Income Tax Matters

  • Act/Rule/Legislation

  • Online Link to Act/Rule/Legislation

  • Initial Setup or Ongoing Maintenance

    Ongoing compliance requirement

  • Filing and Maintenance Requirements

    A company is taxed on the income earned in the preceding financial year. This means that income earned in the financial year 2014 will be taxed in 2015. In tax terms, using the same example as above, 2015 is the Year of Assessment (YA). In other words, the YA is the year in which your income is assessed to tax. 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.

  • Penalty


  • Application Guidelines / Responsible Persons / Comments

    The Company must have a proper system to keep the records of its business transactions. The records must be kept for at least five years from the relevant YA and be retrievable upon request by IRAS. For example, your records for the financial year 1 Jan 2014 to 31 Dec 2014 (YA 2015) should be kept upto 31 Dec 2019. Documents to keep include: Source documents, e.g. invoices, receipts and vouchers Accounting records and schedules, e.g. general ledger and sales listings Bank statements and bank-in slips Any other business transaction record More details at: