Corporate tax filing can be a tedious and complicated process for small businesses in Singapore. With so many different forms and requirements, it can be challenging to know which forms to fill out and when to submit them. However, one form that small businesses in Singapore should be aware of is Form C-S Lite. In this article, we will explain what Form C-S Lite is and how small businesses in Singapore can file their corporate taxes using it.
What is Form C-S Lite?
Form C-S Lite is a simplified version of the Corporate Income Tax Return (Form C) in Singapore. This form is designed for small businesses with annual revenue of SGD 200,000 or less, who meet specific qualifying conditions. The purpose of Form C-S Lite is to simplify the tax filing process for small businesses by reducing the number of tax computations and financial statements required.
Qualifying Conditions for Form C-S Lite
To qualify for Form C-S Lite, small businesses in Singapore must meet the following conditions:
Revenue subject to 17% Corporate Income Tax Rate
Small businesses in Singapore that have revenue subject to the 17% Corporate Income Tax Rate are eligible to file their corporate taxes using Form C-S Lite.
Not claiming foreign tax credit, investment allowance, group relief, or carry-back of current year’s capital allowances/losses
Small businesses in Singapore that are not claiming foreign tax credit, investment allowance, group relief, or carry-back of current year’s capital allowances/losses are eligible to file their corporate taxes using Form C-S Lite.
How to File Corporate Taxes in Singapore with Form C-S Lite
If your small business in Singapore meets the qualifying conditions for Form C-S Lite, you can file your corporate taxes using this form. Here is how to do it:
Prepare the necessary documents
Before filing your corporate taxes using Form C-S Lite, you will need to prepare the necessary documents. These documents include the financial statements for the year of assessment, which should include the profit and loss statement, balance sheet, and cash flow statement. You will also need to prepare a statement of tax adjustments, which should include any adjustments made to the taxable income, such as capital allowances, donations, and losses carried forward.
Fill out the Form C-S Lite
The first thing you need to do is to amend the pre-filled financial period if it is incorrect. You can do so by clicking on Part B. If you need to make any changes, click on the “Save Draft” option to save a copy of the form on the portal, and you can continue e-filing anytime before the due date.
After that, you need to complete the line items for two years of assessment if the first set of financial statements covers a period of more than 12 months or if there is a change in the company’s financial year end.
All the amount fields in Part B of Form C-S are pre-filled with ‘0’. Please enter the correct amount if it is not ‘0’. The following fields will be pre-filled based on information available with IRAS:
- Unutilised Capital Allowances b/f
- Unutilised Losses b/f
- Unutilised Donations b/f
- Current Year Donations
If any of the pre-filled amounts differs from the company’s record, you can revise the amount in the corresponding Company’s Declaration box.
You cannot make any upward adjustments unless the company adopts a non-S$ functional currency. If you want to view the details of donations made to approved Institutions of a Public Character (IPCs), you can click on the View Donations hyperlink.
Once you have completed Part B, click on Part C. With effect from YA 2021, the ‘Revenue’ field will be pre-filled based on the amount entered at the ‘Form Type Selection’ page. You can revise the amount in this box. All the other amount fields in Part C of Form C-S are pre-filled with ‘0’. Please enter the correct amount if it is not ‘0’.
Finally, at the bottom of Part C, click on the Confirmation Page to complete the filing process.
Submit the Form C-S Lite
Once you have filled out the Form C-S Lite and prepared the necessary documents, you can submit the form via the IRAS website. To do so, you will need to authorize someone to file the form on behalf of your small business, and you will need a Singpass account to do so. The deadline for submitting corporate taxes is usually 30th November each year.
Benefits of Filing Corporate Taxes Using Form C-S Lite
Filing your corporate taxes using Form C-S Lite has several benefits for small businesses in Singapore, including:
Simplified tax filing process
Form C-S Lite is designed to simplify the tax filing process for small businesses in Singapore. By reducing the number of tax computations and financial statements required, Form C-S Lite makes it easier for small businesses to file their corporate taxes.
Faster processing time
Filing your corporate taxes using Form C-S Lite can result in faster processing time, as the form is simpler and requires fewer documents. This means that you may receive your tax assessment more quickly, allowing you to plan your finances more