Simplified tax procedures could make Singapore an even easier place to do business

Two simplified tax procedures were introduced by the Inland Revenue Authority of Singapore (IRAS) for companies with a turnover less than S$1M (US$800k), making it easier for them to file taxes, according to GuideMeSingapore.com.

Currently, all Singapore companies, including those with no taxable income, must file their Estimated Chargeable Income form and Income Tax Return using Form C within three months of the end of their fiscal year.

Effective Year of Assessment 2013, companies with turnover under S$$1M will not be required to file the ECI, benefiting 67,000 companies, or 42 percent of all companies.

EYA 2012, they will also only be required to file a simple Form C-S instead of Form C. This will help 110,000 companies, or 70 percent of all firms.

“IRAS firmly believes that the two initiatives will result in a significant reduction in time and effort spent on tax filing for smaller companies, thereby helping to improve their productivity and leading to greater efficiency for the tax system as a whole,” says Moses Lee, Singapore’s Commissioner of Inland Revenue.

Singapore has been ranked by numerous studies as one of the easiest places in the world to do business. These include studies by NatWest International, Cities of Opportunity, Global Innovation Report, and Global Competitiveness Report.

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