ACRA’s Revised Penalty Framework For Annual Lodgments & Ad Hoc Filings.
What Is Annual Lodgment?
All Singapore-registered firms, Variable Capital Companies (VCCs), and Limited Liability Partnerships (LLPs) are obliged to file yearly lodgment with ACRA, including annual returns and annual declarations, within a stipulated timeline under the regulations administered by ACRA. Late submission of annual returns and annual declarations will result in a late filing penalty for corporations, VCCs, and LLPs.
According to the ACRA, the timeline is as follows:1) Singapore-registered companies and VCCs: Listed and non-listed firms must file Annual Returns (AR) within 5 and 7 months following the end of the financial year, respectively.
2) LLPs must file Annual Declarations (AD) within 15 months of registration, and then once per calendar year within 15 months of the previous filing.Revised Penalty Framework for Annual Lodgment
With effect from January 14, 2022, late submission of annual lodgments by Singapore-incorporated corporations, Variable Capital Companies (VCCs), and Limited Liability Partnerships would incur even higher fines.
Under the 2-tier penalty system, initially announced in December 2020, the penalty for late submission of annual lodgments will be $300 if filed during the first 3 months after the due date; or $600 if filed more than 3 months after the due date.
This rule applies to annual lodgments due on or after January 14, 2022.
However, the present penalty regime continues to apply to annual lodgments due before January 14, 2022.
Refer to the table below:
Revised Penalty Framework For Ad Hoc Filings
The existing penalty mechanism for late filing of ad hoc filings for corporations, LLPs, and businesses, such as changes in entity information or personal particulars of officers or company owners, will continue to apply.
However, with effect from January 14, 2022, the 2-tier penalty scheme for ad hoc submissions by VCCs will now apply to all late filings.
Refer to the table below:
Need For Revision Of Penalty Framework
The penalty framework has been amended as part of ACRA’s continued attempt to encourage voluntary compliance by making fines simpler to understand and calculate.
To avoid the increased penalty, we advise all entities to register their yearly lodgments on time.
Want to file your annual lodgments on time?
Frequently Asked Questions
Annual returns must be filed within five months (for publicly-traded corporations) or seven months (for privately held companies) following the end of the fiscal year.
Businesses with share capital and a branch register outside of Singapore must file annual returns within six months (for listed corporations) or eight months (for non-listed companies) of the end of the fiscal year.
Also, keep in mind that the yearly return can only be filed:
-Following an Annual General Meeting (AGM),
-After financial statements are provided (if a company does not need to attend an AGM).
-For a private dormant relevant firm that is exempted from compiling financial statements or that has dispensed with the AGM.
Annual returns are needed for all businesses, including those that are inactive or dormant. Even though IRAS has excused your company from filing its income tax return, you must file its yearly return with us as long as its status is “live.”
Any penalties due from late submission of annual returns and annual declarations will be reflected and levied via the BizFile+ and VCC portals at the time of submission.
