How to Easily Register a Singapore Accounting Tax Filing Company? This Guide Has Got You Covered!

How to Easily Handle Accounting and Tax Filing for Your Singapore Company? The Ultimate Guide Is Here!

In the context of global economic integration, Singapore has become the top destination for companies establishing overseas operations, thanks to its stable financial environment, strategic geographical location, and pro-business policies. In recent years, more and more small and medium business owners have chosen to register companies in Singapore to expand their international presence. However, as business operations grow, efficiently and compliantly managing accounting and tax filing has become a key concern for entrepreneurs. This article provides a comprehensive guide to help you smoothly handle accounting and tax obligations for your Singapore company, ensuring compliance while saving time and costs.

1. Understand Singapore’s Tax System

Singapore’s tax system is known for its simplicity, transparency, and low rates. The current corporate income tax rate is 17%. Additionally, newly established companies enjoy a tax exemption of up to SGD 100,000 in taxable income for their first year of operation. Singapore follows a territorial tax principle, meaning only income generated within Singapore is subject to tax, while foreign-sourced income brought into Singapore is generally tax-exempt.

To ensure proper tax planning and avoid overpayment, businesses must clearly understand their income sources and applicable tax rates when preparing accounts and filing taxes.

2. Basic Process of Accounting and Tax Filing

The annual financial and tax process for Singapore-based companies includes the following key steps

1. Accounting

Companies must maintain books in accordance with the Singapore Financial Reporting Standards SFRS, including recording daily income, expenses, assets, and liabilities. Accurate accounting is the foundation of tax compliance.

2. Preparation of Financial Statements

These typically include the balance sheet, income statement, cash flow statement, and notes. According to the Accounting and Corporate Regulatory Authority ACRA, all companies must submit audited or unaudited financial statements annually, depending on their size.

3. Tax Filing

By May 31 each year, companies must submit an annual income tax return to the Inland Revenue Authority of Singapore IRAS, either Form C-S or Form C.

Form C-S applies to companies with annual revenue not exceeding SGD 5 million and offers a simpler process.

Form C is for larger companies and requires audited financial statements and tax computation reports.

4. Tax Audit

IRAS may conduct random audits on certain companies. To avoid complications, businesses should ensure transparent accounting and maintain complete documentation.

3. Three Ways to Handle Accounting and Tax Filing

1. Do It Yourself DIY

If you have basic accounting knowledge and your business is relatively simple, you can handle accounting and tax filing yourself. Singapore offers an online filing system called myTax. Portal, which is user-friendly and suitable for startups. However, this method requires significant time to understand tax laws and accounting standards. Mistakes may lead to penalties or audits, making it a higher-risk option.

2. Hire a Local Accountant

For more established companies, hiring a local accountant or accounting team is a reliable option. They are familiar with local regulations and can offer professional advice on tax optimization. However, this method is more costly and is best suited for companies with complex operations and stable revenue.

3. Outsource to a Professional Service Provider

Many professional service providers in Singapore and China offer one-stop accounting and tax filing services for Singapore companies. These firms typically have extensive experience and can provide end-to-end support, from bookkeeping to financial statement preparation and tax filing. Well-known firms such as RSM Singapore, Baker Tilly Singapore, and domestic companies like Huilian International and Tonghui Management Consultants offer efficient and compliant services. Outsourcing saves time and ensures professional and compliant handling.

4. What to Look for When Choosing a Service Provider

When selecting an accounting and tax service provider, consider the following

1. Qualifications and Experience

Ensure the provider is recognized by ACRA and has substantial hands-on experience.

2. Clear Scope of Services

Different companies have different needs. Clarify whether you require only bookkeeping or a full-service package to avoid unexpected charges later.

3. Transparent Pricing

Some providers offer low initial quotes but include many hidden fees. Consider providers with flat-rate or annual billing models for better cost control.

4. Ease of Communication

For business owners based in China, it’s important that the provider offers bilingual English and Chinese support and responds promptly to inquiries.

5. Recent Policy Changes and Trends as of 2025

According to announcements from IRAS in early 2025, the authority is enhancing its automated review of corporate tax filings using AI technology to improve data comparison efficiency. This means that inconsistencies in accounting or abnormal tax filings are more likely to be flagged and trigger investigations.

Singapore is also promoting paperless filing, encouraging businesses to adopt electronic invoicing and digital accounting systems. Companies should adapt to digital accounting practices early and choose service providers that support electronic processes to improve efficiency and reduce compliance risks.

6. Conclusion

As a global business hub, Singapore offers a favorable tax environment but maintains high standards for compliance. Whether you're a startup or an established company, accurate accounting and timely tax filing are not only legal obligations but also essential for long-term business growth.

Based on your specific circumstances, you can choose the most suitable method for handling accounting and tax matters. If you wish to save time and reduce risks, outsourcing to a professional firm is likely your best option. Regardless of the method you choose, maintaining clear records, timely filings, and strategic tax planning are key to success in Singapore.

We hope this guide provides you with practical assistance and helps you confidently manage accounting and tax challenges while building a successful business in Singapore.