In Singapore, businesses must navigate the regulations of ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore). ACRA focuses on corporate governance and filings, while IRAS handles taxation. Though distinct, their processes are interconnected — errors in ACRA filings can complicate IRAS submissions.
Understanding this connection is key to staying compliant and avoiding penalties.
What ACRA and IRAS Require
Let’s break it down:
ACRA manages:
- Annual Returns
- Updates to company structure (directors, shareholders, share capital)
- Financial statements, often in XBRL format
IRAS handles:
- Corporate tax filings (Form C or C-S)
- Estimated Chargeable Income (ECI)
- Goods and Services Tax (GST), where applicable
While these seem separate, IRAS cross-references ACRA data to validate tax filings. Discrepancies, such as inconsistent financials, can lead to audits, fines, or delays. Consistency is crucial.
The Compliance Workflow
After your financial year ends, here’s how it works:
- Finalize financial statements: These underpin both ACRA and IRAS submissions.
- Submit ECI to IRAS: Due within three months of your financial year-end.
- File Annual Return with ACRA: Due within seven months of your financial year-end.
- Submit Form C or C-S to IRAS: Due by 30 November if your financial year ends on 31 December.
Your financial data must align across all filings. Mistakes or delays in ACRA submissions can disrupt IRAS processing, creating unnecessary challenges.
Where Businesses Falter
Compliance issues often stem from complexity, not intent. Common mistakes include:
- Late ECI filings: Missing the three-month deadline can result in fines or restricted tax options.
- Inaccurate ACRA submissions: Late or incorrect Annual Returns can trigger penalties and affect IRAS reviews.
- Mismatched financials: Inconsistent figures between ACRA and IRAS can lead to audits.
- Assuming exemptions mean no filings: Exempt companies still have filing obligations, even if audits aren’t required.
Proactive planning prevents these errors.
How Company Secretarial Services Help
This is where corporate secretarial services shine. A corporate secretary ensures your ACRA filings are accurate, timely, and consistent with IRAS requirements. They handle:
- Preparing reliable financial statements
- Monitoring key deadlines
- Maintaining statutory records and resolutions
- Liaising with tax professionals
With company secretarial services, compliance becomes seamless and stress-free.
Compliance Timeline Example (FY Ending 31 Dec)
Here’s a sample schedule:
- January–March: Complete financials and file ECI by 31 March.
- April–June: Finalize audited or unaudited financial statements.
- July: Submit Annual Return to ACRA by 31 July.
- August–November: File Form C or C-S with IRAS by 30 November.
Each step builds on the last, making timely action critical.
Closing Thoughts
Singapore’s compliance landscape is rigorous but navigable. By aligning your ACRA and IRAS obligations, you can minimize risks and streamline processes. Corporate secretarial services like those from Entrust ensure your filings are accurate and compliant, letting you focus on growing your business.
Leave the paperwork to the experts.
