Tax filing for corporations must be done by 30 November of any given year.
In Singapore, yearly tax assessments are done for transactions occurring in the accounting cycle preceding years. For example, taxable profits for the period between 1 July 2011 to 30 June 2012 will have to be submitted by 30 November 2012.
Another document that must be filed is the Estimated Chargeable Income, which is the estimate of income which can be charged under taxation requirements. This should be submitted to the IRAS three months after the end of the financial year for each company.
Companies should take note that all accounting records must be kept up to 5 years before they can be destroyed. Accounting records should include Profit and Loss Account, Balance Sheet, Cash Flow Statement and Equity Statement. All these accounting books should follow the requirements set by the Singapore Financial Reporting Standard (SFRS).
While filing their tax returns for each year of assessment, Singapore companies need to be mindful to submit the appropriate forms and documents. As with compliance under ACRA, the IRAS imposes penalties such as fines on companies who do not follow the timeline for submission of ECIs and yearly assessments.
Most of the time, companies’ failure to submit the required documents and financial reports is due to lack of understanding of compliance regulations. Companies who incur penalties for such shortcomings face potential embarrassment because they are not able to meet the requirements of the relevant authorities.
Any Singapore company should take care not to fall into the trap of failing to meet the relevant requirements. It is always good to seek for more information.
There are websites and forums which is always a good avenue for companies who need help with compliance regulations.