FAQs  FILE C

How to complete Form C?

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

Can I submit only Page 1 of Form C if Box 1 is checked but Box 2 is not checked?

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.

Page 1 of Form C: Part IV - How do I claim for tax exemption scheme for new start-up companies?

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.

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?

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.

What is the amount to be declared in Box 1a?

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.

How to arrive at the adjusted profit/loss figure?

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?

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.

Should the gross rent or net rent after deducting rental expenses be declared?

The net rent is to be declared.

What amount should be filled in Box 1D if the net rent is negative?

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 kind of income should be included in this section, Box 2, foreign income received in Singapore?

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.

Where should I declare any foreign income not remitted to Singapore?

This need not be indicated in the Form C. However, the amount should be shown in your tax computation.

What is to be written in the Box7, Loss transferred to claiment company?

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 is to be filled in the Box 8 Current year capital allowances / losses carried back?

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.

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?

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.

Should the chargeable income include concessionary income?

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?

No. Exempted income arising from tax incentives should be filled in Box 18.

What is to be entered in the Box 12 Loss claimed from transferer company?

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.

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 sh

Please indicate "1" (Yes) in Box 19 since there is a claim for unutilised capital allowances in section 1 of Part VII.

When should Box 20 be completed?

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).

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), how should the rel

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.