By Yang Huiwen

THE taxman has urged small companies to check out the ways they can save on their tax bills when they file their returns ahead of the Nov 30 deadline.

The Inland Revenue Authority of Singapore (Iras) said many of the more than 120,000 corporate taxpayers may be unaware of the schemes and incentives that can shave several percentage points off a firm's effective tax rate.

'Based on our findings, a number of them, especially the small- and medium-sized enterprises, may not have availed themselves of the tax exemptions and deductions under the laws when they file their tax returns,' said Iras yesterday.

'Some companies are not familiar with the recently announced tax exemptions and concessionary schemes.'

It outlined some of the more common corporate tax concessions and changes in tax rules at a briefing yesterday.

As part of measures introduced this year, companies can claim deductions for renovation works and commercial vehicles purchased for business use.

To help companies improve cash flow, the loss carry-back relief scheme announced in this year's Budget allows companies to carry back any trade losses of up to $200,000 to the previous three years, for a tax refund.

But Mr Tony Seow, managing director of boutique catering firm Purple Sage, said he was unaware of some of the newly introduced tax deduction schemes, and that 'so far, there seems to be little talk about it'.

He said the firm did some renovations when it moved to a cheaper location a few months ago, and that he would be interested in finding out whether they qualify for tax deduction.

Mr Winston Loh, founder of shipping broker Winstonnage Agencies, said: 'There are a lot of incentives available for small companies out there and it would be good if there was a one-stop website we could access to keep ourselves updated.'

And Mr Lawrence Leow, president of the Association of Small and Medium Enterprises (Asme), said: 'In the last one to two years, there have been various schemes introduced. I agree a lot of companies are still not familiar with these and it is good to make smaller firms aware of some of the benefits.

'Given that there are a number of new start-ups every year, it should be an ongoing process to keep them aware of the schemes available.'

He said Asme will consider collaborating with Iras to arrange more seminars.

About 20,000 companies are incorporated every year, according to Iras. An enhanced tax exemption scheme for start-ups allows them to have up to $200,000 of income exempt from tax for the first three years.

Iras previously conducted seminars on an ad-hoc basis, including when it received invitations from trade chambers, said Ms Chiam Yah Fang, assistant commissioner of Iras' corporate tax division.

'Now we recognise there's a need out there, and proactively organise in-house seminars for companies' on top of working with external organisations, she said.

Iras has conducted eight free seminars for companies on tax matters since June and another three will be held this month.

It has also reached out to about 1,000 company representatives this year, said a spokesman. It attracted more than 1,800 company representatives to 13 seminars last year.

Companies must fill in the main tax return, known as Form C, which is issued to firms in March.

Companies can then submit the completed form together with the relevant financial documents either by post or electronically.

Failure to file Form C on time is an offence and directors may be fined up to $1,000.

Deductions companies can claim

• From this year, companies can claim deductions for costs incurred on renovation or refurbishment works carried out between Feb 16 last year and Feb 15, 2013.

Claims are capped at $150,000 in equal portions over three years - a maximum of $50,000 per year.

• Companies that buy commercial vehicles not exceeding 3,000kg for business use can claim capital allowance over three years, compared with six years previously.
• Trade losses or unutilised capital allowances for the year, up to $200,000, can be carried back to the previous three years, under the loss carry-back relief scheme announced in this year's Budget.
• Staff training costs are deductible. If firms receive government grants, only the actual costs they bear are deductible.
• Retrenchment costs incurred in streamlining operations are deductible.

This article was first published in The Straits Times.