Tag: Income tax filing

IRAS publishes rules for filing income tax computations in non-S$ functional currencies

On By taxsgIn Corporate Tax

4 March 2016

On 26 February 2016, the Inland Revenue Authority of Singapore (IRAS) issued new content on its website covering the filing of income tax computations in non-Singapore dollars (S$) functional currencies.

The Financial Reporting Standards of Singapore (FRS) requires companies to present their financial statements in the functional currency i.e. currency of the primary economic environment in which a business operates.

The general rules on filing of income tax computations in non-S$ functional currencies are as follows:

  • For companies, all items in their tax computations up to the chargeable income should be in their non-S$ functional currencies;
  • For partnerships, all items in their computations up to the distributable profit / loss, as well as the CA claimed, should be in their non-S$ functional currencies; and
  • For sole proprietors, all items in their tax computations up to the adjusted profit / loss (but before any loss brought forward), as well as the CA for that trade or business, should be in their non-S$ functional currencies.

All amounts declared in the Income Tax Return (Form C-S/C) and the appendices, however, must be in Singapore dollars. Those companies with their financial statements and tax computations in non-S$ functional currencies will be required to translate the relevant non-S$ items into S$ equivalent amounts using the average rate.

Should there be a change in functional currency from S$ to non-S$ (i.e. financial statements and tax computations for previous YAs were prepared in S$), transitional rules to translate existing S$ balances into the non-S$ functional currency will apply (see paragraphs 5.1 to 5.7 of the e-Tax Guide, “Filing of income tax computations in functional currencies other than Singapore dollars”).

IRAS has also outlined the translation methods of specific items in the tax computation. For more details, see paragraphs 5.8 to 5.28 of the e-Tax Guide, “Filing of Income Tax Computations in functional currencies other than Singapore Dollars”.

For further details, please refer to the IRAS website.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg for more information.

Clarification by the IRAS on the Income Tax filing process

On By taxsgIn General News

29 March 2013

The IRAS has provided clarifications in response to certain queries raised by a member of the public regarding the income tax filing process. The clarifications apply to taxpayers who have not qualified for the No-Filing Service (NFS) and are as follows:

1. Does one needs to submit a tax return or pay taxes if his annual salary does not exceed $20,000?

All taxpayers who have received a letter or SMS notification from IRAS to file a tax return should still do so, even if their income falls below this threshold. Such letters or notifications could be triggered by anomalies that exclude them from the NFS, such as an erroneous entry in the employer’s return.

2. Why has the phone filing service had been discontinued?

The phone filing service was discontinued since 2010 as it was uneconomical to continue providing the service given its low usage. In 2012, 97% of taxpayers who filed their tax returns did so electronically. Until 14 Apr 2013, taxpayers who are unfamiliar with e-Filing may call 1800 356 8300 or visit one of the 23 island-wide community centres on weekend afternoons between 2pm – 6pm for assistance.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website.

Tax Return filing for 2013

On By taxsgIn Reminders

5 March 2013

Taxpayers, including sole proprietors and partners, are reminded that their income tax returns need to be filed by 18 April 2013 (online) or 15 April 2013(for paper returns) unless they have been informed by the IRAS of their eligibility for No-Filing Service (NFS).

Taxpayers eligible for NFS this year will not need to file a tax return, unless they have additional income to declare or changes to make to their personal reliefs.

As announced in the 2013 Budget Speech, all individuals who are tax resident in Singapore will enjoy a personal income tax rebate of 30% (if aged below 60 years) and 50% (if aged 60 years and above) for the Year of Assessment 2013. This rebate will be applied automatically to the eligible taxpayer’s tax bill.

Source: This article was extracted from the Inland Revenue Authority of Singapore (IRAS) website. Visit http://www.iras.gov.sg for more information.