Singapore company compliance

When the financial year of a company registered in Singapore ends the below requirements are requested by ACRA, the Company House of Singapore:

  1. Estimated Chargeable Income (ECI Form): Needs to be submitted 3 months after the end of the financial year. To complete it an estimate of the revenue of the company for the financial year is requested.
  2. Annual General Minutes & Annual Returns: To prepare these, book keeping is needed and to prepare unaudited accounts or audited accounts. The deadlines for these documents for the first financial year are based on the date of the company’s Incorporation. For the next years the dates are fixed.
  3. C – Form: This is the Corporate Tax Form requested by Inland Revenue of Singapore. This is submitted on a yearly basis in November.

The requirements by Singapore Authorities are compulsory and if the requested forms / documents are not submitted on time the company is charged with penalties and court summons.

Fees for Accounting Department:

Description of Service:Fee (S$)
Preparation and Submission of ECI Form* S$265
Appointment / Change of auditors* S$160
Preparation of Unaudited Financial Statements (dormant company) S$350
Conversion of Financial Statements to XBRL format (when applicable)* S$590
Book Keeping Set Up Fee (applicable to all companies) S$450
Book Keeping (dormant company) S$450
Book Keeping ( active company – to be determined) Quotation provided based on number of transactions & turnover
Preparation of Unaudited Financial Statements (active company) S$700
Audit for active company(Estimate – conditional on turnover, number of transactions & agreements etc.) From S$2,000
Submission of Financial Statements to ACRA and of C Form for a dormant company* S$695
Submission of Financial Statements to ACRA and of C Form for an active company* S$800

The fees of the Accounting Department are based on the SGD figures (Singapore Dollar)

Documents Needed from Clients for Book Keeping:

Part A

Applicable for all Jurisdictions for Newly Incorporated Companies:

  1. Detailed description of the company’s activities.
  2. Bank Statements for the financial year for all accounts that are under the company’s name.
  3. Sales Invoices issued from the company during the financial year.
  4. Purchases Invoices received from the suppliers of the company during the financial year.
  5. Any expense receipts issued under the company’s name.
  6. Any agreements and contracts signed by the company during the financial year.

Part B

Documents needed from companies that were transferred from another agent:

Singapore Jurisdiction:

  1. All the documents that are mentioned above in Part A.
  2. A set of the submitted financial statements of the previous financial year that were submitted to ACRA.
  3. A copy of the Annual Return by ACRA – proves the submission of the accounts.
  4. A copy of the Notice of Assessment – C Form.
  5. A copy of the Notice of Assessment – ECI Form.

 

This guide highlights the annual filing requirements for all Singapore Exempt Private Company (EPC) and private limited company. This is applied to both active and inactive private limited companies.

 

Conversion of financial accounts into XBRL format (cont’d)

Most of the companies need to file their financial statements in the format of eXtensible Business Reporting Language (XBRL). This is a standard implemented by ACRA to present financial statements.

 

Filing of Estimated Chargeable Income (ECI)

All Singapore companies are required to declare annual revenue amount and Estimated Chargeable Income (ECI) by filing ECI form with Inland Revenue Authority of Singapore (IRAS) within 3 months of the financial year end for the company.

Under administrative concession of IRAS, for companies with financial year ending October 2012 or after, ECI will not need to be filed if:

-       Annual revenue is not more than S$1 million for the financial year, and

-       ECI is NIL.

 

Filing of annual tax return

All Singapore companies must file its annual return with IRAS by 30 November. Singapore adopts the preceding year basis for taxation. The profits for the financial year ending in the preceding year will form the basis for filing the tax return in the current year.

The responsibilities and accountabilities for complying with the annual tax filing requirements are with the directors of a company. Failure to comply with the statutory compliance requirements is an offence and may result in fines or prosecution.

 

Withholding Tax (WHT)

Withholding Tax (WHT) is a tax suffered by a non-resident on income derived or deemed to be derived from Singapore. It is a tax deducted at source at a certain rate by the payer and remitted to IRAS within a stipulated deadline.

Type of payments to non-residents

Withholding tax

Interest, commissions, fees and other payments in connection with any loan or indebtedness

15%

Royalty for the use of movable property

10%

Know-how payments for the right to use scientific, technical, industrial or commercial knowledge or information

10%

Rent or other payments for the use of movable property

15%

Management and technical services fees

17%

Distributions made by a trustee of any listed real estate investment trust

10%

Proceeds from any sale of real property where the non-resident seller is a real property trader

15%

Non-resident directors’ remuneration or fees

20%

Non-resident entertainers

10%

Professional fees

15% or 20%

 

Where an Avoidance of Double Taxation Agreement (DTA) is applicable, the rates specified in the DTA of the respective countries would apply. If the rates in the DTA is applying, Certificate of Residence (COR) from the non-resident is required to be submitted to IRAS in order to prove that it is a tax resident of the treaty country.

WHT must be made to IRAS by 15th of the second month from the date of payment to the non-resident. The date of payment is defined as the earliest of the following dates:

-       When the payment is due and payable based on the agreement or contract. In the absence of any contract or agreement, the date of invoice will be deemed the date of payment (credit terms should not be taken into consideration); or

-       When payment is credited to the account of the non-resident or any other account(s) designated by the non-resident; or

-       The date of actual payment.

The date of payment for director’s fees is the date they are voted and approved (example, company’s AGM).

 

Important dates

Summarise important submission dates or deadlines for Singapore companies to take note are as follows:

  Filing Deadline

Authority

Annual General Meeting (AGM) Within 6 months of the financial year end of a company

ACRA

Annual Return (AR) Within 1 month of its AGM

ACRA

XBRL Within 6 months of the financial year end of a company

ACRA

Estimated Chargeable Income (ECI) Within 3 months of the financial year end of a company

IRAS

Annual Tax Return 30 November

IRAS

Withholding Tax (WHT) 15th of the second month from the date of payment

IRAS

 

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