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Annual filing with ACRA is an annual compliance requirement of every Singapore company. It is to be completed within six months of a company’s financial year-end. The yearly tax filing deadline according to IRAS is November 30. In 2020, those who do not comply with this requirement will be fined S$300 by ACRA. IRAS may also punish the estimated tax payable.

Companies in Singapore

As with other countries, there are compliance regulations that need to be followed by companies in Singapore – whether active or dormant. Singapore companies need to be especially mindful of requirements that they need to meet every year, especially on taxation matters.

Failure to meet with any of the regulations could lead to dire consequences and heavy fines. Most of the time, companies face penalties not because they willfully ignore regulations but because they are not aware of their responsibilities and the conditions that they need to fulfill. To ensure that you are not given a hefty fine because you were not aware of certain compliance issues, this guide will give you a clearer understanding of the yearly compliance that companies in Singapore need to be aware of.

Singapore companies need to stay compliant with two authorities: namely the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS).

ACRA Yearly Filing

All Singapore companies must meet with compliance regulations as determined by the Accounting and Corporate Regulatory Authority (ACRA) of Singapore.

Annual General Meeting

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 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.

Tax Filling

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.

Company Yearly Compliance Guide FAQs

How ACRA AGMs Affect Taxpayers and Business Owners?2020-12-29T10:17:09+08:00

At every ACRA AGM, the taxation laws may change according to the latest business regulations and decisions of regulatory bodies. The foreign and local entrepreneurs need to understand the budget updates, laws regarding the businesses, economy, and the like. ACRA also helps the government departments make rules related to taxation and businesses. 

I am a SME business owner; do I need to do annual filling with ACRA?2020-12-29T10:16:15+08:00

Yes, annual filing with ACRA is an annual compliance requirement of every Singapore company, including SME. 

My company’s financial year is not 12 months, what should I do?2020-12-29T10:16:35+08:00

If your financial statements cover a period that is more than 12 months as a result of a change in financial year end, you may have to apportion and attribute the adjusted profit/losses to two different YAs. 

Where can I get professional advice for annual compliance?2020-12-29T10:16:50+08:00

You can engage with an expert from Paul Hype Page. Paul Hype Page is a Full Practicing Member of the institute of Certified Public Accountants of Singapore (ICPAS) and registered as a Public Accounting Firm with Accounting and Corporate Regulatory Authority (ACRA)

2021-06-03T11:21:03+08:00January 4, 2015|Comments Off on Company Yearly Compliance Guide

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