Does “Purchases” include opening stock?
What is the amount to be declared in Box 1a?
Answer: The amount to be declared is the adjusted profit/loss figure after deducting unutilised capital allowances brought forward, current year capital allowances and unutilised losses brought forward.
Boxes 11 and 13 Chargeable income – Should the chargeable income be the amount before or after deducting the exempt amount under the partial exemption scheme or tax exemption scheme for new start-up companies?
Answer: The chargeable income to be declared should be the amount before deducting the exempt amount. IRAS will compute the exempt amount under the partial tax exemption scheme or tax exemption scheme for new start-up companies* when finalising the assessment. *Applicable to new companies which satisfy the qualifying conditions and have indicated so on Part IV on Page 1 of the Form C.
Can I submit only Page 1 of Form C if Box 1 is checked but Box 2 is not checked?
Answer: Only Page 1 of Form C needs to be submitted by the company if the company did not carry on business, had no income in the preceding year, and the company also does not have any unutilised losses, capital allowances, or donations to be carried forward. However, such company could have owned investments during the basis period, only that such investments do not generate any income for the year of assessment. With the insertion of Box 2, the above requirement does not change. As such, if the company does own investments (hence Box 2 is unchecked), but the company did not carry on business, had no income in the preceding year (hence Box 1 is checked), then the company can still submit only Page 1 on Form C – provided that the company also does not have any unutilised losses or donations to be carried forward.
Can the amount of trade receivables, net of provision be entered if the amount of gross amount of trade receivables is not available anywhere in the accounts?
Answer: Yes, the amount of trade receivables, net of provision amount can be used if the gross amount of trade receivables is not available anywhere in the accounts. The figure should also include third party and related trade debts.
Can the company fill in the required figure as per the description in the company’s audited accounts? If there is no such description in the accounts, can the figure be that of the total of all expenses after the gross profit line?
Answer: The company can fill in the required figure as per the description in the company’s audited accounts. Where there is no such description in the accounts, the total of all expenses after the gross profit line can be used as long as the company is of the view that this figure is for sales, general and administrative expenses. Finance cost need not be included in box 38 unless the company has included Finance cost as part of Sales, General and Administrative Expenses.
Does “Purchases” refer to cost of sales?
Answer: No. However, if the figure for “purchases” is not available in the accounts, insert the figure for “cost of sales” instead, if this figure is available.
Does part X include new assets purchased under hire purchase? If yes, should the cost of the assets be the principal cost or principal repayments made during the year?
Answer: Part X includes assets purchased under hire purchase where cost of assets refers to the principal cost.
Does the “amount” represent gross sale proceeds or net profit? Does receipt mean cash receipt? Is a waiver of loan excluded, in the Box 28 Receipts claimed as not taxable (Including real estate)?
Answer: This represents net profit. Receipts here include both cash and non-cash receipts. A waiver of loan is therefore included.
Does trade payables include third party trade creditors, inter-company trade payables, accrued operating expenses, and hire purchase creditors?
Answer: The amount of trade payables includes third party trade payables and inter-company trade payables, but excludes accrued operating expenses and hire purchase creditors.
How to arrive at the adjusted profit/loss figure?
Answer: This is the amount after adjusting the net profit/loss as per the accounts for non-taxable items, separate source income, and disallowable expenses. To note: The amount to be declared in Box 1a should be the amount before deducting the exempt amount under the partial tax exemption scheme/tax exemption scheme for new start-up companies*. If the amount is a loss/negative figure, enter “X” in the box on the extreme left hand side. You may download the Basic Tax Calculator for help in computing the adjusted profit/loss and chargeable income. * Applicable to new companies which satisfy the qualifying conditions and have indicated so on Part IV on Page 1 of the Form C.
How to arrive at Trust distribution?
Answer: Trust distribution made out of income already taxed at the trustee level need not be included in this box. Amount to be delcared include REIT distribution. Note: You must attach a list showing details of distributions received.
How to complete Form C?
Answer: The Form C is a declaration form used by a company to declare its income. Please ensure that all the necessary sections in the Form C are correctly completed and that it gives a full and true account of the company’s income. In completing the Form C, please note: All lines must be completed. Any field that is not applicable should be filled in as “0” Do not indicate remarks such as “See attached” or “As per tax computation” on the Form C The declaration section on page one of the Form C must be signed by the person making the return. Guide to completing Form C for Year of Assessment 2009 onwards
Page 1 of Form C: Part IV – How do I claim for tax exemption scheme for new start-up companies?
Answer: You must complete Part IV on page 1 of the Form C as follows: 1. Confirm whether the company satisfied all qualifying conditions by entering “1” (Yes) or “2” (No). 2. State the first YA upon incorporation in YYYY format.
Page 4 of Form C: Part IX (Other information) – Where should the amount of additional expenses incurred for back years (commonly termed as prior years’ adjustments) be indicated?
Answer: There is no provision for this item in the Form C. However, the adjustments may be reflected in the tax computation and supporting schedules.Please indicate “1” (Yes) in Box 19 since there is a claim for unutilised capital allowances in section 1 of Part VII.
Page 4 of Form C: Part VIII (Claim of unutilised capital allowances, losses, or donations) – If the company has an adjusted loss but unutilised capital allowances brought forward has been used to offset income from separate source/balancing charge, how should they file File C?
Answer: Please indicate “1” (Yes) in Box 19 since there is a claim for unutilised capital allowances in section 1 of Part VII.
Page 5 of Form C: Part X (Capital allowances / industrial building allowances on new assets) – If the company is claiming capital allowance for the first time for assets purchased in previous years, should ‘1’ be entered (for ‘Yes’) or ‘2’ (for ‘No’)?
Answer: The amount to be declared is the cost of new assets purchased during the year for which capital allowances and/or industrial building allowances can be claimed.
Page 5 of Form C: Part XI (Deduction claimed under Section 14Q for expenditure on renovation or refurbishment works) – What is the amount to be declared in Box 32?
Answer: The amount to be declared is the current year qualifying R&R expenses incurred or n renovation or refurbishing business premises. This is subject to a cap of $150,000 for each relevant three consecutive basis periods.
Pages 2 and 3 of Form C: Part VII (Assessment information) – If the tax computation and accounts are maintained in a currency other than the Singapore dollars, how do we complete the Form C to show that the currency is not Singapore dollars?
Answer: Form C should be completed in Singapore dollars and not in the foreign currency. Please refer to the IRAS circular on ‘Filing of Income Tax Computations and Financial Statements in Functional Currencies other than Singapore Dollars‘ for details.
Should I include the cost of the new assets purchased during the year of I defer the capital allowance and/or industrial building allowance claim?
Should the amounts filled in Boxes 21 to 26 be before or after group relief?
Answer: This should be the amounts after group relief.
Should the chargeable income include concessionary income?
Answer: Yes, the amount should include income taxed at normal rate and concessionary rates. (Details of the concessionary income should also be filled in Box 14).
Should the chargeable income include exempt income arising from tax incentives?
Answer: No. Exempted income arising from tax incentives should be filled in Box 18.
Should the gross rent or net rent after deducting rental expenses be declared?
Answer: The net rent is to be declared.
What amount should be filled in Box 1D if the net rent is negative?
Answer: If the net rent is negative, enter “0”. However, if the negative rent is a result of Industrial Building Allowances claimed against the rent, enter the negative amount with an “X” in the box on the extreme left hand side to indicate loss/negative amount.
What does this Box 34 Revenue refer to?
Answer: This refers to the main income source of a company. For instance, the revenue of an investment company would be its investment income.
What is to be entered in the Box 12 Loss claimed from transferer company?
Answer: The amount to be entered is the current year losses transferred from other companies within the group under the Group Relief system. If you are claiming the group relief, please complete Form GR-B and submit together with Form C.
What is to be filled in the Box 8 Current year capital allowances / losses carried back?
Answer: The amount to be entered is the current year capital allowances/losses to be carried back to the three immediate preceding years of assessment, subject to a maximum of $200,000* *This enhanced loss carry-back scheme applies only for YA2009 and 2010.
What is to be filled in this Box 36 Gross profit/loss?
Answer: This refers to the amount after taking into account the cost of goods sold. If there is no cost of goods sold, the gross profit should be the same amount as the revenue. If the amount is a loss/negative figure, enter “X” in the box on the extreme left hand side.
What is to be included in the Box 39 Directors’ fees and directors’ remuneration?
Answer: The amount should include both directors’ fees and directors’ remuneration. Directors’ remuneration includes salaries, leave pay, commissions, bonuses, gratuities, allowances, other emoluments paid in cash and contributions made to approve pension or provident funds which are deductible under the Act.
What is to be written in the Box7, Loss transferred to claiment company?
Answer: The amount to be entered is the current year losses to be transferred to other companies within the group under the Group Relief system. If you are transferring losses under the Group Relief system, please complete Form GR-A and submit together with Form C.
What kind of income should be included in this section, Box 2, foreign income received in Singapore?
Answer: This refers to income sourced outside Singapore and is remitted to Singapore, e.g.
- Foreign dividends and interest income received from overseas. For foreign dividends, if double tax relief is claimed, the amount to be entered should be the regrossed amount net of allowable expenses (if any).
- Profits of overseas branches or permanent establishments remitted to Singapore.
Please exclude foreign income remitted into Singapore but exempted under Section 13(8) of the Income Tax Act.
Question : What should be written in the Box 45 Total (Add Boxes 34 up to 44)?
Answer: This is the total of all the POSITIVE amounts of boxes 34 to 44 LESS any NEGATIVE amounts and it serves as a control total. If the total of boxes 34 to 44 is a negative amount and greater than the positive amounts of other boxes from 34 to 44 , then box 45 would be a negative amount. Enter “X” in the box on the extreme left-hand side if the total is a negative amount
Question : When should Box 20 be completed?
Answer: Only when Box 19a is indicated with “1” (Yes), i.e., there is a substantial change in the company’s shareholders and their shareholdings and the company is applying for a waiver of the shareholding test under Sections 23(5) and 37(15).
Question : Where should I declare any foreign income not remitted to Singapore?
Answer: This need not be indicated in the Form C. However, the amount should be shown in your tax computation.
Question : Where the accounts have an item called “Other receivables, deposits, and prepayments”, can a figure that represents the total of the three components be used? On the other hand, if there is no such item in the account, is the figure ‘0’ to be filled?
Answer: If there is a breakdown of “Other receivables, deposits, and prepayments” in the Notes to the Accounts, please fill in the figure for “Other receivables” in box 41. However, if there is no such breakdown, the figure for “Other receivables, deposits, and prepayments” can be used. In the case where the item “Other receivables, deposits, and prepayments” is not available anywhere in the accounts, please fill in the figure ‘0’.
Question : Where unutilised capital allowances/losses are claimed and part of the capital allowances/losses is to be disregarded for certain periods (i.e. company is not claiming for a waiver under Sections 23(5) and 37(15) of the Income Tax Act)?
Answer: Box 19 is to be completed with “1” (Yes) Box 19a is to be completed with “2” (No) You may leave Box 20 blank since no unutilised capital allowance/loss is claimed under Sections 23(5) and 37(15). The amount of capital allowances/losses disregarded should be shown in the tax computation.