Tax Services

Save time and money by allowing S C Mohan PAC to handle your tax needs. We help clients to quickly resolve issues, stay compliant and protect their bottom line year-round. Most importantly, they can run their business with the peace of mind that S C Mohan PAC, their tax and business advisor is there for them.

We provide a full spectrum of tax services/solutions to help you minimise your tax burden while staying in compliance with reporting regulations.

Tax Compliance Services

We work directly with our clients to minimise tax liabilities and ensure compliance with changing local tax policy.

Some of the areas in which we can support your tax needs include:

  • Tax compliance review for companies, partnerships, sole proprietors, clubs, associations, MCST, individuals 
  • Preparation of tax computation and filing of corporate and individual income tax returns with IRAS
  • Preparation of draft tax computation based on management accounts for purpose of filing the estimated chargeable income
  • Tax objections and appeals in respect of disputes on tax assessed / filing objection to IRAS on tax assessment
  • Assisting with IRAS queries on tax issues
  • Advisory on withholding tax matters and e-filing of withholding tax form
  • Application for Certificate of Residence (COR)

Tax Advisory 

We help develop client-specific tax planning strategies that align with specific individual and corporate goals. Our combined team of specialists will identify specific business issues, anticipate all impacted areas and tailor solutions accordingly. Feel free to discover the many ways we can assist you:

  • IRAS audit / investigation
  • Transfer pricing  
  • Tax negotiation and tax settlement
  • Tax planning (corporate/individual)
  • Cross border transactions/structuring
  • Corporate tax advisory, planning, review and restructuring

Basis period and Year of Assessment

A company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2019 will be taxed in 2020.

To assess the amount of tax, IRAS looks at the income, expenses, etc. during the financial year. 

This financial year is known as the "basis period".

The basis period is generally a 12-month period preceding the YA.

Examples based on different Financial Year Ends

Financial Year End Basis Period YA
31 Mar of each year 1 Apr 2018 to 31 Mar 2019 2020
30 Jun of each year 1 Jul 2018 to 30 Jun 2019 2020
31 Dec of each year 1 Jan 2019 to 31 Dec 2019 2020

The same rule applies to new companies.

For taxation purposes, a "Company" includes:

A business entity incorporated or registered under the Companies Act or any law in force in Singapore. It usually has the words "Pte Ltd" or "Ltd" as part of its name; or 

  • A foreign company registered in Singapore such as a branch of a foreign company; or 
  • A foreign company incorporated or registered outside Singapore.

A company does not include sole-proprietorship and partnership businesses registered in or outside Singapore

Regardless of tax-residency status, all companies are required to pay corporate tax under the Income Tax Act on any chargeable income derived from Singapore or foreign income remitted into Singapore.

However, Singapore tax-resident companies enjoy several benefits over non-tax resident companies.

A company will be considered tax-resident in Singapore if its control and management had been exercised in Singapore for the preceding YA.

The YA is a 12-month period in which the company’s income will be assessed. For example, for YA 2020, the 12-month period would generally be from 1 January 2019 to 31 December 2019. 

In determining where the company’s control and management is exercised, it is more dependent on the location where its strategic decisions are made (this will generally be the location of the company’s board meetings), rather than the company’s place of incorporation.

With effect from YA 2010, a company is taxed at a flat rate of 17% on its chargeable income regardless of whether it is a local or foreign company. However, with the various level of tax exemption provided by the Singapore government, the effective tax rate for companies can be significantly lower.

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