1. The Inland Revenue Authority of Singapore (IRAS) reminds companies to file their Corporate Income Tax (CIT) Returns by the statutory due date of 30 Nov 2024.
2. IRAS has observed that each year, about 1 in 10 companies fail to comply with its CIT filing obligations despite repeated reminders. In 2023, over 4,700 companies were prosecuted for late or non-filing of tax returns. The total penalties for late or non-filing of tax returns exceeded $4.9 million.
3. Companies that do not file their Corporate Income Tax (CIT) Returns by the due date can be fined up to $5,000. Depending on factors such as the company’s past compliance records, IRAS may compound the offence instead of taking prosecution actions. A company that receives a letter of composition must pay the composition amount and file the overdue tax return, failing which it will be issued a Notice to Attend Court.
4. Errant companies that fail to file their Corporate Income Tax (CIT) Returns for 2 years or more may be ordered by the courts to pay a penalty twice the amount of tax assessed, in addition to the fine.
5. For companies that do not file their Corporate Income Tax (CIT) Returns, IRAS may issue notices to the company directors to request the company’s financial information. Company directors who fail to furnish the information by the stipulated date will be subject to heavier penalties of up to $10,000 or court attendance.
6. IRAS had estimated that about 262,000 companies are expected to file Corporate Income Tax (CIT) Returns this year. All companies, including those with no business activities or those in a loss position, are required to file their Year of Assessment (YA) 2024 Corporate Income Tax (CIT) Returns by 30 Nov 2024.
7. To avoid any last-minute rush, we always advised our clients to prepare their financial statements, tax computations, and supporting documents well in advance. Preparing and filing tax returns ahead of the deadline not only help to avoid unnecessary fines but also can help companies with ample time to review the documents, reducing the likelihood of mistakes.
8. Contact us if you require assistance on the Corporate Income Tax (CIT) Returns filing. At PL Biz Consulting Pte Ltd, we have the right people and expertise to help guide and explain to you on how to go about filing your Corporate Income Tax Returns.
