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Overview of Presentation
1. Scope of Tax 2. Basis of Assessment 3. Enhanced Partial Tax Exemption Scheme 4. Enhanced Tax Exemption Scheme for New Start-Up Companies 5. 6. 7. 8. General Filing Requirements Statutory Record Keeping Requirement Introduction to the Basic Tax Calculator Corporate Tax e-Services
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Scope of Tax
Income tax payable on:
Income accruing in or derived from Singapore (i.e. income sourced in Singapore) E.g. trade income of company carrying on business in Singapore Income received in Singapore from outside Singapore (i.e. foreign income received in Singapore) E.g. interest income from a foreign bank outside Singapore that is received in Singapore
Basis of Assessment
Income is assessed on a preceding year basis Year of assessment (YA) Year in which income tax is charged Current YA is YA 2008 Basis period for a YA Period of income relevant to the YA
Basis of Assessment
Trade / business income Basis period for a YA Example YA 2008 basis period for a June year-end company Accounting period preceding the YA Passive nontrade income Calendar year preceding the YA
With effect from 1 Jan 2008 (YA 2009), all income whether trade or non-trade, will be assessed on accounting year basis.
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Corporate Tax
Payable on Chargeable Income (after Exempt Amount) YA 2008 : 18%
Example
1. 1. 07
31.12.07 31.12.08
31.12.09
31.12.10
31.12.11 31.12.12
YA 2011 onwards
Partial exemption
Claiming tax exemption under tax exemption scheme for new start-up companies declaration required
Income Tax Return (Form C) All companies are required to submit Form C Claiming tax exemption under tax exemption scheme for new start-up companies declaration required Dormant: NIL return required Due date for filing Form C for YA 2008 is 30 Nov 2008 Failure to submit tax return by filing due date Enforcement action
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Complete Tax Return (contd) Tax computation with supporting schedules, showing how chargeable income and tax payable is arrived at Type of accounts to be filed depends on how the financial statements have been filed with ACRA
full set in XBRL format - File detailed profit and loss account with IRAS partial set in XBRL format or not in XBRL format - File full set of accounts with IRAS
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Audit Exemption
Under the Companies Act administered by the Accounting and Corporate Regulatory Authority (ACRA), the following companies are not required to have their accounts audited :
Dormant companies Exempt private companies with an annual revenue of not more than $5 million.
Submit: Accounts (including notes to accounts) Directors report Directors statement prepared in accordance with Companies Act.
Statutory Requirements
Payment of Tax - Within 1 month from date of notice, whether or not objecting to assessment - Failure to comply penalties late payment
Objection to Notice of Assessment - Must be lodged in writing within 30 days from date of notice - State precise grounds of objection
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YA 2007
Statutory filing deadline 31 July (YA 2007 is last YA in which extension will be granted)
Preview
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Launch
Case Study Pte Ltd Income Tax Computation for the Year of Assessment 2008 Basis Period: 01.09.2006 to 31.08.2007 S$ S$ Net Profit as per audited accounts 80,600 Non taxable items 1,000 Gain on sale of fixed assets 79,600 Separate source of income Interest Income 11,900 Rental Income 51,900 40,000 27,700 Disallowable expenses Depreciation 1,000 Donations 1,000 Fines penalties & 1,000 Medical expenses 6,000 Property tax 7,000 Upkeep of motor vehicles 5,000 21,000 Adjusted profit before capital allowance 48,700
Cont
Case Study Pte Ltd Income Tax Computation for the Year of Assessment 2008 Basis Period: 01.09.2006 to 31.08.2007 Adjusted profit before capital allowance Capital allowance S19 IA S19AA S19A(1) AA S19A(2) AA Adjusted profit after capital allowance Separate source of income Interest Rental Less: Property tax Donations (Double deduction) Chargeable Income before exempt amount Exempt amount (see notes) First $10,000 @ 75% Next $72,800 @ 50% ($82,800 - $10,000) Chargeable Income after exempt amount Tax @ 18% 3,600 2,400 300 3,300 48,700 Sch 11 9,600 39,100 11,900 33,000 84,000 1,200 82,800 43,900 38,900 7,002.00 Sch 2 Sch 3 Sch 8 Sch 5
What is EASY?
e-Services Authorisation System Allows organisation to authorise - Own staff; or - Third party To access IRAS e-Services (i.e. CT, GST & e-Tax Clearance) and other government agencies eServices (i.e. JTC e-services) on its behalf When an organisation authorises a third party, the third party will also use EASY to authorise its own staff to perform e-services for this organisation
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Overview of EASY
IRAS issues different Access Code
Tax Agent Firm (TA) Access Code handled by appointed EASY Administrator Authorisation of staff via EASY TA Staff Using SingPass or IRAS PIN
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