EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
Essential information to note before completing Form C-S•

You may use the Basic Corporate Tax Calculator available at IRAS’ website (www.iras.gov.sg) under Home > Businesses> Companies > Working out Corporate Income Taxes > Basic Corporate Tax Calculator to prepare the tax computation before
completing Form C-S.

•

All boxes in Form C-S must be completed. For items that are not applicable, please enter ‘0’.

•

Information on Unutilised Donations brought forward/ carried forward is not required for Form C-S. IRAS will automaticallycompute and allow any unutilised donations in your Year of Assessment (YA) 2018 assessment.

•

If the company is claiming Section 19B writing-down allowances for Intellectual Property Rights (IPRs) acquired during thebasis period of YA 2018, please submit the Declaration Form available at IRAS’ website (www.iras.gov.sg) under Home >Quick Links > Forms > Businesses > Corporate Tax forms. If you are e-Filing the Form C-S, the declaration form is to besubmitted via the Submit Document e-Service (mytax.iras.gov.sg).

•

For more information on tax schemes and deductions, please refer to IRAS’ website at www.iras.gov.sg.

Relevant sections of Form C-S to be completed
Type of Companies
Dormant Companies(see Note 2)

Without Unutilised
Losses/ Donations
brought forward

What tocomplete?

Notes
1

Only Page 1

All Companies• Page 1• Boxes 15a to 17 on
Page 2• Box 21 on Page 3
and other boxes
where applicable• Page 1• Boxes 14 & 20 on
Page 2

Description

Explanation

Newly-incorporated
Company••• Page 1• Boxes 1 and 17
on Page 2 withthe amount of
deemed mark-up/
mark-up• Box 21 on Page 3
and other boxes
where applicable(Other than
Dormant, Investment
Holding &Companies
Servicing Only
Related Parties with
“Cost Plus Mark-Up”
basis ofassessment)

All sections

If you are filing the company’s taxes based on its first set of financial statements
covering a period of more than 12 months, please do the following:
Sections

e-Filing via mytax.iras.gov.sg

Submission by Paper Form

1

Enter the amount for YAs 2017and 2018

Enter the amount for YA 20182

Enter the amount for thecompany's whole financial
periodEnter the amount for thecompany's whole financial
periodDeclare if applicable

Declare if applicable

5Enter the qualifying expenditure
incurred for YA 2018

Enter the qualifying
expenditure incurred for YA
2018

-

NA

Submit the tax computationand supporting schedules for
YA 2017 together with the Y A
2018 Form C-S. Please refer
to Explanatory Notes underBox 32b for an example.

3&4

IRIN 300/C-S

Investment Holding
Companies(see Note 3)

With Unutilised
Losses/ Donations
brought forward

Companies
Servicing Only
Related Parties
with “Cost Plus
Mark-Up” basis ofassessment (seeNote 4)

The amount of revenue expenses that qualify for deduction under the “Concession
for Enterprise Development – Deduction of Certain Expenses Incurred before
Business Revenue is Earned” should be included in Box 8 of section 1. For more
information on the concession, please refer to IRAS’ website under Home >Businesses > Companies > Working out Corporate Income Taxes > Business Expenses,
click on “Select Subheading” and select “Non-Deductible Business Expenses”
followed by “Expenses Incurred before Commencement of Businesses”.

Page 1EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
2

Dormant Company•

A dormant company refers to one that did not carry on business and had no
income i n t he basis per iod for YA 2018, i.e. the financial year ending in 2017.

•

A dormant company is not allowed to carry forward any expenses incurred in YA 2018as losses nor claim capital allowances.

If the dormant company is not expecting to commence/ recommence business or receive
income for the next two years, the company may wish to apply for waiver of its obligation tosubmit its income tax return. For more information on the application process, please refer to
IRAS’ website under Home > Businesses > Companies > Managing Taxes for Dormant
Companies or Companies Closing Down > Dormant Companies.
3

4

Investment Holding
Company

Company Servicing
only Related Parties
with “Cost Plus
Mark-up” basis ofassessment•

An investment holding company refers to a company whose principal activity is that ofinvestment holding. It owns investments such as properties and shares for long term
investment and derives investment income such as dividend, interest or rental.

•

For more information on investment holding companies, please refer to IRAS’ website
under Home > Businesses > Companies > Working out Corporate Income Taxes >Specific Industries > Investment Holding Companies.

•

For information on companies that only render services to related parties, please refer to
IRAS’ website under Home > Businesses > Companies > Working out Corporate Income
Taxes > Specific Industries > Companies Servicing Only Related Parties.

•

Note: Typical service companies such as accounting firms, restaurants, retailers are notconsidered as companies that only render services to related parties. These companies
must complete all sections of the Form C-S.

Qualifying Conditions for Submitting Form C-S (Page 1)abc

Revenue isS$5,000,000 or
below

•

Income taxable at17%•

Carry-back of
Current Year
Capital Allowances/
Losses••••

Revenue is the gross amount of income derived by a company from its principal activities
in the basis period for that YA, excluding separate source income such as interest.
A newly-incorporated company filing its first tax return, based on its first set of financial
statements covering a period of more than 12 months, would meet this qualifying condition
if the revenue for the 12-month period ending on its financial year-end is $5,000,000 or
less. Example: A company incorporated on 15 Apr 2016 closed its first set of financial
statements on 30 Jun 2017. It would meet this qualifying condition if the revenue from 1
Jul 2016 to 30 Jun 2017 is $5,000,000 or less. Please refer to Explanatory Notes 1 andBox 32b.
The company must not derive tax-exempt income (except for one-tier exempt Singapore
dividends and/ or specified foreign-sourced income exempted from tax under S13(8)) or
income taxable at concessionary tax rates. Examples of such income are Section 13A
shipping income, income under pioneer incentive, etc.
Exempt income does not refer to the Tax Exemption for New Start-up Companies.
Current year unutilised capital allowances and trade losses (collectively “loss items”) thatare carried back to offset prior year’s income, e.g. YA 2018 unutilised loss items carriedback to offset against YA 2017 income.
Carry-back does not refer to unutilised capital allowances/ trade losses that are brought/
carried forward.

dGroup Relief•

Current year unutilised capital allowances/ trade losses/ donations that are deductedagainst income of another company belonging to the same group, with the sameaccounting year-end.

eInvestment
Allowance•

Allowances for approved capital expenditure granted under a tax incentive scheme, e.g.
approved project by the Ministry of Trade and Industry.

fForeign Tax Credit
and Tax Deducted
at Source•

Foreign Tax Credit: A claim of tax paid in foreign country against the Singapore tax payable
on the same income.
Tax Deducted at Source: Singapore tax that has been deducted under Section 45 of the
Income Tax Act.

Productivity and Innovation
Credit + (PIC+) Scheme (Page 1)

•

•

•

•

IRIN 300/C-S

From YA 2015 to YA 2018, qualifying SMEs that invest in the six qualifying activities under
the PIC Scheme can enjoy 400% tax deductions/ allowances on an additional $200,000
in expenditure for each qualifying activity per YA. This brings the expenditure cap for
qualifying SMEs from $400,000 to $600,000 per qualifying activity per YA.
“Qualifying SME” broadly refers to a company which is carrying on a trade or businessduring the basis period and whose (a) revenue is not more than $100 million or (b)employment size is not more than 200 employees. This criterion will be applied at thegroup level if the business is part of a group.
For more information on PIC+ Scheme, please refer to IRAS’ website under Home >Schemes > Productivity and Innovation Credit Scheme, click on “Select Subheading” andselect “PIC Benefits”.

Page 2

EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
Section 1: Tax Adjustments (Page 2)
Box 1

Net Profit/ Lossbefore Tax as per
Financial
Statements•

This refers to Total Income less Total Expenses. It can be extracted from the Statement ofComprehensive Income (or commonly known as Profit & Loss Statement).

Box 2

Separate Source
Income•This refers to total income other than that from the company's principal activity or trade.

•

Examples are rent from real property, fixed deposit interest and other non-trade taxable
income. Details of such income must also be entered in Boxes 15a, 16 and 17, whereapplicable.

•

It excludes exempt one-tier dividend income which should be included in Box 3 as it is nottaxable.

Box 3

Non-Taxable
Income•Examples are exempt one-tier dividend income, cash payout under the Productivity andInnovation Credit (PIC) Scheme and gain on disposal of fixed assets.

Box 4

Non-Tax Deductible
Expenses•

Non-tax deductible expenses refer to expenses that are:- not wholly and exclusively incurred in the production of income; or- not revenue in nature; or- prohibited under the Income Tax Act.

Box 6

Box 7

Deduction for
Renovation or
Refurbishment(R&R) Works
under Section 14Q

Enhanced
Deductions
under
Productivity
and Innovation
Credit (PIC)/
PIC+ Scheme
for training; leasingof PIC IT and
automationequipment; inlicensing/registration of
intellectual property
rights; R&D;
approved design
projects

Box 8

Further Deductions/
Other Deductions•

Examples are depreciation, donations, fines and penalties, private expenses, S-plate car
expenses, expenses incurred to produce separate source income and non-taxable income
and interest expenses attributable to non-income producing assets.

•

Examples are expenses relating to general electrical installation and lighting, door,
window, fixed partition, flooring and wall covering, provided these items do not involve
structural changes for which prior approval from Commissioner of Building Control isrequired. Designer and professional fees are not to be included.

•

Deduction is granted on a straight-line basis over three consecutive YAs and subject toan expenditure cap of $300,000 for every three consecutive basis periods.

•

For more information, please refer to IRAS’ website under Home > Businesses >Companies > Working out Corporate Income Taxes > Business Expenses, click on“Select Subheading” and select “Non-Deductible Business Expenses” followed by“Section 14Q deduction”.

•

Under the PIC Scheme, you can deduct an additional 300% (250% for research anddevelopment conducted in Singapore) of your qualifying expenditure in the six activities.
The enhanced deduction is subject to a combined expenditure cap of $1,200,000 from
YAs 2016 to 2018 for each activity.

•

Under the new PIC+ Scheme announced in Budget 2014, from YA 2015 to YA 2018,
qualifying SMEs can enjoy tax deductions/ allowances on up to $600,000 (instead of$400,000) for each qualifying activity per YA. The combined expenditure cap under the
PIC+ Scheme will be increased to $1,800,000 from YAs 2016 to 2018 for each activity.
Please refer to IRAS’ website for details of the combined expenditure cap.
In-house training not certified by the SkillsFuture Singapore Agency or Institute ofTechnical Education (ITE) will qualify for PIC but shall be subject to an expenditure capof $10,000 for YA 2018. This claim is subject to the overall expenditure cap of $1,200,000(PIC Scheme)/ $1,800,000 (PIC+ Scheme) for training from YA 2016 to YA 2018.

••

From YA 2013 to 31 July 2016, you can also convert up to $100,000 of qualifying
expenditure in all six activities for each YA into a non-taxable cash payout at a conversion
rate of 60%. The conversion rate will be 40% for qualifying expenditure incurred on orafter 1 August 2016 to YA 2018. Expenditure which has been converted into PIC cash
payout cannot be claimed as a tax deduction.

•

For more information on PIC or PIC+ Scheme, please refer to IRAS’ website under Home> Schemes > Businesses > Productivity and Innovation Credit Scheme, click on “SelectSubheading” and select “PIC Benefits”.

This box shall include:•

expenditure qualifying for further deductions. Examples are:- expenses relating to approved trade fairs and exhibitions (Section 14B);- research and development expenditure (Sections 14DA(1) and 14E). Please prepare
and retain the Research & Development (R&D) Claim Form, which is available on IRAS’
website;- expenses relating to overseas investment development (Section 14K).

•

IRIN 300/C-S

tax allowable deductions that are not included in Boxes 1, 6 and 7. An example is precommencement expenditure (Section 14U).

Page 3

EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
Box 10

Balancing Charge•

When a fixed asset is sold or written off, a balancing charge (BC) or balancing allowance(BA) must be calculated if capital allowance had been claimed on the asset previously.

•

A taxable BC arises if the sale proceeds is higher than the tax written down value. The
taxable BC is restricted to the capital allowances allowed on the asset previously. A
deductible BA arises if the sale proceeds is lower than the tax written down value. BA
should be included in Box 12.

Box 11

Unutilised
CapitalAllowancesbrought
forward•Enter the Unutilised Capital Allowances carried forward figure from the YA 2017 Notice ofAssessment (NOA). If the YA 2017 NOA has not been issued, enter the figure found in the
YA 2017 tax computation.

Box 12Current Year
Capital Allowances•

Capital allowances are given on assets which qualify as plant or machinery used in yourtrade or business.

excluding Enhanced
Allowances under
Productivity andInnovation Credit(PIC)/ PIC+ Scheme•

This box should include the following if they are claimed:- Industrial building allowances (IBA);

Box 13

Enhanced
Allowances
under
Productivity
and Innovation
Credit (PIC)/
PIC+ Scheme- Land intensification allowances (LIA);- Writing-down allowances on the acquisition cost of intellectual property rights. Pleasesubmit the “Declaration for the Purpose of Claiming Writing-Down Allowances forIntellectual Property Rights (IPRs) under Section 19B of the Income Tax Act” form whichis available on IRAS’ website under Home > Quick Links > Forms > Businesses >Corporate Tax forms. If you are e-Filing Form C-S, the declaration form should besubmitted via the Submit Document e-Service (mytax.iras.gov.sg);- Balancing allowances (BA) (see Explanatory Notes under Box 10).
•For more information, please refer to IRAS’ website under Home > Businesses >Companies > Working out Corporate Income Taxes > Claiming Allowances.

•

You can deduct an additional 300% of allowances on the acquisition expenditure of PIC
IT and automation equipment and intellectual property rights, subject to the same
expenditure cap explained in Explanatory Notes under Box 7. Expenditure which has
been converted into PIC cash payout cannot be claimed as tax allowances.

for acquisition of
PIC IT and
automationequipment;
intellectual
property rights
Box 14

Unutilised Losses
brought forward•

Enter the Unutilised Losses carried forward figure from the YA 2017 Notice of Assessment(NOA). If the YA 2017 NOA has not been issued, enter the figure found in the YA 2017 tax
computation.

Box 15aGross Rental
Income•Enter the total rental income for the financial year ending in 2017.

Box 15b

Less: Deductible
Expenses•This refers to revenue expenses directly incurred to earn the rental income. Examples areinterest on loan to acquire the property, insurance, property tax, repair and maintenance.

•

Expenses (e.g. agent’s commission) incurred to secure the first tenant are not taxdeductible.

•

For investment holding companies, deductible expenses include statutory expenses
attributable to the rental income.

•This box excludes industrial building allowances (IBA) and land intensification allowances(LIA), which should be included in Box 12.

Box 15c

Net Rental Income•

If net rental income is negative, ‘0’ will be shown. Expenses in excess of income cannot
be deducted against any other type of income or carried forward.

Box 16
Box 17

Interest Income
Other Taxable
Income•If net interest income or other net income is negative, enter ‘0’. Expenses in excess
of income cannot be deducted against any other type of income or carried forward.

IRIN 300/C-S

Page 4

EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
Box 19Box 20Unutilised Capital
Allowances
carried forward
Unutilised Losses
carried forward•

If Box 18 is negative, it should be equal to the sum of Boxes 19 and 20. Otherwise
Boxes 19 and 20 should be ‘0’.

Section 2: Information from Financial Statement (Page 3)
Enter the amounts as shown in the Audited/ Unaudited Financial Statements for the financial year (unless otherwise indicated).
If not applicable, enter ‘0’ in the last box on the right.
Box 21

Revenue•

Please refer to Note a above.

Box 22Gross Profit/ Loss•

This refers to the amount after taking into account the cost of goods sold. If there
is no cost of goods sold, the gross profit should be the same as the revenue.

Box 23

Directors’ Fees andRemuneration•

This refers to all fees and payments made to directors, e.g. salaries, leave pay,
commissions, bonuses, gratuities, allowances, CPF. It excludes benefits-in-kind,
medical expenses and cash allowances in lieu of medical expenses.

Box 24

Total
Remuneration
excluding
Directors’ Fees
and Remuneration•

This refers to total employees’ remuneration but excludes the figure entered in Box
23, ‘Directors’ Fees and Remuneration’. Remuneration includes salaries, leave pay,
commissions, bonuses, gratuities, allowances, CPF. It excludes benefits-in- kind,
medical expenses and cash allowances in lieu of medical expenses.

Box 25

Medical Expenses•

This refers to deductible medical expenses incurred i n or in connection with theprovision of medical treatment, including cash allowances in lieu of medical
expenses and medical insurance.

•

Deductible medical expenses are capped at 1% of total remuneration (excluding
director’s fees). However, the cap is increased to 2% of remuneration if thecompany has:a) provided its employees with inpatient medical insurance benefits in the form ofa Portable Medical Benef its Scheme, a Transferable Medical Insurance
Scheme or a Shield plan; orb) made ad-hoc contributions to its employees’ Medisave accounts (subject to$1,500 cap per employee per year) during the relevant basis period; andc) met the qualifying conditions under the respective scheme/ plan.
For more information, please refer to IRAS’ website under Home > Businesses >Companies > Working out Corporate Income Taxes > Business Expenses, click on “SelectSubheading” and select “Non-Deductible Business Expenses” followed by “Medical
Expenses”.

•

Box 26

Transport/
Travelling
Expenses•This refers to the transport/ travelling expenses as per the financial statements.

Box 27

Entertainment
Expenses•This refers to the entertainment expenses as per the financial statements.

Box 28Inventories•

This refers to the gross amount of inventories. If the gross amount is not available in
the financial statements, please enter the amount net of any provision made.

Box 29Trade Receivables•

This refers to the gross amount of trade receivables, including related party tradedebts. If the gross amount is not available in the financial statements, please enter
the amount net of any provision made.

Section 3: Deduction of Unutilised Capital Allowances/ Losses/ Donations Brought Forward (Page 3)
Box 30IRIN 300/C-S

Substantialchange in thecompany’s
ultimateshareholders
and theirshareholdings
as at therelevant dates•

You can deduct unutilised capital allowances (CA)/ losses/ donations incurred in aprevious year against income in the current year if there is no substantial change inthe ultimate shareholders and their shareholdings as at the relevant dates. Thismeans that at least 50% of the shareholdings are held by the same shareholders
as at the relevant dates – this is known as the “shareholding test”.

•

Relevant dates are as follows:
Unutilised CA

Unutilised Losses/ Donations

Date
1

Last day of the YA in which the CA
arose

Last day of the year in which the losses/
donations were incurred

Date
2First day of the YA in which the utilisation occurred

Page 5EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
ExampleUnutilised CA: If the unutilised CA for YA 2013 (assuming the basis period is from 1
Oct 2011 to 30 Sep 2012) are utilised in YA 2018, the relevant dates for comparing theshareholders are 31 Dec 2013 and 1 Jan 2018.
Unutilised Losses/ Donations: If the losses incurred for YA 2013 (assuming basis
period is from 1 Oct 2011 to 30 Sep 2012) are utilised in YA 2018, the relevant dates
for comparing the shareholders are 31 Dec 2012 and 1 Jan 2018.

Box 31

Change inprincipal
activities•

If there is a substantial change in shareholders and their shareholdings, you may
write to IRAS to apply for waiver of the shareholding test. Applications for waiver ofthe shareholding test will be considered based on the merits of each case andgranted if the substantial change in shareholdings is not tax-motivated.

•

Where waiver of the shareholding test has been granted, the unutilised CA/ tradelosses/ donations (which would otherwise not be deductible) can be deducted only
against profits derived from the same trade/ business in respect of which theyarose.

•

To deduct unutilised capital allowances brought forward, there must not be a change
in your principal activities during the basis period.

Section 4: Tax Exemption Scheme for New Start-up Companies (Page 3)
Box 32a

Qualifying
conditions•

The scheme provides for tax exemption to new start-ups for each of their first 3
consecutive YAs:
Full exemption on the first $100,000 of normal chargeable income*
50% exemption on the next $200,000 of normal chargeable income*To qualify for tax exemption for new start-ups, a company must:a) be incorporated in Singapore (including companies limited by guarantee#);b) be a tax resident in Singapore for that YA; andc) the company’s total share capital is beneficially held directly by no more than 20
shareholders throughout the basis period for that YA where:•

i. all of the shareholders are individuals; orii. at least one shareholder is an individual holding at least 10% of the issued
ordinary shares of the company.
The following types of companies incorporated after 25 February 2013 are not eligible forthe tax exemption scheme:a) a company whose principal activity is that of investment holding; andb) a company which undertakes property development for sale, for investment, or forboth investment and sale.

•

However, these companies will be eligible for partial tax exemption.
* Normal chargeable income refers to income to be taxed at prevailing corporate tax
rate, which is 17% for YA 2018.

Box 32bIRIN 300/C-S

Company’s first
YA uponincorporation#

Companies limited by guarantee must have members:• all of whom are individuals throughout the basis period for that YA; or• at least one of whom is an individual throughout the basis period for that YA, and thecontribution of that individual under the Memorandum of Association of the company tothe assets of the company in the event of it being wound up, amounts to at least 10% of
the total contributions of the members of the company throughout the basis period forthat YA.

•

The first YA refers to the YA relating to the basis period during which it wasincorporated.

•

If your first set of financial statements covers a period of more than 12 months
from the date of incorporation, the profits/ losses must be attributed to two YAs as
the basis period for the first YA should not be more than 12 months.

•

ExampleA company was incorporated on 15 Apr 2016 and its first set of financial statements
closed on 30 Jun 2017. Its first 3 consecutive YAs are as follows:

Page 6

EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018
YA

Basis Periodst2017 (1 YA)
2018 (2nd

15 Apr 2016 to 30 Jun 2016

YA)

1 Jul 2016 to 30 Jun 20172019 (3rd YA)

1 Jul 2017 to 30 Jun 2018

Section 5: Productivity and Innovation Credit (PIC)/ PIC+ Scheme
Boxes 33 to 39: Enter the total cost incurred for each activity under the PIC/ PIC+ Scheme. Total cost is derived after
excluding grant/ subsidy from the Government/ Statutory Board and amount converted to Cash Payout.
PIC IT and
Automation
Equipment
Acquisition andLeasing•

This refers to costs incurred to acquire and/ or lease prescribed or approved PIC IT and
automation equipment.

•

Examples of PIC IT and automation equipment are fax machine, laser printer,computer, laptop, software.

•

For more information, please refer to IRAS’ website under Home > Schemes >Productivity and Innovation Credit Scheme, click on “Select Subheading” and select“Eligibility” followed by “PIC IT and Automation Equipment List”.

Box 34In-house Training
not Certified by
SkillsFuture
Singapore Agency or
ITE• This refers to costs incurred on in-house training for employees that is not certified by

Box 35External andCertified In-house
Training• This refers to costs incurred on external training and in-house training for employees

Box 36

Intellectual
Property Rights(IPRs)
Acquisition and
In-Licensing•

This refers to costs incurred to acquire IPRs for use in the company’s trade orbusiness, for example, price paid for a copyright. From YA 2013, it includes costs
incurred on IPR in-licensing.

•It excludes Economic Development Board approved IPRs and IPRs relating tomedia and digital entertainment contents granted an accelerated 2-year write-down.

•

If the company is claiming Section 19B writing-down allowances on IPRs acquired
during the basis period of YA 2018, please submit the “Declaration for the Purpose of
Claiming Writing-Down Allowances for Intellectual Property Rights (IPRs) under Section
19B of the Income Tax Act” form which is available on IRAS’ website under Home > Quick
Links > Forms > Businesses > Corporate Tax forms. If you are e-Filing Form C-S, thedeclaration form should be submitted via the Submit Document e-Service(mytax.iras.gov.sg).

Patents,
Trademarks,
Designs andPlant Varieties
Registration•

This refers to registration costs such as official fees and professional fees incurredin relation to the registration of patents, trademarks, designs and plant varieties.

•

An example is the fee paid to the Intellectual Property Office of Singapore (IPOS) toregister a trademark.

ResearchandDevelopment(R&D)
Activities•

This refers to costs incurred on staff costs and consumables for qualifying R&D
activities carried out in Singapore or overseas. Examples are salaries for R&D
personnel and fees paid to an R&D institute for creating a novel product.

•

R&D done overseas must be related to the trade or business in Singapore.

•

Please prepare and retain the Research & Development (R&D) Claim Form, whichis available on IRAS’ website.

•

For more information, please refer to IRAS’ website under Home > Businesses >Companies > Working out Corporate Income Taxes > Business Expenses, click on“Select Subheading” and select “Non-Deductible Business Expenses” followed by“Research and development”.

•

This refers to staff costs of qualified designers for approved industrial or productdesign projects conducted primarily in Singapore.

•

Examples of qualifying expenditure are salaries for qualified in-house designers andfees paid to an approved design service provider for an approved design project.

•

The project must be approved by the DesignSingapore Council(www.designsingapore.org).

Box 33Box 37

Box 38Box 39Approved Design
Projects

the SkillsFuture Singapore Agency or Institute of Technical Education (ITE), subject toa cap of $10,000 per YA.

certified by the SkillsFuture Singapore Agency or ITE.

The above information is intended for better general understanding and is not intended to comprehensively address all possible issues that may arise.
While every effort has been made to ensure that the above information is consistent with existing policies and practice, should there be any changes,
IRAS reserves the right to vary its position accordingly. For the latest information, please refer to IRAS’ website at www.iras.gov.sg.

IRIN 300/C-S

Page 7

EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018COMPUTATION OF TAX PAYABLES$Net Profit/ (Loss) Before Tax (per financial statements)
Less: Separate Source Income- Overseas interest income- Gross rental income

Less:

Add:

Less:

Less:

Less:
Add:

Less:

Less:

Unutilised capital allowances brought forward
Current year capital allowances
Enhanced capital allowances
Adjusted profit/ (loss) after capital allowances
Unutilised losses brought forward

150,000

1(42,900)

2(1,000)106,100

3

References(see below)

i

7,630
113,730(750)
112,980

45
7
9(2,000)(3,000)(9,000)98,980(1,000)97,980

11
12
13

iv

14

iii

36,000(5,000)31,0006,900
135,880(1,250)

iii

15a
15b
15c
16
18
v

(600)
134,030

ii(69,515)
64,515vi(7,500)(62,015)

Chargeable income after exempt amount

Less:

Form C-S(Box No.)

1,500
350
5,000
600
180

Adjusted profit/ (loss) before other deductions
Enhanced deduction for external training (250 x 300%)
Adjusted profit/ (loss) before capital allowances

Separate source income- Gross rental income- Less: Deductible expenses related to rental income- Net rental income- Interest income (remitted during the year)
Total income/ (losses) before donations
Unutilised donations brought forward
Donations to approved Institute of Public Characters(IPCs)
Chargeable income before exempt amountPartial exempt amount- First S$10,000 @ 75%- Next S$124,030 @ 50%

S$(6,900)(36,000)

Non-taxable income- Gain on sale of fixed assets

Non-tax deductible expenses- Depreciation- Donations- Deductible expenses related to rental income- Fines and penalties- S-plated car expenses

ANNEX

Tax assessed at 17%
Corporate income tax rebate(40% x 10,967.55)

10,967.55(4,387.02)

Net tax payable

6,580.53

vii

References:i.

Donations made to both approved Institute of Public Characters (IPCs) and non-IPCs are not tax deductible expenses and must be added
back.

ii.

Approved donations made during the financial year = S$240
Qualifying tax deduction = S$240 x 2.5 = S$600
The qualifying deduction of S$600 will be automatically included in the company’s tax assessment for YA 2018 based on information from
IPCs. Companies need not declare the donation amount separately in the Form C-S but need to less out the amount in Box 4 – Non-Tax
Deductible Expenses. The “View Donation” e-Service, which is available at myTax Portal, allows the company to view the donations made toapproved IPCs.

iii.

Please refer to Section 1 (Boxes 11 and 14) and Section 3 (Boxes 30 and 31) of the Explanatory Notes to Form C-S.

iv.

Please refer to Section 1 (Box 13) of the Explanatory Notes to Form C-S.

IRIN 300/C-S

Page 8EXPLANATORY NOTES TO FORM C-S FOR YEAR OF ASSESSMENT (YA) 2018v.

The unutilised donations brought forward will be automatically included in the company’s tax assessment for YA 2018. This is provided theamount utilised did not exceed the maximum of 5 years, which it was allowed to be carried forward to set-off against income in the subsequent
YAs. E.g. Only approved donations unutilised from YA 2013 to YA 2017 can be used to set-off against the chargeable income in YA 2018.

vi.

Computation of Tax Exemption Scheme for New Start-up Companies (if applicable):S$
100% on the first S$100,000

100,000

50% on the next S$34,030

17,015

Total Exempt Amount

117,015

Please refer to Section 4 (Box 32a) of the Explanatory Notes to Form C-S for the qualifying conditions on the Tax Exemption Scheme for New
Start-up Companies.
vii.

This amount is computed automatically based on 40% of tax payable, capped at S$15,000. For more details, please refer to the IRAS’ website
under Business > Companies > Learning the basics of Corporate Income Tax > Corporate Tax Rates, Corporate Income Tax Rebates, Tax
Exemption Schemes and SME Cash Grant.

IRIN 300/C-S

Page 9