Do I have to file corporate tax for YA 2020?

December is usually the time to file corporate tax for business owners. The filing deadline for corporate tax is the 15th of December 2020 for the Year of Assessment 2020 (YA2020). Hard copy filing is no longer available, thus all corporate taxes have to be e-filed. There may be some confusion among us about corporate tax filing and personal income tax filing. Corporate tax filing occurs at the end of the year while personal income tax filing happens in April annually.

Take note of your financial year-end

Companies that have their financial year-end (FYE) in 2019, will need to file corporate tax for YA 2020.

If a company’s financial year period is 1st July 2018 to 30th June 2019, it needs to file its corporate tax for the same period, for YA 2020 by 15th December 2020.

A different example would be, if a company’s financial year period is 1st April 2019 to 31st March 2020, it will not need to file its corporate tax for the same period as the closure of its financial year did not happen in 2019. However, the company will need to file corporate tax for this same period, for the Year of Assessment 2021.

For companies with their Unique Entity Number beginning with 2019, they do not need to file corporate taxes for the YA 2020.

However, there are some exceptions you need to take note of.

For example, if the company’s incorporation date is in 2019 but its financial year-end (FYE) is in 2019, it is necessary to file corporate taxes for YA 2020. A newly incorporated company in 2019 may choose to have its first financial year shorter than 365 days.

As a guide, if your FYE is within the calendar year of 2019, you need to file your corporate tax for YA 2020 by 15 December 2020. You can be penalised if you fail to do so.

If you are still unsure about your obligations for corporate tax filing, you may contact a registered ACRA filing agent.

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