Key Dates

In Singapore, businesses must generally comply with regulations from two main bodies:

1. IRAS (Inland Revenue Authority of Singapore): Oversees tax matters
2. ACRA (Accounting and Corporate Regulatory Authority): Manages the registration and regulation of businesses and public accountants

Here are some key dates for companies registered under ACRA:

Description	Deadline	Staff Completion Deadline	Penalty for Non-Compliance
Annual Return Filing	Within 30 days	7 days before deadline	$300 fine
GST Quarterly Return	End of Quarter	7 days before deadline	5% of the amount due
Personal Income Tax (YA 2023)	15 April 2023	8 April 2023	5% of the tax unpaid
Corporate Tax Filing (YA 2023)	30 Nov 2023	23 Nov 2023	5% of the tax unpaid
AGM (for companies with FYE 31 Dec)	Within 6 months from the financial year end	15 days before deadline	$300 fine, up to $5,000
ECI (for companies under GIRO)	1st month: 10-month installments 2nd month: 8-month installments 3rd month: 6-month installments	15 days before deadline	5% of the estimated tax unpaid
Preparation of Financial Statement (FYE 31 Dec)	Within 6 months from the financial year end	15 days before deadline	(Penalty if applicable)

For Sole Proprietors & Partnerships

1. Form B/B1: Income tax returns are due by April 15th (paper filing) or April 18th (e-filing).

2. Form P: For partnerships, must be submitted by April 15th (paper filing) or April 18th (e-filing).

Capital Allowances

Deductions for the decline in value of depreciating assets are available under the Uniform capital allowance (UCA) system. In addition to the rules for depreciating assets, deductions are allowed for certain other capital expenditure.

Small business entities have the option of choosing simplified depreciation rules. Under these rules, small business entities can claim an immediate deduction if the cost is below the relevant threshold or else add the asset to the small business depreciation pool.

Land, trading stock and most intangible assets (excluding exceptions such as intellectual property and in-house software) are not depreciating assets.

The decline in value is generally calculated by spreading the cost of the asset over its effective life, using one of two methods:

Prime cost method – decline in value each year is calculated as a percentage of the initial cost of the asset
Diminishing value method – decline in value each year is calculated as a percentage of the opening depreciated value of the asset
MORE: Australian Taxation Office (ATO) Decline in value calculator.

For most depreciating assets, taxpayers can either self-assess the effective life, or use estimates published by the ATO. Taxpayers can recalculate, either up or down, the effective life of an asset if the circumstances of use change and the effective life initially chosen is no longer accurate. An improvement to an asset that increases its cost by 10% or more in a year may result in an obligation to recalculate the effective life of the asset.

Decline in value of cars is restricted to the car limit. From 1 July 2022, the luxury car tax threshold for luxury cars is $64,741 (it was $60,733 for the year commencing 1 July 2021). Luxury car leases are treated as a notional sale and purchase, with decline in value restricted to the car limit.

The decline in value of certain depreciating assets with a cost or opening adjustable value of less than $1,000 can be calculated through a low-value pool. The decline in value for depreciating assets in the pool is calculated at an annual diminishing value rate of 37.5%.

Changes for 2022 and 2023

From 12 March 2020 until 31 December 2020, the asset cost threshold for the instant asset write-off (which is usually only available to small business entities) has increased from $30,000 to $150,000 and the eligibility criteria expended to cover entities with an aggregated turnover threshold of less than $500 million (up from $50 million).

Further, from 12 March 2020 until 30 June 2021 the Backing business investment measure applied to businesses with aggregated turnover below $500 million and provides either:

A deduction of 50% of the cost or opening adjustable value of an eligible asset on installation (existing depreciation rules apply to the balance of the asset's cost), or
For businesses using a small business depreciation pool, a deduction of 57.5% of the cost of the asset in the first year, with the balance added the asset to the small business pool
In addition, from 6 October 2020 to 30 June 2023, full expensing applies to allow eligible businesses with an aggregated turnover of less than $5 billion to deduct the full cost of new eligible depreciating assets. For businesses with aggregated turnover of less than $50 million, full expensing also applies to eligible second-hand assets.