Corporate Taxation
A corporation is generally liable for Singapore income tax on all income accruing in, or derived from Singapore, as well as foreign sourced income remitted or deemed remitted into the country.
Year of Assessment (YA)
Year of Assessment refers to the year in which income tax is calculated and charged as defined by the IRAS for individuals and companies.
The chargeable income and the associated income tax are determined on a preceding year basis. This means that the income earned in the financial year 2022, which refers to basis period, will be taxed in year 2023 (hence the reference to the YA). As an example, assuming that the financial year-end of a company is 31 March or 31 December, YA 2023 refers to the period starting 1 April 2021 to 31 March 2022 or 1 January 2022 and ending 31 December 2022 respectively.
The basis period for any Year of Assessment (YA) is the financial year ending in the previous year.
Consequences of misunderstanding what is Year of Assessment
Confusion on year of assessment may cause untimely filing of tax return resulting in inefficient performance of the accounting department as well as penalties from the Inland Revenue Authority of Singapore (IRAS).
How Mazars can help you with tax compliance
Preparing the tax computation and the tax return and submit it to the IRAS.
Assist clients to file timely and accordingly within the correct year of assessment.
Click here to download the Doing Business in Singapore 2023 guide
Tax
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Our experts
Elaine Chow Partner, Tax
