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18
sp E C iA l
Waiver of eci Filing
and Form c-s for small
companies
Simplifying Tax Filing for Taxpayers,
Facilitating a Pro-Business Environment &
Raising Productivity
IRAS has recently announced two new initiatives that will
simplify income tax filing for small companies with an annual
turnover not exceeding $1 million. These initiatives will
help qualifying companies reduce their compliance costs and
improve their overall productivity and efficiency.
The first initiative --- Waiver of ECI Filing for Small
Companies with NIL Estimated Chargeable Income
(ECI). Currently, all companies have to file an estimate of their
chargeable income (nil or otherwise) within 3 months after the
end of their accounting period.
Soon, small companies will not be required to file their ECI if
it is estimated to be nil. In other words, they save one step in
their overall filing process and can channel their time and efforts
towards preparing for annual income tax reporting. This change
will take effect from Year of Assessment 2013 for companies
with accounting year ending October 2012 or after.
The second initiative is the Simplified Income Tax Return,
Form C-S, for smaller companies. Currently, all companies
report their income using Form C, a 7-page Income Tax
Return. They also have to send in their financial accounts and
tax computations.
Ju l | Au g 2012
En t r E p r E n E u r s’ Di g E s t
F ORM
Simplified Tax Filing for C ompanies
Smaller companies, especially those that do not engage tax
agents, may find it time-consuming to complete Form C. These
smaller companies tend to have less complex transactions,
fewer tax claims and fewer tax adjustments compared to larger
companies. From this year, the Year of Assessment 2012,
small companies with an annual turnover not exceeding S$ 1
million will find tax filing much faster and easier with the new
Form C-S.
These smaller companies need only provide the following
information in the 3-page Form C-S:
• A declaration statement that the company is eligible for
Form C-S filing;
• Information on tax adjustments; and
• Information from the financial accounts