Preparing taxes for small business is important to get right so taxes can be minimized. Taxes are a essential part of doing business that entrepreneurs must deal with yearly. You have to start preparing your business accounts towards the last part of the financial year so that they’re prepared for tax filing and form submission. If you want to prepare tax returns for small businesses, then you have to know the following things:
Filing your Tax
The fundamental concept to grasp is that the taxes you pay this time are for what you earned last year. To commence e-filing for the present Year of Assessment (YA) at myTax Portal, you need to know:
How much revenue you received during the Base Period, i.e. previous year from 1 January to 31 December
Your Personal Reliefs, i.e. the reliefs or deductions that you qualify for
Once you’ve cautiously entered the numbers and checked your entries across the various sections, hit submit, print out a copy for your reference.
The Inland Revenue Authority of Singapore (IRAS) does allow you to make edits to a filing, but only once, so after triple checking your updated entry, go ahead and submit the edited tax return.
New companies incorporated in 2017 are required to file the Estimated Chargeable Income (ECI) within three months from the company’s first financial year end. As most companies have their financial year end on 31 Dec, a new company is required to inform IRAS if its financial year end is not 31 Dec.
Making your tax payment
To recognize your tax return, IRAS will send you a Notice of Assessment. It includes the types and amounts of earnings subject to taxation, the assessable income, and the amount of tax due after accounting for the different valid deductions. If you don’t have the same opinion with the tabulation, you can file an Object to Assessment request from the myTax portal within 30 days of getting your NOA.
Though, if all entries are acceptable, then you would decide how you’d want to craft payment. If paying your taxes on time means being a good citizen, knowing your rights to tax-free reliefs will make you an even smarter one.