When you start a business in Singapore, you’ll interact with several key government bodies. While the Accounting and Corporate Regulatory Authority (ACRA) is where your business is legally born, the Inland Revenue Authority of Singapore (IRAS) is the agency you will work with throughout your company’s entire life.
IRAS is far more than just Singapore’s “tax collector.” It is the central authority that administers the nation’s tax policies, manages the Goods and Services Tax (GST), and even disburses critical business grants. Understanding its role, requirements, and digital platforms is essential for legal compliance, financial planning, and operational efficiency.
This guide will provide a clear overview of IRAS’s primary functions and explain what every Singaporean business owner needs to know to manage their tax responsibilities effectively.
Key Takeaways
- What It Is: IRAS is the Inland Revenue Authority of Singapore, the main government agency responsible for administering and collecting all national taxes.
- Core Functions: For businesses, IRAS manages Corporate Income Tax, Goods and Services Tax (GST), and Withholding Tax.
- Your Identifier: IRAS uses your Unique Entity Number (UEN), issued by ACRA, as your primary Tax Identification Number for all business tax matters.
- Digital-First: All tax filing and payments are done electronically through the IRAS myTax Portal, making familiarity with this portal essential.
- Compliance is Key: Businesses must file tax returns accurately and on time — even if there is no tax payable or the business is making a loss.
- Beyond Tax: IRAS also administers government payouts and schemes, such as the Wage Credit Scheme, offering additional support to businesses.
IRAS’s Core Functions for Businesses
While IRAS manages many types of taxes, here are the most important ones that every business owner must understand.
1. Corporate Income Tax
This is the tax paid on the profits your company earns.
- Filing Requirement: All companies in Singapore are required to file an annual tax return (Form C-S or Form C) with IRAS, declaring their revenue and calculating their chargeable income.
- Tax Rate: Singapore is known for its competitive, flat corporate tax rate of 17% on chargeable income.
- Startup Tax Exemption: New startups enjoy significant tax exemptions for their first three years, which greatly reduces their tax burden.
2. Goods and Services Tax (GST)
This is the 9% consumption tax levied on goods and services in Singapore.
- Registration: Your business is required to compulsorily register for GST if your annual taxable turnover exceeds S$1 million. Businesses below this threshold can also register voluntarily.
- Filing: Once registered, you must file a GST F 5 return, usually on a quarterly basis. This form reports the “Output Tax” (GST you collected from customers) and “Input Tax” (GST you paid to suppliers).
- Payment/Refund: You must pay the net GST (Output Tax minus Input Tax) to IRAS by the deadline, or claim a refund if your input tax is higher.
3. Withholding Tax
This applies to businesses that make specific types of payments to non-resident companies or individuals (e.g., for services, interest, or royalties). Your business is responsible for “withholding” a portion of that payment and remitting it to IRAS.
The IRAS myTax Portal: Your Digital Gateway
All your interactions with IRAS will happen online. The IRAS myTax Portal (mytax.iras.gov.sg) is the secure, 24/7 online platform you will use for:
- Filing your Corporate Tax and GST returns.
- Making tax payments (via GIRO, PayNow, or bank transfer).
- Viewing your tax assessment status and account balance.
- Receiving all official correspondence and notices from IRAS.
Logging in is done via your business’s CorpPass (Singpass for Business), which is linked to your company’s UEN.
The UEN: Your Single ID for IRAS
IRAS has simplified business identification by adopting the Unique Entity Number (UEN) as the primary tax identifier for all registered entities. The same UEN you get from ACRA upon incorporation is your Corporate Tax number, your GST number, and your ID for all other IRAS dealings.
Did You Know?
Singapore’s tax system is consistently ranked as one of the simplest, most efficient, and most competitive in the world.
IRAS’s strong focus on digital-first services, clear guidelines, and user-friendly tools like the myTax Portal is a major reason why Singapore remains one of the easiest places globally to start and operate a business.
How a Modern Payment Platform Simplifies IRAS Compliance
While a payment platform doesn’t file your taxes for you, it plays a critical role in automating the record-keeping required for accurate filing.
The most time-consuming part of tax filing is gathering and reconciling your sales data. A modern payment platform like Razorpay simplifies this by:
- Providing a Centralized Dashboard: All your sales revenue, whether from PayNow, credit cards, or digital wallets, is tracked in one place.
- Generating Exportable Reports: You can easily export detailed transaction reports at the end of each quarter. This gives your accountant the exact numbers needed to calculate your total revenue for corporate tax and your total output tax for GST filing.
- Automating Reconciliation: The platform automatically matches sales to settlements, ensuring your financial records are clean, accurate, and always ready for reporting.
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Conclusion
IRAS is a fundamental partner in your business journey. By understanding its role, respecting the filing deadlines for Corporate Tax and GST, and leveraging the myTax Portal, you can ensure your business remains compliant and in good standing. Using modern digital tools, like a payment platform, to keep your sales records accurate and organized is the best way to make your interactions with IRAS simple, stress-free, and routine.
Frequently Asked Questions (FAQs) for Singapore Businesses
What is the difference between ACRA and IRAS?
ACRA (Accounting and Corporate Regulatory Authority) is the national regulator for businesses. This is where you register your company, and it governs your company’s legal structure. IRAS (Inland Revenue Authority of Singapore) is the tax authority. This is where you file and pay your taxes (like Corporate Tax and GST).
I just registered my company. Do I need to register for GST immediately?
No. GST registration is only mandatory when your annual taxable turnover (total sales) exceeds S$1 million. You are not required to register for GST if you are below this threshold, though you may do so voluntarily.
How do I pay my corporate tax to IRAS?
All tax payments are made electronically. The most common methods for businesses are setting up a GIRO arrangement for automatic deductions (which IRAS recommends) or making one-time payments via PayNow or bank transfer through the myTax Portal.
My startup is not profitable yet. Do I still need to file a tax return?
Yes. All registered companies in Singapore must file an annual tax return (Form C-S or Form C) with IRAS every year, even if your company is making a loss or had no business activity at all.
