Small businesses in Singapore are required to pay taxes according to specific timelines and schedules set by the Inland Revenue Authority of Singapore (IRAS). The timing of tax payments can vary depending on the type of tax and the business’s financial year-end. Here’s an overview of when small businesses typically pay taxes in Singapore:
- Corporate Income Tax (CIT): Small businesses must file their annual corporate income tax returns with IRAS within three months after their financial year-end. This means that if a small business has a financial year ending on December 31st, it should submit its CIT return by March 31st of the following year. Payment of the CIT liability is also due by this deadline.
- Goods and Services Tax (GST): Businesses registered for GST are typically required to file their GST returns on a quarterly or monthly basis. The exact frequency of filing depends on the business’s turnover. Payment of the GST liability is typically due within one month after the end of the accounting period.
- Property Tax: Property tax is typically payable in two installments, with payment due in March and September each year. The exact due dates can vary, so businesses should check with IRAS for their specific payment schedule.
- Withholding Tax: Withholding tax is usually deducted and paid at the time of making payments to non-resident individuals or companies. The withholding tax due date coincides with the date of payment to the non-resident.
- Employment-related Taxes: CPF contributions for employees should be made by the employer on a monthly basis. The due date for CPF contributions is typically the last day of the month following the month in which the wages were paid.
It’s crucial for small businesses to keep accurate financial records and stay informed about their specific tax obligations and deadlines. Failure to meet tax deadlines can result in penalties and interest charges, so staying compliant with tax obligations is essential for the smooth operation of small businesses in Singapore.