The corporate tax filing deadline is different from the personal income tax filing deadline. The corporate tax filing deadline for Year of Assessment (YA) 2020 is 15th December and the deadline for YA2021 onwards is 30th November. Do note that dormant companies are required to file their Corporate Income Tax Returns unless it has been granted a waiver of Corporate Income Tax Return submission.

The Inland Revenue Authority of Singapore (IRAS) may take the following actions if companies fail to file their Corporate Income Tax Returns before the due date:

  1. IRAS may issue an estimated Notice of Assessment (NOA). The company must pay the tax based on the estimated NOA within a month;
  2. IRAS may offer to compound the offence with a composition fine not exceeding SGD$1,000;
  3. IRAS may issue a notice based on Section 65B(3) of the Income Tax Act to the director of the company, requiring the director to submit the required information in Form C or Form C-S to IRAS;
  4. IRAS may summon the company or person responsible for the running of the company (including the directors) to Court.

 

Estimated Notice of Assessment (NOA)

The estimated NOA may be based on the company’s past years’ income or information that is available to IRAS. If a company receives an estimated NOA, it must make payment on the tax based on the estimated amount even if it intends to object to the estimated NOA. There will be penalties for late payment.

The company can file an objection to the assessment within two months from the date of the estimated NOA. In the objection filing, the company must submit its Form C-S or Form C together with its financial statements and tax computation. Do note that payment on the tax based on the estimated NOA needs to be paid even if the company is waiting for the outcome of the objection. Upon revision of the estimated assessment, any excess tax paid will be refunded.

 

Composition Offer

If a company fails to file its Form C-S or Form C with financial statements and tax computation before the due date, IRAS may choose to offer to compound the offence rather than to take prosecution actions. The composition amount ranges from SGD$200 to SGD$1,000 depending on the company’s past filing and payment records.

The company will need to pay the composition amount and file the overdue tax returns and documents to IRAS to settle the tax offence. IRAS may take legal action against the company if it does not accept the offer to compound the offence.

 

Notice to Director for Information Under Section 65B(3) of the Income Tax Act

IRAS may issue a notice to the director pursuant to Section 65B(3) of the Income Tax Act. The director is required by the act to provide the information requested before the due date stated in the notice to avoid being summoned to Court.

A company director convicted for failure to comply to Section 65B(3) could face a fine of up to $10,000 or imprisonment of up to 12 months or both.

 

Court Summons

A summons may be issued to the company and/or the director to attend Court on a specified date if IRAS does not receive:

  1. The required tax return and/or documents before the due date; and/or
  2. Payment of the composition amount before the due date.

If the company and/or directors do not wish to attend Court, the company should take the following actions at least one week before the Court date:

  1. File the outstanding tax return and/or documents; and
  2. Pay the composition amount.

Failure to attend Court will result in further legal actions taken against the company (for example, a warrant of arrest may be issued).

In Court, the company representative/director will have to take a plea after the charges are read. Upon conviction, the company may face a fine of up to $1,000.

A company director convicted for failure to comply to Section 65B(3) could face a fine of up to $10,000 or imprisonment of up to 12 months or both.

The company must still file the outstanding documents, failing which further legal actions may be taken.

 

Failure to file Corporate Income Tax Returns for two or more years

If a company fails to file its Corporate Income Tax Returns for two or more years, it may be issued with a summons to attend Court. Upon conviction, the company may be ordered by the Court to pay:

  1. A penalty that is twice the amount of tax assessed; and
  2. A fine of up to SGD$1,000.

 

Do note that Corporate Tax Filing is a mandatory requirement and all company directors or people in charge of the company must comply with this requirement.

If you are a company owner or director and require assistance with your corporate tax filing, you can contact us at [email protected].

 

When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.

Yours Sincerely,
The editorial team at Singapore Secretary Services

For more useful articles and videos, visit the Singapore Secretary Services resource page.
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