Compliance Requirements for Companies in Singapore
Step 1. Accounting
- This involves to recording and accounting for the company’s accounting transactions. The underlying documents for the company’s transactions are required.
- Work usually includes accounting for GST and preparation of GST returns (if applicable) which will be performed on monthly or quarterly basis
- The output from this step are the accounting reports and schedules – Balance Sheet, Profit & Loss account and other accounting schedules and reports. These may be commonly referred to as the “management accounts” and required for preparation of income tax returns and audit (if required) of financial statements (Steps 2, 3 and 6 below).
- For more information on our accounting services, see Accounting Services.
Step 2. Submit Estimated Chargeable Income (“ECI”) to IRAS
- Unless exempted, companies will need to file an Estimated Chargeable Income (“ECI”) to the Inland Revenue Authority of Singapore (“IRAS”) within 3 months of their financial year end date.
- A tax computation is usually prepared based on the management accounts – profit or loss account and balance sheet for the financial year or period
Step 3. Preparation (and Audit) of unaudited statutory financial statements
- Audited or unaudited statutory financial statements required to be prepared under the Companies Act 1967 and may also be required to be submitted to Inland Revenue Authority of Singapore (“IRAS”) as part of a Company’s income tax submission.
- A company’s financial statements are required to be audited unless the company is exempt from audit requirements when certain prescribed conditions are met.
- Unless it qualifies to be considered as dormant, a company is still required to prepare financial statements even if it is exempt from having the financial statements audited. In other words, being exempt from audit requirements does not mean a company is also exempt from preparing financial statements.
- Financial statements are also required to be prepared even if company is exempt from attaching its financial statements as part of its Annual Return to be submitted to ACRA. This means that a company is still required to prepare financial statements even if they are not required to be submitted to ACRA.
- The financial statements to be prepared by a company must comply with the requirements of the company legislation and Financial Reporting Standards (FRS). Compliance with Financial Reporting Standards is required under the Companies Act 1967 and is therefore compulsory.
- The financial statements are required to be sent to shareholders of the Company before its Annual General Meeting (“AGM”) and for preparation of the income tax return to IRAS (Step 6 below). Bigger companies are required to submit its financial statements together with its income tax return (Form C) to IRAS.
- For more information on our auditing services, see Auditing & Assurance Services.
Step 4. Preparation of financial statements in XBRL format (if required)
- Financial statements in XBRL format are compulsory for submission to ACRA unless a company is
exempt. These financial statements in XBRL format are required for filing of Annual Returns to the Accounting and Corporate Regulatory Authority (“ACRA”) for financial years ending after 30 April 2007
Step 5. Hold Annual General Meeting (if required) and submit Annual Return to ACRA
- An Annual General Meeting (AGM) of the members (shareholders) of the Company is required to be held within the stipulated deadlines unless the Company has dispensed with the holding of AGMs or is otherwise exempt from requirements to hold an AGM.
- AGMs are required to be held within 6 months of a Company’s financial year end date. The Annual Return of the Company is required to be submitted to ACRA within 7 months of the Company’s financial year end date. For example, a Company with a financial year end date of 31 December Y1 is required to hold its AGM by 30 June Y2 and file its Annual Return by 31 July Y2.
Step 6. Prepare and submit company income tax returns (Form C / C-S / C-S (Lite))
- Companies are taxed according to Years of Assessment (“YA”s).
- A Year of Assessment (“YA”) is the year following the year in which a Company’s financial year or period ends. The basis period for that Year of Assessment is the financial year or period. For example, the financial years ending on 31 March Y1, 30 June Y1 or 31 December Y1 will be the basis periods for income tax Year of Assessment Y2.
- Income tax returns comprising the Form C and Appendices, Form C-S or Form C-S (Lite) are to be prepared and completed for submission to Inland Revenue Authority of Singapore (“IRAS”).
- An income tax computation is required to be prepared for completion of a Company’s income tax returns (Form C / C-S / C-S (Lite)). The tax computation is based on the accounting reports, schedules and financial statements for the basis period (financial year or period).
- Most, if not all, companies are now be required to file their income tax returns electronically.
- For more information on our services available for this area, see Income Tax Services.
We can help you
Our Firm and its affiliates provide services to address the above company financial reporting and tax compliance requirements. Professional fees are dependent on the scope of volume of work required. These are usually driven by type of industry, business size and complexity. Contact us to discuss our services available for all the above requirements and fees.