Key Compliance Deadlines for Small Business Owners
As we begin the new year, we thought it an opportune time to highlight the key compliance deadlines for non-listed small businesses in Singapore. As missing these compliance deadlines comes with hefty late fees and penalties, it is imperative that small business owners take steps to ensure these deadlines are met in a timely manner. In this blog post, we outline the various compliance deadlines from Accounting and Corporate Regulatory Authority of Singapore (“ACRA”) and Inland Revenue Authority of Singapore (“IRAS”) that are applicable to non-listed businesses:
| Description | Deadline* | Remarks |
|---|---|---|
| Estimated Chargeable Income ("ECI") | Within 3 months from financial year end ("FYE") | Your company does not need to file the ECI for that particular Year of Assessment ("YA") if it meets the following criteria: 1. Annual revenue is not more than $5 million for the financial year; and 2. ECI* is NIL for the YA. * The ECI should be the amount before deducting the exempt amount under the partial tax exemption scheme or the tax exemption scheme for new start-up companies. |
| Holding of Annual General Meeting ("AGM") | Within 6 months from FYE | Private companies need not hold an AGM if: 1. Financial statements are sent to members within 5 months from FYE; 2. All members have approved a resolution to dispense with the holding of AGMs;or 3. The company is a private dormant relevant company that is exempt from preparing financial statements. *Subject to certain safeguards |
| Annual Return filing with ACRA | Within 7 months from FYE | Annual Return can be filed only: 1. After an AGM has been held; 2. After financial statements are sent (if company need not hold an AGM); 3. After FYE, for a private dormant relevant company that is exempted from preparing financial statements or that has dispensed with the AGM. |
| Annual Tax Return (Form C-S/C) filing with IRAS |
30 November in the year following the FYE (w.e.f YA2021) | In Singapore, a company is taxed on the income earned in the preceding financial year. |
As an example, an unlisted company incorporated in Singapore with a 31 December financial year end will have the following deadlines to meet for financial year ended 31 December 2020:
YA2021 ECI filing due within 3 months from FYE - 31 March 2021
Holding of AGM due within 6 months from FYE - 30 June 2021
Annual Return filing with ACRA due within 7 months from FYE - 31 July 2021
YA2021 Annual Tax Return filing with IRAS - 30 November 2021
Late Fees and Penalties
With effect from 14 January 2022, ACRA will be implementing a revised penalty framework for late annual lodgments.
Currently, all Singapore incorporated companies and Variable Capital Companies (VCCs) that file annual returns late will be imposed with a late lodgment penalty of $300, while Foreign Companies and Limited Liability Partnerships (LLPs) that file annual returns or annual declarations late are imposed with a late lodgment penalty ranging from $50 to $350.
With effect from 14 January 2022, all companies, VCCs and LLPs that file annual returns or annual declarations late will be imposed with a late lodgment penalty of $300 if the lodgment is filed within 3 months after the filing due date, or $600 if the lodgment is filed more than 3 months after the filing due date. There is no change to the current penalty framework for ad hoc filings. Read more here.
If companies do not file the Form C-S/ Form C before the due date, IRAS may take the following actions:
Issuance of an estimated Notice of Assessment (NOA) (to be paid by the company within one month);
Offer to compound the offence with a composition amount not more than $1,000;
Issuance of a notice [under Section 65B(3)] to the director to submit the required information in the Form C-S/ Form C to IRAS; and/or
The persons responsible for running of the company are summoned to Court.
Read more here.
Speak to your accountant
We understand that keeping track of compliance deadlines on top of managing your daily business operations can be overwhelming at times. If you have any queries, feel free to drop us a message or email us and let us know how we can assist you. Our general response time is one business day.
Above blog post written based on information extracted from ACRA and IRAS websites as of 6 Jan 2021; updated on 26-11-2021.
