Staying Compliant with IRAS
Do I have to comply with the Inland Revenue Authority of Singapore (IRAS)?
Yes. All Singapore private limited Companies must be compliant with the Inland Revenue Authority of Singapore (IRAS). Filings are mandatory for both active and dormant Singapore companies. Failing to meet IRAS compliance requirements can have consequences.
What compliance requirements does the IRAS have?
These are the requirements you need to meet to comply with the IRAS:
The Estimated Chargeable Income is an estimate of a company’s chargeable income for a Year of Assessment (YA). Each company must submit an ECI for the YA within 3 months after the financial year ends. You must file an ECI regardless of income. A company with zero income will file a ‘NIL’ ECI.
All Singapore Companies must prepare Accounting Records, which must consist of a Profit and Loss Account, a Balance Sheet, a Cash Flow Statement, and an Equity Statement in accordance with the Singapore Financial reporting standard (SFRS). The accounting records must be kept for 5 years.
Tax returns must be filed too. The filing deadline for corporate income tax return is 30 November. Documents to be submitted are audited or unaudited Report and tax computation (Form C).
Every company has to submit a Financial Report. The report consists of financial statements such as a balance sheet and income statements, supporting notes and disclosure of significant accounting policies applied by the company, disclosure of the company’s operations, and shareholders’ and directors’ interests.
A Company must submit an audited report if it has a corporate shareholder, sales turnover exceeds S$5 million or it has more than 20 shareholders.
What happens if my company fails to comply with IRAS requirements?
Non-compliance with the above requirements will incur penalty and/or court prosecution.