015


Approved DonationsApproved Donations


Donations are not deductible expenses as they are noti d i h d i f i

Approved DonationsApproved Donations

incurred in the production of income Please add back to arrive at adjusted profit

However you can claim deduction on donations made toapproved IPCs or other approved recipients for Singaporecharitable purposescharitable purposes Claim deduction of 2.5 times the amount of donations

made from 1 Jan 2009 to 31 Dec 2014 and from 1 Jan2016 to 31 Dec 2018*

Claim deduction of 3 times the amount of donationsmade from 1 Jan 2015 to 31 Dec 2015*made from 1 Jan 2015 to 31 Dec 2015

* Announced in Budget 2015


Announced in Budget 2015


Approved DonationsApproved DonationsFrom 1 Jan 2011, company is required to provide itsidentification number to an IPC to claim tax deduction on thedonation made

View donations made to approved IPCs from 1 Jan 2011 at thee-Service “View Donations” in mytax.iras.gov.sg

Unutilised donations can only be carried forward and for up to 5years

For example: Unutilised donations for YA 2009 should be For example: Unutilised donations for YA 2009 should bedisregarded in YA 2015

Condition for claiming unutilised donations

Satisfy shareholders’ test (% of shareholding of commonshareholders as at two relevant dates are 50% or more)

Relevant Dates

Last day of year (31 Dec) in which donations were made

& First day of YA (1 Jan) in which unutilised donations


in which donations were made in which unutilised donations are to be deducted

(G) Tax Schemes to Lower Tax Payable(G) Tax Schemes to Lower Tax Payable-- Partial Tax ExemptionPartial Tax Exemptionpp-- Tax Exemption for New StartTax Exemption for New Start--up Companiesup Companies-- Corporate Income Tax RebateCorporate Income Tax Rebate



PartialPartial TaxTax ExemptionExemption

Partial tax exemption on chargeable income taxed at 17% of up to $300,000:

First $10,000 @ 75% $7,500

Next $290,000 @ 50% $145,000, ,

Total $300,000 $152,500

Maximum Exempt Amount is $152,500 for each YA




Example:(2)(1)


Chargeable Income (CI) before Exempt Amount

( )

120,000

( )

320,000Exempt Amount ,,

Declare CI before exempt amount (IRAS will automatically compute Less: Exempt Amount

152,500

exempt amount) 1. (75% x 10,000) 7,500

(50% x 290,000) 145,000

2. (75% x 10,000) 7,500(50% x 110,000) 55,000 62,500

Net CI after Exempt Amount $167,500 $57,500


TaxTax ExemptionExemption SchemeScheme forfor NewNew StartStart--upupBasic Corporate Tax Rules

Granted to qualifying new company for its first 3 consecutive

CompaniesCompanies

YAs

Exemption granted on chargeable income taxed at 17%:

YA Exempt Income

2008 onwards First $100,000 @ 100%= $100,000Next $200,000 @ 50% = $100,000

$300,000 $200,000

Maximum Exempt Amount is $200,000 for each YA

Refer to IRAS’ website at iras.gov.sgBusinesses > Companies > Learning the Basics of Corporate Income Tax >


Businesses > Companies > Learning the Basics of Corporate Income Tax >Common Tax Reliefs That Help Reduce The Tax Bills

TaxTax ExemptionExemption SchemeScheme forfor NewNew StartStart--upupii


Qualifying conditions

CompaniesCompanies

Company incorporated in Singapore

Tax resident in Singapore for that YA


Tax resident in Singapore for that YA

A company is tax resident in Singapore if control andmanagement of its business is exercised in Singaporeg g p

No more than 20 shareholders throughout basis periodfor that YA

All are individuals beneficially and directly holding theshares in their own names; or

Where there are non-individual shareholders, at leastone is an individual beneficially and directly holding atleast 10% of the issued ordinary shares of the company


least 10% of the issued ordinary shares of the company

TaxTax ExemptionExemption SchemeScheme forfor NewNew StartStart--upup



pp ppCompaniesCompanies

The following companies incorporated after 25 Feb 2013 arenot eligible for the tax exemption scheme:

1) Property development companies Any company that buys or leases land and arranges for

a building to be built on land in order to lease, manageg , gor sell the building

2) Investment holding companies A company whose principal activity is that of

investment holding Derives investment income such as rental, dividend or

interest income

Companies that do not qualify for this scheme will still be


eligible for partial tax exemption

TaxTax ExemptionExemption SchemeScheme forfor NewNew StartStart--upupii


Example:

CompaniesCompanies

Date of incorporation: 1 Nov 2013

For trading company, attribute the adjusted profit/ loss to YA 2014 and1 Nov 2013

Financial year-end: 31 Dec 2014

profit/ loss to YA 2014 and YA 2015. Time basis of apportionment may be used.

First set of accounts: 14 mths

31.12.161.1.13 31.12.1431.12.13 31.12.15

YA 2014(1st YA upon

incorporation)

YA 2017 onwardsPartial tax exemption

YA 2015(2nd YA)

YA 2016(3rd YA)


incorporation)

HowHow toto claimclaim inin ee--FormForm CCBasic Corporate Tax Rules



17%

Corporate Tax Rate

Corporate Income Tax Rebate

Applicable for YA 2013 to YA 2017*

All i ill i 30% CIT b t d tAll companies will receive a 30% CIT rebate, capped at: $30,000 per YA for YA 2013 to YA 2015 $20,000 per YA* for YA 2016 and YA 2017 $20,000 per YA for YA 2016 and YA 2017

CIT rebate is computed on the tax payable after deducting tax set-offs (e.g. foreign tax credit)


* Budget 2015 Enhancement

Corporate Tax ObligationsCorporate Tax ObligationsA Tax Filing ObligationsA. Tax Filing Obligations

B. How to Pay Your Tax

C How to Object to Your Tax AssessmentC. How to Object to Your Tax Assessment

D. What to Do If You Discover Errors in Your Tax Declaration : IRAS’ Voluntary Disclosure ProgrammeIRAS Voluntary Disclosure Programme

E. Record-Keeping Requirements

F Keeping Company’s Particulars Up-To-DateF. Keeping Company s Particulars Up To Date


(A) Tax Filing Obligations(A) Tax Filing Obligations

Corporate Tax Obligations

Responsibilities of Company

Comply with the submission of Income Tax Returns

(A) Tax Filing Obligations(A) Tax Filing Obligations

Comply with the submission of Income Tax Returns

Make truthful and accurate declaration of income

Company is responsible for all declarations made notwithstanding

that it has engaged the services of tax agents

Overview of Tax Filing Obligations

To File Byy

Estimated Chargeable Income (ECI)

3rd Month after financial year end

Form C-S/ Form C 30 Nov each year


Overview of Tax Filing ObligationsOverview of Tax Filing Obligations


Illustration:

Overview of Tax Filing ObligationsOverview of Tax Filing Obligations

Financial year end: 30 Jun 2014

1 Jul 2013

YA 2015B i i d 1 J l 2013

30 Sep 2014 30 Nov 2015

Basis period: 1 Jul 2013 to 30 Jun 2014 File ECI for YA 2015

(3 months after fi i l d d 30

File Income Tax Return for YA 2015financial year ended 30

Jun 2014)Return for YA 2015



Estimated Chargeable Income (ECI)Estimated Chargeable Income (ECI)

All companies are required to file an estimate of chargeableincome (ECI) within 3 months after end of financial period

g ( )g ( )

income (ECI) within 3 months after end of financial period

E.g. Financial year ending 30 Jun 2015ECI for YA 2016 must be filed by 30 Sep 2015

IRAS will issue ECI reminder letter in last month of financial year

From YA 2013, companies with financial year endingOct 2012 onwards will not need to file ECI if:

Annual revenue is not more than $1 million; and$ ;

ECI* is nil

Companies that do not qualify for the above concession mustfil th i ECI ithi 3 th ft d f fi i l i dfile their ECI within 3 months after end of financial period, evenif they do not receive the ECI reminder letter

* before deducting exempt amount under the partial tax exemption or tax exemption


scheme for new start-up companies

ee Filing of ECIFiling of ECI


ee--Filing of ECIFiling of ECI

e-File by 26th of the month to enjoy more instalments* toy j ypay your estimated taxE.g. Company’s financial year ended on 31 Dec

ECI filed by e-Filers ECI filed by Paper-Filers

26 Jan 10 24 Jan 526 Jan 10 24 Jan 5

26 Feb 8 24 Feb 4

26 Mar 6 24 Mar 3

After 26 Mar No instalments After 24 Mar No instalments

* A company must sign up for GIRO to enjoy paying its estimated tax by instalments. The first few instalments could be combined and deducted on the


first GIRO deduction date, depending on the date of filing of ECI.


Log in to https://mytax.iras.gov.sg

i Si P / IRAS Pi

2

using your SingPass / IRAS Pin after you have been authorised by the company at EASY 1the company at EASY. 1


Enhanced Enhanced SingPassSingPass (launched on 5 Jul (launched on 5 Jul 2015)2015)2015) 2015)

Features of Enhanced Singpass:

I d S itImproved SecurityReceive SMS/ email notification for changes made to profileTwo-Step Verification (2FA)Two-Step Verification (2FA)

– Option to register and activate mobile or OneKey token or both

Greater ConvenienceGreater Convenience

To enjoy the new features, users will need to:

d h i i b d d f• Update their SingPass account by providing and verifyingtheir mobile number and email address, as well as setting uptheir security questions and answerstheir security questions and answers.

• Set up their 2-step verification by registering, activatingand linking their OneKey token or mobile phone to their


and linking their OneKey token or mobile phone to theirSingPass account.

When to set up your 2FAWhen to set up your 2FA

Public given 1 year to set up their 2FA i e Jul

When to set up your 2FAWhen to set up your 2FA

Public given 1 year to set up their 2FA, i.e. Jul 2015 to Jun 2016

• IRAS’ e-Services, myTax Portal and EASY, are 2FA enabled from 5 Jul 2015

• 2FA capability is enabled under SingPass login

You can still log in to IRAS’ e-services using justYou can still log in to IRAS e services using just your password (1FA) until Jun 2016 if you have not signed up for 2FA yet


22--Factor Authentication (2FA)Factor Authentication (2FA)


New New SingPassSingPass Login Screen Login Screen gg ggfrom 5 July 2015from 5 July 2015


22--Factor Authentication (2FA)Factor Authentication (2FA)


Channels of Help & SupportChannels of Help & SupportC a e s o e p & Suppo tC a e s o e p & Suppo tOneKey Token Helpdesk SingPass HelpdeskOneKey Token Helpdesk

• Hotline:+65 6566 3539 (OKONEKEY)

• Hotline:+65 6566 3539 (OKONEKEY)

SingPass Helpdesk

• Hotline:+65 6643 0555

• Hotline:+65 6643 0555( )

• Email: [email protected]

( )

• Email: [email protected] • Helpline Operating Hours:Monday – Friday: 8 am to 8 pmS d 8 2

• Helpline Operating Hours:Monday – Friday: 8 am to 8 pmS d 8 2• Care Centre Opening Hours:

Monday – Friday: 8 am to 6 pmSaturday: 8 am to 2 pm

• Care Centre Opening Hours:Monday – Friday: 8 am to 6 pmSaturday: 8 am to 2 pm

Saturday: 8 am to 2 pm(Closed on Sunday and PHs)Saturday: 8 am to 2 pm(Closed on Sunday and PHs)

y p(Closed on Sunday and PHs)

• OneKeyCustomer Care Centre:

y p(Closed on Sunday and PHs)

• OneKeyCustomer Care Centre:

• SingPassEmail:[email protected]

• SingPassEmail:[email protected]

yInternational Plaza10 Anson Road #06-19 International Plaza Singapore 079903

yInternational Plaza10 Anson Road #06-19 International Plaza Singapore 079903

© 2015 Inland Revenue Authority of Singapore. All Rights Reserved. 103For more news and information on Enhanced SingPass, visit www.ida.gov.sg


Option 1



Option 2





1

2



3

4

Enter ECI to be taxed at 17% before deducting exempt amount.



2015


2015


Income Tax Return (Form CIncome Tax Return (Form C--S/ C)S/ C)Income Tax Return (Form CIncome Tax Return (Form C S/ C)S/ C)

All companies have to file a tax return by 30 Nov of each yearAll companies have to file a tax return by 30 Nov of each year

A NIL return is required

Due date for filing tax return for YA 2015: 30 Nov 2015

N t i f ti b d 30 N 2015No extension of time beyond 30 Nov 2015

Exception: If you e-File Form C-S/ C, the filing due date is extended until 15 Dec 2015


Income Tax ReturnIncome Tax Return


Income Tax ReturnIncome Tax Return

File Form C and Appendix on Additi l I f ti

File Form C-S (Simplified Tax Filing for Small Companies)

OR

Additional Information on Income & Deductions (Form IRIN 301)

for Small Companies)For companies that meet qualifying conditionsg


Filing PackagesFiling Packages


Filing PackagesFiling Packages3 different filing packages issued to companies

Group Companies likely to Companies likely toGroup Companies likely to qualify for Form C-S

Companies likely to qualify for Form C

Filing Package to 1. Form C-S e-Filing 2. Form C e-Filing be issued package*# package# or

3. Form C Package

If a company received Form C but meets the qualifying conditions for filing Form C-S, it can still proceed to e-File Form C-S (it does not need to return the Form C to IRAS for cancellation)the Form C to IRAS for cancellation)

If a company received a Form C package, it can still proceed to e-File Form C if it so wishes

* From YA 2014, IRAS will not issue paper copies of Form C-S# If a company cannot e-File Form C-S/ C, it can download the softcopy of Form C-S/ C from IRAS

website


website

Qualifying Conditions for FilingQualifying Conditions for Filing FormForm CC--SS


Qualifying Conditions for Filing Qualifying Conditions for Filing Form Form CC SS

Company:Does not claim any of th f ll i

p ythe following:

• Is incorporated in Singapore • Has an annual revenue* of

• Carry-back of Current Year Capital Allowances/Lossesas a a ua e e ue o

$1 million or below • Derives only income taxable

at 17%

o a es/ osses• Group Relief• Investment Allowance • Research & Development Taxat 17% Research & Development Tax

Allowance• Foreign Tax Credit and

Tax Deducted at SourceTax Deducted at Source

* Revenue refers to the main income source of the company excluding separate source income such as interest

Note: Companies that do not meet the conditions have to submit to IRAS a full set of tax return comprising theForm C, financial accounts, tax computation and supporting schedules.


Benefits of eBenefits of e--FilingFiling


gg

Extended filing deadline of 15 Dec, instead of 30 Nov

On-the-spot guidance as you e-File, with the iHelp facility

In-built formulae to auto-compute certain fields

Save draft until you are ready to submit

Auto-computation of estimated tax payable

Receive instant acknowledgement when you have successfully e-Filed


Feedback on eFeedback on e--Filing Income Tax ReturnFiling Income Tax ReturnCorporate Tax Obligations

Feedback from companies and tax agents

“The online Form C-S is easy to use and requires minimal training. It generally helps y q g g y pto cut down time spent on updating basic information of the client. No more worrying whether the hard copy Form C-S can reach us on time for the tax return filing! The ease and convenience of e-Filing anytime and anywhere, especially

l t li t d i thi hi hl di it l d bil With Fili fappeals to our clients and us in this highly digital and mobile age. With e-Filing of Form C-S, we can definitely accomplish more in less time!”

“The benefit of e-Filing Form C has been the reduction of administrative work suchgas arranging for the submission of hardcopies to IRAS and engaging courierservices, and of printing cost.”

“e Filing with built in validations helped us to minimise errors The e Filing portal is“e-Filing with built-in validations helped us to minimise errors. The e-Filing portal is available 24 hours a day and has given us the flexibility to file at our own convenience. It is easier to manage a client's file as there is less paper work as compared to paper-based filing where we need to make photocopies. The draft p p p g p pversion of Form C-S has made our job easier and faster as we use it to get the client's approval for submission. The processing time of the finalisation of assessments is faster when we e-Filed the tax return.”



How to Access eHow to Access e--Services including eServices including e--Filing Form CFiling Form C--S/CS/C

Company Administrator Access

e-Services Authorisation System (EASY)

code and SingPass/IRAS Pin

e Services Authorisation System (EASY)

Company Staff/ Tax Agent

Authorise

Company Staff/ Tax Agent

L i t t i

SingPass/ IRAS Pin

Login to mytax.iras.gov.sgSTART!

Use e-Services





Online system that allows organisations to authorise their employees/third party to access e-Services on their behalf

All authorisations of staff and directors/ tax agent must bedone at EASY

Log in to EASY using your company’s Access Code*

*Access Code is a unique password issued and sent to company’s registered address shortly after its incorporation. Please request a new Access Code if you have misplace your access code or its existing Access Code is no longer valid. The request form is available at IRAS website iras.gov.sg e-Services > Businesses > Companies > EASYq g g p




Log in to EASYLog in to EASY


Log in to EASYLog in to EASY

Access Code application form

L i i i di id lLog in using your individual SingPass OR IRAS Pin


S i A th i ti S t (EASY)


A th li ti / f


Preparer• A preparer prepares the application/ form

for submission to an Approver

• The preparer does not have the rightsThe preparer does not have the rights to submit directly to IRAS

Approver IRAS

• An Approver will approve or edit, and submit the application/ form to IRAS

• The approver can also prepare the application/ form and submit it to IRAS (for companies without the Preparer role)


ee--Filing Income Tax ReturnsFiling Income Tax ReturnsF CF C SS-- Form CForm C--SS

-- Form C Form C New!New!


Form CForm C--S eS e--Filing packageFiling package


ee--Filing of Form CFiling of Form C--S at mytax iras gov sgS at mytax iras gov sg


Form C-S is a shortened 3-page Income Tax Return for smalli

ee--Filing of Form CFiling of Form C--S at mytax.iras.gov.sgS at mytax.iras.gov.sg

companies

Not required to submit financial accounts, tax computation andsupporting schedules with Form C-S but still need to preparesupporting schedules with Form C-S but still need to prepareand submit to IRAS upon request

You can e-File Form C-S for YA 2015 via mytax.iras.gov.sgy g gfrom 2 Jun 2015

Refer to IRAS’ website at iras.gov.sge e to S ebs te at as go sgBusinesses > Companies > Filing Taxes (Form C-S/ C) > Guidance on Completing Form C-S/ C


Demo on eDemo on e--Filing Form CFiling Form C--SS

Refer to IRAS’ website at iras.gov.sgBusinesses > Companies > Filing Taxes (Form C-S/ C) > Guidance on Completing Form C-S/ C


How to Complete Form CHow to Complete Form C--S for Qualifying Allowances S for Qualifying Allowances d D d ti d PICd D d ti d PIC


Example 1:Company spent $10 000 in financial year ending 2014 (i e basis period for YA 2015)

and Deduction under PICand Deduction under PIC

Company spent $10,000 in financial year ending 2014 (i.e. basis period for YA 2015)to purchase computers and also incurred $1,000 on external training for employees,both of which qualify for enhanced allowances and deduction respectively under PIC.

Complete Part B, Boxes 7, 12 and 13 of the e-Form C-S

$1 000 x 300%$1,000 x 300% =$3,000


$10,000 x 300% =$30,000

How to Complete Form CHow to Complete Form C--S for Qualifying Allowances S for Qualifying Allowances


Example 1 (cont’d):


Example 1 (cont d):

Complete Part C, Boxes 32 and 34 of the e-Form C-SComplete Part C, Boxes 32 and 34 of the e Form C S




Example 2:

pp Q y gQ y gand Deduction under PICand Deduction under PIC

pCompany received a Government grant of $8,000 for the course fees of $50,000 (fees before deducting Government grant) paid in financial year ending 2014 (i.e. basis period for YA 2015).

Complete Part B, Box 7 of the e-Form C-S

$50,000 - $8,000= $42,000$42,000 x 300%= $126,000






Complete Part C, Box 34 of the e-Form C-S

$50,000 - $8,000 =$42,000$ ,




Example 3: d $ 0 000 l f f l d


My company incurred $50,000 on external training course fees in financial year ending 2014 (i.e. basis period for YA 2015). It converted training fees of $10,000 into cash payout.

Complete Part B, Boxes 4 and 7 of the e-Form C-S

$50,000 - $10,000=$40,000

$40,000 x 300%$120 000


=$120,000

How to Complete Form CHow to Complete Form C--S for Qualifying AllowancesS for Qualifying Allowances



How to Complete Form CHow to Complete Form C S for Qualifying Allowances S for Qualifying Allowances and Deduction under PICand Deduction under PIC

p ( )


$50,000 - $10,000=$40,000




Example 4:


Example 4: Company purchase computers under hire purchase and made principal repayment of $50,000 in the financial year ending 2014 (i.e. basis period for YA 2015).

Complete Part B, Boxes 12 and 13 of e-Form C-S

$50,000 x 300%=$150,000


How to Complete Form CHow to Complete Form C--S for Qualifying Allowances S for Qualifying Allowances and Deduction under PICand Deduction under PIC




Complete Part Box 32, Part C of the e-Form C-S




Example 5:


Company spent $300,000 in financial year ending 2014 (i.e. basis period for YA 2015) to purchase computers that qualify for enhanced allowances under PIC. It has opted to defer its claim for capital allowances on the computers.

Complete “0” on Part B, Boxes 12 and 13 of e-Form C-S




E mple 5 ( ont’d)





Form C e-Filing Package Form C package


Fili f F CFili f F C


Companies that do not meet the conditions for filing Form C-S have t b it F C

Filing of Form CFiling of Form C

to submit Form C

A complete set of Income Tax Return (Form C) consists of:Form CForm IRIN 301 (Additional Information on Income & Deductions)Audited/ Unaudited accounts Not required to be submitted if full set of financial accounts

has been filed with ACRA in XBRL formatDetailed profit and loss statement Tax computation and supporting schedulesRelevant forms (e.g. group relief form, R&D claim form)( g g p , )



2 Modes of e2 Modes of e--Filing of Form CFiling of Form C

Implemented 2 modes of filing:

Online Form C (similar to e-Form C-S)Online Form C (similar to e Form C S)Complete the Form C template online at mytax.iras.gov.sg

Form C (Upload)Form C (Upload)Download a softcopy of Form C (PDF version) onto your PC / laptopComplete it at your convenienceUpload the completed Form C and relevant attachments atUpload the completed Form C and relevant attachments at mytax.iras.gov.sg


Demo on eDemo on e--Filing of Form C (Upload)Filing of Form C (Upload)1. Download Form C (Upload) (PDF

format) file from our website and complete it at your own time and

i i l l hi2. Log in to www.mytax.iras.gov.sg(Ensure you are authorised via EASY system)

Form C (upload) (PDF)

convenience, in your local machine (Ensure you are authorised via EASY system)

3. Upload these documents onlineonline

Form C (Upload)* tax computation audited/ unaudited accounts detailed profit or loss statement detailed profit or loss statement other supporting documents

* Do not upload scanned copy of Form C

4. Click ‘Submit’


Demo on eDemo on e--Filing of Form CFiling of Form C


How to complete Form C for qualifying allowances How to complete Form C for qualifying allowances under PICunder PIC


under PICunder PICExample: Company spent $300,000 to purchase computers that

qualify for enhanced allowances under PIC in the financial q yyear ending 2014 (i.e. basis period for YA 2015). It has opted to defer its claim for capital allowances on the computers.computers.

1. “General Information” tab in e-Form C


How to complete Form C for qualifying allowancesHow to complete Form C for qualifying allowances


C l B 29 d “A P 2” b i F C


2. Complete Box 29a under “Assessment Part 2” tab in e-Form C with “$300,000”


H t l t F C f lif i llH t l t F C f lif i ll



3. Complete Part E Box 21 under “Additional Information” tab in e-Form C



Checklist By

1 File ECI 3 months after1 File ECI 3 months afterfinancial year end

2 Prepare financial accounts

3 Prepare tax computation andsupporting schedules

4 e File Form C S/ C e File to enjoy4 e-File Form C-S/ C(for qualifying companies)

O

e-File to enjoy extended filing due date till 15 Dec

Or

e-File Form C [If unable to e-File, please submit paper

(with accounts and tax computation and supporting schedules)

Form C-S/ C by 30 Nov]


What Happens If You Don’t ComplyWhat Happens If You Don’t Comply


Enforcement Actions for NonEnforcement Actions for Non filing of ECI /filing of ECI /


Enforcement Actions for NonEnforcement Actions for Non--filing of ECI / filing of ECI / Income Tax ReturnIncome Tax Return

Estimate the company’s income and issue an assessment Payment has to be made within one month from the date

f N ti f A tof Notice of Assessment Any objection to the assessment will be reviewed only

upon submission of the tax returnp

Summons the company or director to court Upon conviction penalties up to $1 000/return may be Upon conviction, penalties up to $1,000/return may be

imposed; $50/day for continuous offence; and even double the amount of tax that the Comptroller may, to the best of hi j d b blhis judgment, assess to be payable

Refer to IRAS’ website at iras gov sg


Refer to IRAS website at iras.gov.sgBusinesses > Companies > Filing Taxes (Form C-S/ C) > Late Filing / Failure to File

f i ff i f ff


Tax must be paid within one month from the date of

Enforcement Actions for NonEnforcement Actions for Non--payment of Taxpayment of Tax

Tax must be paid within one month from the date of Notice of Assessment, even if you object to the assessment

Failure to pay on time will attract: 5% late payment penalty; 1% Additional penalty/month up to 12%; Agency appointment; L l ti t i d th Legal action to wind up the company.


Tax Filing ObligationsTax Filing Obligations-- PreparationPreparation ofof AccountsAccounts & Tax& TaxPreparation Preparation of of Accounts Accounts & Tax & Tax

ComputationComputation


i f & C ii f & C i


All i i d h f ll i

Preparation of Accounts & Tax ComputationPreparation of Accounts & Tax Computation

All companies are required to prepare the following:

Audited/ Unaudited Accounts

Detailed Profit and Loss Statement

Tax Computation and Supporting SchedulesYou may use the Basic Corporate Tax Calculator available on IRAS’ website at iras gov sgavailable on IRAS’ website at iras.gov.sg (Businesses > Companies > Working out Corporate Income Taxes > Basic Corporate Tax Calculator)


Type of Accounts to beType of Accounts to be Filed if CompanyFiled if Company


Type of Accounts to be Type of Accounts to be Filed if Company Filed if Company Qualifies for Qualifies for Audit ExemptionAudit Exemption

Audit Exemption (for financial years ending before 1 July 2015)

Under the Companies Act administered by the Accounting andCorporate Regulatory Authority (ACRA) the following are notCorporate Regulatory Authority (ACRA), the following are notrequired to have their accounts audited:

Dormant companiesDormant companiesExempt private companies (not more than 20 shareholdersand none is a corporation) with an annual revenue of notmore than $5 millionmore than $5 million




A dit E ti (f fi i l b i i ft 1 J l 2015 )

Type of Accounts to be Type of Accounts to be Filed if Company Filed if Company Qualifies for Qualifies for Audit ExemptionAudit ExemptionAudit Exemption (for financial years beginning on or after 1 July 2015 )

Under the Companies Act administered by the Accounting and Corporate RegulatoryAuthority (ACRA), the following are not required to have their accounts audited:

Dormant companiesSmall companies* which are

(a) private companies in the financial year in question; and (b) l 2 f 3 f ll f d f l(b) meet at least 2 of 3 following criteria for immediate past two consecutive financial years:

(i) total annual revenue ≤ $10m;(ii) total assets ≤ $10m;(ii) total assets ≤ $10m; (iii) no. of employees ≤ 50.

*For a company which is part of a group: (a) the company must qualify as a small company; and(a) the company must qualify as a small company; and(b) entire group must be a “small group” to qualify to the audit exemption.

For a group to be a small group, it must meet at least 2 of the 3 quantitative criteria on a consolidated basis for the immediate past two consecutive financial years.

Refer to ACRA’s website at acra gov sg


Refer to ACRAs website at acra.gov.sgLegislation > Companies Act Reform > More Details on Small Company Concept for Audit Exemption



Type of Accounts to be Type of Accounts to be Filed if Company Filed if Company Qualifies Qualifies for Audit Exemptionfor Audit Exemption

Company qualifies for audit exemption

Company chooses t t h t dit d

Company chooses t h t dit dornot to have accounts audited

Submit:• Accounts (including notes to accounts)

to have accounts audited

Submit:

• Audited accounts

or

Accounts (including notes to accounts)• Detailed Profit and Loss Statement• Directors’ report• Directors’ statement (P d i li ith C i

• Audited accounts• Detailed Profit and Loss

Statement

(Prepared in compliance with Companies Act)


T Fili Obli iT Fili Obli iTax Filing Obligations Tax Filing Obligations -- New CompaniesNew Companiespp


FormForm CC--SS ee--FilingFiling packagepackage willwill bebe issuedissued toto newnew companiescompanies22 ftft thth ff i tii ti


22 yearsyears afterafter thethe yearyear ofof incorporationincorporation

Fi i l T T T t ti ECI

Example 1: Incorporation date is 2 July 2013

Financial period

Tax return

YA 2014

Tax return

YA 2015

Tax computation ECI

2.7.13 to 31.12.13

(6 mths)Request

1 set - YA 2014 YA 2014(by 31.3.14)

2.7.13 to 31.3.14

(9 mths)

Not applicable

1 set - YA 2015 YA 2015(by 30.6.14)

( )

2.7.13 to 30.9.14

(15 mths)

Not applicable

2 Tax computations with tax return for YA 2015YA 2014 (2.7.13 to 30.9.13)

YA 2014 & YA 2015(by 31.12.14)(15 mths) YA 2014 (2.7.13 to 30.9.13)

YA 2015 (1.10.13 to 30.9.14)

(by 31.12.14)

IRAS will issue tax return


(You do not have to request)

Example 2:


Year of Incorporation

2014 2014

First financial In Year 2014 In Year 2015period ends (for financial period less than

or = 12 months)(for financial period exceeding 12 months)

First ECI YA 2015 to be filed within YAs 2015 & 2016 to be filed 3 months after financial period ended 2014

within 3 months after financial period ended 2015

First Income YA 2015 to be filed by YA 2016 to be filed by Tax Return 30 Nov 2015/ 15 Dec 2015 (if e-

File)30 Nov 2016/ 15 Dec 2016 (if e-File) with tax computations for YA 2015 and YA 2016

How to obtain Income Tax Return from IRAS

Request for YA 2015 return by submitting ‘Request for Income Tax Return (Form C-S/ C) Filing P k d N tifi ti f N

IRAS will automatically issue tax return for YA 2016 in year 2016

Package and Notification of New Financial Year End’ application

(Quick Links > Forms >


(Quick Links > Forms > Businesses > Corporate Tax forms)


New Companies with Accounts Covering More Than 12 p gMonths

e-Form C-S (two-column template for YA 2014 and YA 2015):e Form C S (two column template for YA 2014 and YA 2015):Not required to submit financial accounts, tax computations andsupporting schedules


T Fili Obli iT Fili Obli iTax Filing ObligationsTax Filing Obligations-- Using eUsing e--Services to ComplyServices to Complygg p yp y


Key Contact Points with IRASKey Contact Points with IRASCorporate Tax Obligations

Filing of ECI and FormR ti f and Form C‐S/ C

Checking on the status of returns and/

Requesting for copies of

correspondence or notices

Tax Agents contact

Applying for Waiver to

/or assessments

IRAS onApplying for Certificate of Residence (COR)

Submit Income Tax Return by a

Dormant Company

(COR)p y

Lodging of Objections PIC matters

For the convenience of taxpayers and tax agents, IRAS has


For the convenience of taxpayers and tax agents, IRAS has developed a suite of e-Services for their usage

Corporate Tax eCorporate Tax e--Services at mytax.iras.gov.sgServices at mytax.iras.gov.sg


pp y g gy g gType of e-servicesFiling e-Services • File Estimated Chargeable Income (ECI)

NEW!• File Income Tax Return (Form C-S/ C NEW!

, Dormant Company)

• Section 45 (Withholding Tax) e-Services

Obj t t / R i L d bj ti t th N ti f A tObject to/ Revise Assessment

• Lodge an objection to the Notice of Assessment or make amendments to the ECI and/ or Form C-S/ C filed

Application e-Services • PIC Cash Payout NEW!

• Certificate of Residence (COR)• Certificate of Residence (COR)• Waiver to Submit Income Tax Return by a Dormant

Company

Viewing Communications/ • View Correspondence/ Notices

Lodging of

Viewing Communications/ Status

View Correspondence/ Notices• View Return Status• View Donations• View Research & Development Allowance AccountLodging of

ObjectionsPayment e-Services • Payment via internet banking

Update Corporate Profile/ Contacts & Alerts

• Update company’s particulars, contact details and financial year end NEW!


y

159

© 2015 IRAS Singapore

Case Study Preparing a Tax Computation

for a Trading Company

160


ABC Trading Co Pte Ltd Tax ref no. 200112345A

Detailed Profit & Loss Statement for the Year Ended 31 December 2014

S$ Schedule Sales 422,376 Less: Cost of goods sold 71,025

Gross profit 351,351 Add: Other income Gain on sale of fixed assets 1,000 (x) Singapore dividend 5,000 1 Interest income 6,900 2 Rental income 40,000 3

404,251 Less: Operating expenses

Advertisement 1,000 Audit fee 2,200 Bank charges 50 Course fees ………………………………………………………………………. 1,540 4 CPF 12,000 Depreciation 1,000 (x) Directors’ fees 26,000 Donations ………………………………………………………………………… 1,000 5 Entertainment and gifts 14,215 Fines & penalties ……………………………………………………………… 1,000 6 Insurance 1,980 Medical expenses ……………………………………………………………. 8,060 7 Newspapers 176 Printing and stationery 388 Property tax (rental property) ……………………………………….… 7,000 8 Rental expenses (business premises) 30,126 Salaries, bonus and allowances 168,000 Secretarial fees 2,030 Staff welfare 160 Telephone 5,976 Transport 1,367 Travelling expenses 19,263 Upkeep of motor vehicles ………………………………………..……… 9,010 9 Upkeep of office equipment 6,205 Water & electricity 2,550

322,296

Net profit before tax 81,955

161


Additional Information from the Balance Sheet

Fixed assets addition Tables $600 Office cabinets $5,550 Computer $1,000 Laser printer $800 Accounting software $4,500 Renovation (wall covering) $2,450

Supporting Schedules

1. Singapore dividend Tax exempt (1‐tier) dividend:

Name of company Date of payment

Gross amount

Tax deducted

Net amount

Sand Holdings Ltd 15.8.14 $5,000 Nil $5,000

2. Interest income ‐ $6,900 Interest income received from fixed deposits placed with a Singapore bank.

3. Rental income ‐ $40,000 Rental income received from property at 555 Revenue Road for the period 1.1.14 to 31.12.14.

4. Course fees ‐ $1,540

Date of course Description Course fees External training:

1.4.14 Seminar on financial reporting standards $ 290 attended by accountant 1.7.14 Service excellence course attended by salesmen 1,250 1,540 Enhanced deduction under Productivity and Innovation Credit (PIC)

= $1,540 x 300% = $4,620

5. Donations ‐ $1,000

Date of receipt Name of institution Receipt no. Amount 1.1.14 Temple donation 5678 $ 520 30.6.14 National Council of Social Service 1234 480 * 1,000

* Donation to approved Institution of a Public Character (IPC) = $480 Deductible donation = $480 x 2.5 = $1,200

162


6. Fines & penalties ‐ $1,000 Late payment penalty paid to CPF Board.

7. Medical expenses ‐ $8,060

CPF $ 12,000 Salaries, bonus and allowances 168,000 Total 180,000

Company implemented the Portable Medical Benefits Scheme and met the qualifying conditions under the scheme.

Medical expenses disallowed = $8,060 ‐ (2% x $180,000) = $8,060 ‐ $3,600 = $4,460

8. Property tax ‐ $7,000 Property tax paid for rental property at 555 Revenue Road.

9. Upkeep of motor vehicles ‐ $9,010

Amount incurred on: SDJ 222 $ 5,000 (Disallowed)

GN 888 4,010 Total 9,010

10. Section 14Q deduction for renovation or refurbishment costs

Cost of wall covering $2,450 Section 14Q deduction = $2,450 / 3 years = $817 Company did not claim section 14Q deduction in previous years.

11. Capital allowances (CA)

Description of asset

Cost S$

100% Base CA

S$

300% Enhanced CA

S$

Total CA

S$

Tax written down value

S$

Tables 600 ^ 600 ‐ 600 Nil

Office cabinets 5,550 1,850($5,550 / 3 yrs)

‐ 1,850 3,700

Computer* 1,000 1,000 3,000 4,000 Nil

Laser printer* 800 800 2,400 3,200 Nil

Accounting software*

4,500 4,500 13,500 18,000 Nil

Total 8,750 18,900 27,650

* Prescribed in PIC IT and Automation Equipment list. ^ Low‐value asset (less than $5,000 each) qualifying for one‐year write‐off.

163


ABC Trading Co Pte Ltd Tax ref no. 200112345A

Income Tax Computation for Year of Assessment 2015 Basis Period: 1 Jan 2014 to 31 Dec 2014

S$

S$

Schedule

Net profit before tax as per accounts 81,955 P & L Less: Non‐taxable items Gain on sale of fixed assets 1,000 P & L Less: Separate sources of income Singapore dividend 5,000 P & L Interest income 6,900 P & L Rental income 40,000 52,900 P & L

29,055 Add: Disallowable expenses Depreciation 1,000 P & L Donations 1,000 P & L Fines & penalties 1,000 6 Medical expenses 4,460 7 Property tax 7,000 8 Upkeep of motor vehicles 5,000 9 Less: Course fees (enhanced deduction under PIC) 4,620 4 Section 14Q deduction for renovation or

refurbishment works 817

14,023 10

Adjusted profit before capital allowances 43,078 Less: Capital allowances for YA 2015 27,650 11

Adjusted profit after capital allowances 15,428 Add: Separate sources of income Singapore tax exempt (1‐tier) dividend 0 1 Interest income 6,900 2 Rental income 40,000 3 Less: Property tax 7,000 33,000 8

55,328 Less: Approved donation (2.5 times deduction) 1,200 5

Chargeable income before exempt amount 54,128 Less: Exempt amount First $10,000 @ 75% 7,500 Next $44,128 @ 50% 22,064 29,564

Chargeable income after exempt amount 24,564

164


S$ S$

Schedule

Tax @ 17% 4,175.88 Less: Corporate income tax (CIT) rebate

($4,175.88 x 30%)

1,252.76

Net tax payable 2,923.12

165


This page is intentionally left blank.


(B)How to Pay Your Tax(B)How to Pay Your Tax

Instalment Scheme for Companies

Under the law, income tax is due within one month after the service of the Notice of Assessment

As a concession companies can pay the estimated tax on their ECI byAs a concession, companies can pay the estimated tax on their ECI by instalments

A company must sign up for GIRO to enjoy paying its estimated tax by instalmentsinstalments

More instalments granted if ECI return is submitted early and filed electronically

Within 1 month from FYE

Within 2 monthsfrom FYE

Within 3 monthsfrom FYE

e-File 10 8 6e-File 10 8 6

Paper File 5 4 3


FYE: Financial year end

(C) How to Object to Your (C) How to Object to Your ( ) j( ) j

Notice of AssessmentNotice of Assessment


Objection & Appeal (O&A) ProcessObjection & Appeal (O&A) Process



1 • Objection 1 j

• Review2 • Review

Liti ti3 • Litigation

4 • Finalisation


Administrative Procedures to Administrative Procedures to



Assessment Litigation (Income Tax Board of

Obj ti

Review /Courts)

JudgmentNo AgreementObjection

Review

JudgmentNo Agreement

Review

Agreement / SettlementFi li dFinalised

Assessment Tax


Certainty




Objection Stage

Comptroller (CIT) issues a Notice of Assessment (NOA)

Usually accompanied by a tax computation or letter to explain tax adjustments made

If taxpayer agrees with NOA - no action is needed

If taxpayer disagrees with NOA - file objection

Note: Whether or not objecting to NOA, payment of tax must be d i hi h f d f Omade within 1 month from date of NOA





Objecting to an assessmentLimitation of right to object to an Amended Assessment [section 76(2A) of Income Tax Act]76(2A) of Income Tax Act] Ensure finalisation of assessment

Section 76(2A):Section 76(2A):If the objection is made to any assessment, being one which:

(a) is made on or after the date the Income Tax (Amendment) Act 2011 is published in the Gazette; and2011 is published in the Gazette; and

(b) amends a previous assessment in any particular,then a person’s right to object to the assessment is limited to a i h bj i h i fright to object against the assessment in respect of, or matters

relating to, that particular.


Administrative Procedures to Administrative Procedures to Objection & Appeal (O&A) ProcessObjection & Appeal (O&A) Process

Filing an Objection:

Taxpayer must file within 2 months from the date of NOA (administrative concession)

NOA will indicate the 2-month objection deadline





Objection StageObjection Stage

An objection should provide the following details:

Year of Assessment

Description of the item(s) under objection

Amount of income/deduction for each item under objection

Reason to explain why deduction/ allowance/ relief ought to be allowed

Reason why income should not be subject to tax

Supporting documents Note: CIT may request revised income tax computation as it will help expedite the

review process


review process


Filing an ObjectionFiling an Objection

Acknowledgement of an Objection via:

Obj ti t t i Recommended! I t te-Objection at mytax.iras.gov.sg Recommended! – Instant acknowledgement

Objection Form – acknowledgement within 14 days from date ofObjection Form acknowledgement within 14 days from date of receipt of Objection Form

Letter – no acknowledgement will be issuedg

Note:Both e-objection & Objection Form include a list of questions which assists taxpayer to

t i h th bj ti fil d i lid th iascertain whether an objection filed is valid or otherwiseTaxpayers/ Tax agents are encouraged to file objections via e-Objection or Objection Form



R i SReview Stage

CIT - to review taxpayer’s objection and convey its decision on the tax issue under dispute within 6 months from the date of receipt oftax issue under dispute within 6 months from the date of receipt of complete information from TP

Taxpayer - has 3 months from the date of CIT’s letter to decide whether to accept CIT’s position (re: decision on tax issue under dispute)





R i SReview Stage

To ensure closure of an objection, Notice of Refusal to Amend (IR 23) will be issued when:

Taxpayer does not reply to CIT’s decision on the tax issue p y p yunder dispute

Taxpayer’s agreement to CIT’s decision is qualified Taxpayer s agreement to CIT s decision is qualified

Taxpayer does not provide information after 2 years from date of receipt of objectionof receipt of objection

Note: CIT has adequate guidelines/ internal procedures to ensure Notice of Refusal to Amend are issued judiciously (eg. reminders will be sent to taxpayer before i i th N ti f R f l t A d)


issuing the Notice of Refusal to Amend)




Li i i SLitigation Stage

Once Notice of Refusal to Amend (IR 23) is issued, taxpayer has the option to:

Drop the objectionp j

Pursue objection at: Income Tax Board of Review (ITBR) Income Tax Board of Review (ITBR) High Court Court of Appeal

(in specified order)(in specified order)

Taxpayer must lodge the Notice of Appeal within 30 days from the date of IR 23 should he wish to appeal to ITBR


date of IR 23 should he wish to appeal to ITBR




Fi li i SFinalisation Stage

Assessment is final and conclusive when:

Assessment has been made and agreed by taxpayer

No valid objection is filed within the statutory time limit or such extension of time allowed

No Notice of Appeal has been filed with Income Tax Board of Review or High Court, as the case may be, within the statutory time limitstatutory time limit

An assessment has been determined on appeal


Administrative Procedures to Administrative Procedures to Obj ti & A l (O&A) PObj ti & A l (O&A) P


Objection & Appeal (O&A) ProcessObjection & Appeal (O&A) ProcessKey Points to Note

• 2 months from date of NOAExtended Objection deadline

• Issued for objections filed via e-Objection or Objection FormAcknowledgement

• Within 6 months from date of receipt of complete information (exception: complex cases)

CIT’s response

• Within 3 months from date of CIT’s letter (re: decision on tax issue under dispute)

Taxpayer’s response

• Issued under specific circumstances• CIT will send a final reminder to taxpayer before

issuing Notice of Refusal to Amend

Notice of Refusal to Amend (IR 23)


(D) Wh t t d if Di E i(D) Wh t t d if Di E i(D) What to do if you Discover Errors in (D) What to do if you Discover Errors in Your Tax DeclarationYour Tax Declaration-- IRAS’ Voluntary Disclosure IRAS’ Voluntary Disclosure

ProgrammeProgramme (VDP)(VDP)ProgrammeProgramme (VDP)(VDP)


IRAS Voluntary Disclosure Programme (VDP)IRAS Voluntary Disclosure Programme (VDP)


y g ( )y g ( )

• Aims to encourage taxpayers that have made errors in their tax returns to voluntarily come forward to correct their errors and set their tax matters right, in exchange for reduced penalties

• Applicable to Individual Income Tax

Overview of VDP- Individual Income Tax - Corporate Income Tax - Goods and Services Tax (GST) - Withholding Tax g- Stamp Duty

• Voluntary disclosure must be timely, accurate, l t d lf i iti t d b tcomplete and self-initiated by taxpayer;

• Cooperate fully with IRAS to correct the errors made; and

• Pay or make arrangements with IRAS to payQualifying Conditions

• Pay or make arrangements with IRAS to pay additional taxes and penalties imposed (if any), and honour such arrangements till all payments are made.





Voluntary Disclosure d

Penalty TreatmentMade

Within 1 year from statutory filing date

No penalty imposed

Reducedl i

> 1 year from statutory filing date

Reduced penalty of:• 5% p.a. for Income Tax*• Flat 5% for GST andPenalties • Flat 5% for GST and

Withholding Tax

* For Income Tax, reduced penalty is 5% of tax undercharged for, p y geach year that income was late in being brought to tax.

Stamp Duty: For a voluntary disclosure pertaining to late stamping or underpayment of Stamp Duty that meets the

l f d d ' l lqualifying conditions under IRAS' Voluntary Disclosure Programme, the reduced penalty is 5% p.a. computed on a daily basis on the stamp duty payable. There is no grace period applicable to Stamp Duty.


Refer to IRAS website for more information on VDP:Home > Businesses > Companies > Getting it Right > Voluntary Disclosure of Errors for Reduced Penalties

(E) Record Keeping Requirements(E) Record Keeping RequirementsBenefits of Keeping Proper RecordsBenefits of Keeping Proper Records

• Better internal control of your business

1

• Better internal control of your business• Better financial management > Better business management

> Higher profitability

• Better able to detect business losses, internal fraud

2,

and theft

3• Easier and faster to file tax returns and deal with

IRAS’ queries, if required3 q , q



Keeping Proper RecordsKeeping Proper Records

• E.g. Receipts, invoices or vouchers

p g pp g p

Source Documents

invoices or vouchers issued/received

• Delivery notes• Credit/Debit notes

Bank Statements

/• Import/Export

documents

• E.g. General ledgerKeeping g g• Debtors and

creditors ledgers• Purchase and

sales books

p gProper Records

Accounting Records

sales books• Cash books and

other accounts books• E.g. Business

t t • Sales listings/records of daily takings

• Financial statements e.g. Balance Sheet,

Any Other Business Records

contracts• Notes of Board

meetings/Audit Committee


e.g. Balance Sheet, Profit & Loss statement

meetings

Keeping Proper RecordsKeeping Proper Records


Keeping Proper RecordsKeeping Proper RecordsAll business transactions must be supported by source documentsdocuments

Manual Records Electronic Records

Records of business Records of business transactions using computer softwaretransactions in

physical formcomputer software

(including accounting


software)


Record Keeping requirementsRecord Keeping requirements

• At least 5 years for financial periods ending on or after 1 Jan 2007 e g

Regardless of whether assessment is finalised, records have to be kept and retained for:

• At least 5 years for financial periods ending on or after 1 Jan 2007 e.g. Records for period 1 Jul 2013 to 30 Jun 2014 (YA 2015) should be kept up to 31 Dec 2019

• At least 7 years for financial periods ending before 1 Jan 2007y p g

Records cannot be discarded even if Notice of Assessment is receivedreceived

IRAS may request records for verification purposes



Record Keeping requirementsRecord Keeping requirements

Estimates of income and expenses are not acceptable for tax purposes

• Fined up to $1,000 per Year of Assessment

Failure to keep proper records:

p , p• Imprisoned for up to 6 months


R dR d K i TiK i Ti


From the start of your business, set up a good filing

RecordRecord--Keeping TipsKeeping Tips

From the start of your business, set up a good filing system for your paperwork

Obtain source documents at the point of transaction

Record business transactions accurately and regularly

d b l fBe sure to record business expenses separately from personal expenses

Make sure records can be understood by anyone


Need Help with Record Keeping?Need Help with Record Keeping?


Need Help with Record Keeping?Need Help with Record Keeping?

Record Keeping Self-Assessment Toolkit

Easy-to-use toolkit to help you self-assess your record keeping

standard

Easy-to-understand tips for improvement

Go to IRAS’ website at iras.gov.sg (Business > Learning the Basics of Corporate Income Tax > Business Records That Businesses Must Keep)Records That Businesses Must Keep)


(F) Keeping Your Company’s Particulars Up(F) Keeping Your Company’s Particulars Up--ToTo--DateDateCorporate Tax Obligations

Particulars that must be kept up-to-date:

Update Corporate Profile/ Contacts & Alerts New!Update Corporate Profile/ Contacts & Alerts New!

Business activity (i.e. SSIC Code)

Add f th C ’ i t d ffiAddress of the Company’s registered office

Company’s financial year end (FYE)

Why is it important to keep these details up-to-date?

Business activity (i.e. SSIC Code) may be used for tax assessment purposes.

All Forms and Notices will be sent to the company’s registered office

IRAS’ record of your company’s FYE can affect:

– Our record of your ECI due date

– Our record of whether the company can be accorded the


Our record of whether the company can be accorded the Tax Exemption for New Start-Up Companies

How to change your Company’s particularsHow to change your Company’s particulars


Update Corporate Profile/ Contacts & Alerts/ Financial Year End

How to change your Company s particularsHow to change your Company s particulars

p p

• Company’s staff or tax agent who have been authorised with an ‘Approver’ role can also update the company’s: contact details (i.e. name of contact person, telephone number and

email address), and financial year end New! financial year end

• The contact details and financial year end will be updated immediately upon successful submission

• View the companies’ particulars and contact details (e g company’s status• View the companies particulars and contact details (e.g. company s status, registered office address, financial year end and telephone number) at mytax.iras.gov.sg

For new companiesUpdate your financial year end if it is not 31 Dec


C ’ B i A ti it (i SSIC C d )C ’ B i A ti it (i SSIC C d )


Company’s Business Activity (i.e. SSIC Code)Company’s Business Activity (i.e. SSIC Code)

If the company ‘s principal activity has changed such that its businessIf the company s principal activity has changed such that its business activity (i.e. SSIC Code ) is different from that provided to ACRA at the point of incorporation, please:

• Inform ACRA via www.bizfile.gov.sg on the change of the company’s particulars

• Email IRAS at [email protected] to inform us the company’s new business activity and the effective date of change


C ’ R i t d AddC ’ R i t d Add


Company’s Registered AddressCompany’s Registered AddressView your address at the e-Service “Corporate Profile / Contacts & Ale ts” t m t i go g& Alerts” at mytax.iras.gov.sg

If the address is not that of your company’s registered office, you will need to:

• Inform ACRA via www.bizfile.gov.sg on the change of the company’s particulars. There is no need to inform IRAS separately

• For urgent updating by IRAS, fax or email us ([email protected])the details:

Company’s tax reference number; Company s tax reference number;

Company’s name; and

Company’s new address that has been updated with ACRA


OthersOthersOthersOthers

A. Budget 2015 HighlightsA. Budget 2015 Highlights

B. Wage Credit SchemeB. Wage Credit Scheme

C Q & AC Q & AC. Q & AC. Q & A


(A) Summary of Budget 2015 Changes(A) Summary of Budget 2015 Changes

Tax Changes SummaryExpiry of PIC Bonus The PIC Bonus will expire in YA 2015

Expansion of “PIC IT and Automation Equipment List”

With effect from YA 2015, the List is expanded to include Waste management equipment

Enhancement and Extension of Tax Deduction for Donations

300% deduction for qualifying donations made from 1 Jan 2015 to 31 Dec 2015

250% deduction extended for qualifying donations made from 1 Jan 2016 to 31 Dec 20181 Jan 2016 to 31 Dec 2018

Extension of the Wage Credit Scheme (WCS)

Extend WCS for 2 years (i.e. 2016 & 2017) Lower co-funding rate of 20% for wage increases given in 2016

and 2017 Wage increases given in 2015 that are sustained in 2016 and

2017 will be co-funded until 2017

Corporate Income Tax Extended for 2 years (i.e. 2016 & 2017)rebate (YA 2016 and 2017)

30% rebate on corporate tax payable (except final withholding tax on income)

Subject to cap of $20,000 per YA


Assistance and Service ChannelsAssistance and Service Channels

Website • Home > Businesses > CompaniesHome > News & Events > Budget 2015 OverviewWebsite

iras.gov.sg• Home > News & Events > Budget 2015 – Overview

of Tax Changes

• [email protected] for general tax matters• [email protected] for payment matters

i dit@i f P d ti it d I tiEmailEmail • [email protected] for Productivity and Innovation

Credit

aEmail

• For companies: 1800-356-8622• 8.00am to 5.00pm from Mondays to Fridays

• Best time to call: 8.30am – 10.30amHelpline

• Best day to call: Friday


Please complete our online Feedback Form here after the seminar:https://www.iras.gov.sg/irashome/Feedback/Feedback-Form-Company-s-Tax-Obligations-Seminar-2015/

Your feedback will assist us in planning and organising our future seminarsYour feedback will assist us in planning and organising our future seminars. This information aims to provide a better general understanding of IRAS’ practices and is not intended tocomprehensively address all possible tax issues that may arise. This information is correct as 7 July 2015.While every effort has been made to ensure that this information is consistent with existing law and practice,should there be any changes IRAS reserves the right to vary our position accordingly


should there be any changes, IRAS reserves the right to vary our position accordingly.

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