Notices of Assessments are notices business owners receive after registering a company in Singapore, informing them of income tax returns. Most business owners are aware of this fact; however what are rarely broached would be the different types of notices that businesses can be issued with as well as whether there is a necessity to object to them.
Here is a guide to notices of assessment after registering a company in Singapore:
The most common type of notice business owners receive would be for estimated chargeable income that is filed by their company secretary or their authorised tax agent. On a typical basis, no notices should be issued if the ECI filed is NIL. When positive ECI is filed, there is no need to send an objection since it is an estimated assessment with information that is given personally by the tax agent or the company.
Then there’s the estimated chargeable income value raised by IRAS personally due to the company’s failure to file, a low ECI declaration present or the need for advance assessment. IRAS typically raises the ECI of a corporation when they have failed to file for ECI within the deadline (three months from financial year end). They could also do so the ECI values are filed lower than the tax values that were reported on the company’s income tax returns. In this case, business owners may object to the assessment within two months from the date of their notice.
Business owners who disagree with their tax assessment raised by IRAS can file objections to have the tax assessment revised. However, they must do so within two months (from the date of the NOA).
There are currently 3 methods one can utilise to file for tax assessment objections after Singapore company formation:
They can do so by logging into their myTax portal account and selecting the e-service to revise or object to their assessment. However, they must ensure that they have been authorised as an approver by their company to perform corporate tax functions on their behalf. In addition, they will also need their company’s tax reference number and their personal SINGPASS/IRAS PIN. Alternatively, they can also submit letters or emails to state the grounds for objection. Business owners can also download and objection forms located in the official IRAS website and complete the form before submission.
IRAS will send notifications of acknowledgement for receiving the objection from business owners if they were to send an objection electronically or submit the notice of objection filing form. Electronic submissions will receive instant acknowledgement whereas acknowledgement letters will be issued within a 14 day time period from the date in which the form is received.
IRAS may request for more supporting information to review the objections that are filed and decisions will be conveyed with writing within 6 months of the last correspondence with complete information. In the event that the case takes a longer time, business owners will be notified with an estimate from IRA