The Result of SG Company Without Annual Returns

2024-05-28

In Singapore, private limited companies only need to do accounting and tax returns once a year. Non listed companies need to conduct annual audit within 7 months after the end of the financial year, while listed companies need to conduct annual audit within 5 months after the end of the financial year.

What will be the consequences if the company in Singapore does not have annual return?

According to the ACRA, If the Annual Return is Overdue:

According to the revised penalty framework, all companies registered in Singapore, variable capital companies (VCCs) and limited liability partnerships (LLPs) will be subject to a late filing fine of S $300 if they submit annual returns or annual statements within 3 months after the end of the reporting year; If the report is submitted more than 3 months after the deadline, the fine will be S $600.

According to the IRAS, If the Tax Return is Delayed:

If the declaration is not submitted before the deadline, the Tax Authority (IRAS) may take the following enforcement measures:

1) Give notice of estimate evaluation. The estimated tax must be paid within 1 month;
2) Provide opportunities for reconciliation (equivalent to a fine, detailed later);
3) Send the 65B (3) notice to the directors of your company, requesting to submit the information required in the company's income tax declaration to the Tax Authority (IRAS);
4) Summon the company or the person in charge of running the company (including the director) to the court.

Note: Dormant companies still need to submit the Dormant Company Declaration Form electronically, unless they have been approved to be exempted from filing corporate income tax returns.

What does IRAS mean by the opportunity for reconciliation?

In fact, it is a fine! The Tax Authority (IRAS) may allow the payment of a certain amount of settlement payments, rather than taking legal action.

According to the company's past compliance records, a settlement amount of no more than S $5000 can be provided for each violation. A notice will be sent to notify the company of the settlement amount. At the same time, the company must pay the settlement amount before the deadline and submit overdue tax returns and documents to avoid litigation.

So, Bosses, what are you waiting for? Please pack up your materials and report to the annual review!

What can we do for you?

1. Preparation of annual financial statements
2. AGM presentation of annual general meeting.
3. Prepare annual tax statements.
4. Company tax reporting.

Established in 2011, Singapore Skyline Business is a comprehensive international business registration and company management service provider. As a registered and reputable business entity with the Ministry of Manpower in Singapore, we specialize in services ranging from family office establishment, GIP investment immigration, company registration, work permit applications, to later-stage PR applications. Feel free to contact us via WeChat (WeChat ID: Skyline-Ng) or WhatsApp us at +65-91328885 for a free consultation.

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