SINGAPORE COMPANY ANNUAL FILING & COMPLIANCE …

[Pages:12]YOUR GUIDE TO DOING BUSINESS TO SINGAPORE

SINGAPORE COMPANY ANNUAL FILING & COMPLIANCE REQUIREMENTS

Connect with us for the latest business updates:

Facebook

Twitter

Google+

LinkedIn

Pinterest

Foreword

Congratulations on your new Singapore company!

Now that you are the proud owner of a Singapore company, we would like to provide you with important information that will help you stay in compliance with the Singapore Companies Act. As officers and shareholders of the company, we encourage you to understand the post-incorporation and annual requirements obligations. There are legal consequences and even prosecution if you fail to stay in compliance with the stipulated regulations. Best regards,

Atin Bhutani Group CEO Rikvin (an In.Corp Group Company)

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 2

Table of Contents

Key Filing Deadlines to Remember

04

Annual Filing Requirements with ACRA

05

Annual Filing Requirements with IRAS

06

Statutory Compliance Matters

07

Hiring of Employees

10

Snapshot of Effective Corporate Tax Rates

11

Snapshot of Personal Tax Rates

12

Overview of Services

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 3

Key Filing Deadlines to Remember

ACRA

FYE

IRAS

Do management accounting for ECI submission

within 3 months of FYE

File Estimated Chargeable Income (ECI)

1

3 Hold Annual General Meeting (AGM)

within 30 days of AGM

4 File Annual Returns (AR)

5 File XBRL Financial Statements

within 6 months of FYE Prepare Director Statements &

2 Financial Report for holding an AGM

November 20_ _

File Corporate Tax Returns (Form C)

6

Consequences for Non-Filing of Annual Returns

Timely FIling

No Penalty

Default Period

up to

S$600

Minimum S$300

Court Summons

up to

S$1,200

Minimum S$600

Arrest Warrant

up to

S$1,800

Minimum S$900

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 4

Annual Filing Requirements with ACRA

Annual General Meeting

Every Company must hold its Annual General Meeting (AGM) every calendar year and its financial statements are to be tabled at the AGM for the shareholders' approval

once in every calendar year 15 months from the date of the last AGM,

whichever is the earliest

Annual Returns

Every company must file an Annual Return (AR), which consists of pertinent information of the company and its financial accounts reports within one month of its AGM.

Filing of Financial Statements in XBRL

Companies are required to file their financial statements in XBRL format during the filing of AR if your company is insolvent (Total Assets - Total Liabilities = Negative Value) or/and has a corporate shareholder for the financial year.

Extension of Time

If your company requires more time to comply with the requirements for preparation of the financial statements for the holding of AGM and the filing of AR, a one-time extension of time of either one or two months before the deadline to hold the AGM can be applied. If your company requires extension of time, please contact us for assistance.

Notification of Changes

It is the company's responsibility to update ACRA of any changes pertaining to the company, such as shareholders' and officers' personal particulars (passport, NRIC / FIN, residential address, etc.), share capital and change of business address, within 14 days. Failure to do so will incur penalties.

Certificate of Compliance

Companies that comply with the filings within the datelines, will have a green tick (?) reflected in ACRA's Online Directory and will be eligible for a Certificate of Compliance whilst those not in compliance with any or all the requirements will receive a red cross (?) and will not eligible for the certificate.

Failure for Non-compliance

Failure for non-compliance with the requirements for holding of AGM and filing of AR will incur penalty and/or court prosecution. The penalties imposed are dependent on the length of default and the number of sections of the Companies Act you have breached.

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 5

Annual Filing Requirements with IRAS

Estimated Chargeable Income

Estimated Chargable Income (ECI) is an estimate of a company's chargeable income for a Year of Assessment (YA). IRAS requires each company to submit an ECI for the Year of Assessment within three months after the financial year ends.

Exemption: You do not need to file for ECI if your company's turnover is less than S$1 million and has no profit to report for the YA.

Note: Failure to submit your ECI on time will result in IRAS issuing you a Notice of Assessment (NOA) based on an estimation of your company's income.

Preparation of Financial Report ? Audited and Unaudited

Companies are required to prepare director(s) statements and financial report in accordance with SFRS each year for ACRA and IRAS for Filing. The report includes financial statements such as balance sheet, income statement, supporting notes and disclosures.

A company must audit its accounts if they do not meet the following 2 out of 3 criteria, to be exempted from audit.

1. The Group Turnover is not more than S$10 million;

2. The Group Gross Assets are not more than S$ 10 million;

3. The Group has not more than 50 employees.

Companies can consider the following two options in preparing the Financial Reports.

Option 1:

Unaudited Report: A company can opt to prepare Compilation Report, if they meet the small group criteria. This saves time and cost in comparison with audits.

Option 2:

Audited Report: A company can opt for voluntary audit even if they meet the small group criteria.

Auditors must be appointed within 3 months from the date of company incorporation.

Tax Return Filing

The filing deadline for corporate income tax return is 30 November. Documents to be submitted are tax computations, tax returns (Form C/C-S) and/or audited/unaudited Reports.

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 6

Statutory Compliance Matters

Financial Year End

Each company in Singapore has to determine its Financial Year End (FYE). The FYE is the completion of an accounting period. A company's FYE does not necessarily need to fall on December 31, and can actually fall on any day in the year.

A company's fiscal year is the same as its financial year. The company's FYE is left for the company to decide. Most companies use either the end of the calendar year (December 31) or the end of any of the quarter (March 31, June 30, or September 30) as their FYE.

Note: It is best to keep the company's FYE within 365 days in order to qualify for the Tax Exemption Scheme for New Start-up Companies (See page 10 ).

Company Registration Number

Singapore Companies Act requires every company to have its registration number known as Unique Entity Number (UEN) on all business letterheads, statements of account, invoices, official notices, publications, etc.

Business Licenses and Permits

Certain business activities in Singapore are subject to regulation by government authorities. Even if your company has been registered, you cannot begin operation unless you have the necessary approval or license from the relevant government authorities.

Singapore GST Registration

Goods and Services Tax (GST) is a tax on the supply of goods and services in Singapore and on the import of goods into Singapore. Goods exported from Singapore and international services provided from Singapore are exempt from GST. The current GST rate is 7%.

Registration Liability

Compulsory Taxable turnover at Registration every quarter is more

than S$250,000

Voluntary You make taxable Registration supplies, only out-

of-scope supplies or exempt supplies of financial services

When to Register

Within 30 days of end of quarter

Anytime

Compulsory Registration for GST

All Singapore companies must register for GST if:

1. Their taxable revenue is more than S$1 million for any 12-month period at the end of any quarter (Mar, Jun, Sep and Dec); or

2. The company is currently making local taxable supplies and the above mentioned revenue is estimated/expected to be more than S$1 million.

Voluntary Registration for GST

You may choose to register for GST voluntarily if most of your supplies are local sales, even if expected sales revenue is below S$1 million. Approval for voluntary registration is at the discretion of the Comptroller in IRAS.

Note: See sample invoice on the next page.

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 7

Statutory Compliance Matters

Sample Invoice

YOUR COMPANY NAME

UEN: _ _ _ _ _ _ _ _ _ _ GST Registration No: _ _ _ _ _ _ _ _ _ _

1 Building Name, #02-03 Street Name, Singapore 456789

TAX INVOICE

Invoice No : _ _ _ _ _ _ _ _

Invoice Date : dd-mm-yyyy

Terms

: C.O.D.

Bill To:

Description

Amount

Tax Code

SAMPLE INVOICE

* This is a computer generated invoice. No Signature is required. * All cheques should be crossed and made payable to 'COMPANY NAME'. * All TT/ bank charges will be undertaken by the sender

Bank Name Bank Address

: [Bank Name] : [Bank Address]

Amount Before GST GST @ 7%

Account Name Account Number Swift Code Bank Code Branch Code

: [Company Name] : XX-X-XXXXXX-X : ________ : ___ : ___

Total Amount Amount Paid Balance Due

Do not include in invoice unless you are GST-registered.

Copyright ? 2017 Rikvin Pte Ltd. All rights reserved.

Last updated 18 Sep 2017 | 8

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download