Company Yearly Compliance Guide
ACRA Yearly Filing
All Singapore companies must meet with compliance regulations as determined by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore.
One of the requirements includes the fact that a company Annual General Meeting (AGM) needs to be held at least once a year. During the AGM, financial statements for the accounting year need to be tabled for shareholder’s approval. The only exception to this requirement would be newly incorporated companies which are given up to eighteen months from the date of incorporation to hold an AGM.
Singapore companies should also note that AGMs can be held anywhere in the world as long as a majority of shareholders are present during the time of the meeting. During the AGM, there are a few important matters to be discussed by the shareholders including the company’s annual financial statement.
Additionally, an important document to be tabled during the AGM would be the independent auditor’s report. However, this only needs to be prepared if the company has a corporate shareholder, more than 20 shareholders and enjoys sales turnover of more than SGD5 million a year.
Additionally, a company’s annual returns need to be submitted within one month of the AGM. Failure to comply with this requirement will result in penalties. However, companies generally can request for a deferment of submission of annual returns.
ACRA would normally award a one-time deferment of either the AGM or submission of annual returns. The time line given would be additional one or two months. Companies who comply with all ACRA requirements will be awarded a Certificate of Compliance.
Singapore Tax Filing
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.
Paul Hype Page & Co. will give you more information and assistance on policy updates, compliance regulations and changes to tax conditions. Corporate tax in Singapore.
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Here, you will find detailed information about Singapore’s Corporate Tax System. Paul Hype Page & Co helps companies with strategic tax planning, tax advisory, and accountancy services.
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IRAS (Singapore’s Tax Authority) governs Singapore’s tax system, helps develop a stronger economy, better environment and a more vibrant economy. All companies, regardless of industry, have a legal duty to pay taxes.
Singapore attracts investments from around the world by reducing its corporate income tax rate and introducing different tax incentives. Singapore has one of the lowest corporate tax rates in the world.
As your company’s Tax agent , Paul Hype Page & Co Chartered Accountant will be fully responsible for the practice of ensuring that these conditions are met. It is important that we be highly qualified and well versed in local regulations and corporate laws, as we are responsible for the upkeep of important company files, tax reports and tax records.