New rules require all companies in Singapore to e-file their
withholding tax and PIC cash payout application. Hardcopy
applications will no longer be accepted on or after the effective
From 1 July 2016, companies will only be able to file withholding tax to be paid to the Inland
Revenue Authority of Singapore (IRAS) electronically via the myTax
portal. Non-compliant applicants will be penalised under Section
94(2) of the Income Tax Act.
The change is in line with the government's goals for
effective delivery of public services, and aligns the Smart Nation vision to harness technology and
The following features are available with e-filing:
No original signature is required,
which can avoid delay in the submission of various tax forms
Cost saving on expenses such as
courier charges, postage and papers
The ability to save draft before
In addition, the e-filing has the following benefits:
In-built validation checkto verify
certain information fields
In-built formulaeto auto-compute
Auto-computationof tax and penalties
From 1 August 2016, all PIC cash payout applicants, including
companies, partnerships and sole-proprietors, are also required to
e-file the PIC cash payout application. And,
after the effective date the PIC conversion rate for qualifying
expenditure will be reduced from 60% to 40%. Any qualifying
expenditure incurred before or after 1 August will need to
segregate the claims into these two categories:
a) Expenditure incurred before 1 August 2016 at 60% conversion
b) Expenditure incurred on or after 1 August 2016 at 40%
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On January 24, 2017, the Central Board for Direct Taxes issued a circular enumerating the Guidelines for Determining the Place of Effective Management (hereinafter referred to as "POEM Guidelines") of a company.
The proposed law further provides that such adjustment amount, if not repatriated into India within the prescribed period, the same shall entail a notional interest which would also be subject of tax.
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