In Singapore, businesses must comply with regulations from ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore). ACRA oversees corporate governance and filings, while IRAS manages tax obligations. Though separate, their systems are interconnected — errors in ACRA submissions can impact IRAS filings.
Aligning these processes is essential for seamless compliance and avoiding penalties.
ACRA and IRAS: Their Roles
Here’s what each authority handles:
ACRA requires:
- Annual Returns
- Updates to company details (directors, shareholders, share capital)
- Financial statements, often in XBRL format
IRAS oversees:
- Corporate income tax filings (Form C or C-S)
- Estimated Chargeable Income (ECI)
- Goods and Services Tax (GST), if applicable
These tasks may seem distinct, but IRAS uses ACRA data to verify tax submissions. Inconsistent financials can lead to audits, fines, or delays. Consistency is crucial.
How Compliance Works
After your financial year ends, here’s the sequence:
- Prepare financial statements: These form the basis for both ACRA and IRAS filings.
- File ECI with IRAS: Due within three months of your financial year-end.
- Submit Annual Return to ACRA: Due within seven months of your financial year-end.
- File Form C or C-S with IRAS: Due by 30 November for a financial year ending 31 December.
Your financial data — revenue, expenses, profits — must align across all submissions. Mistakes or delays in ACRA filings can disrupt IRAS processing, creating compliance issues.
Common Compliance Pitfalls
Many businesses face challenges due to the complexity of compliance. Frequent errors include:
- Missing ECI deadlines: Failing to file within three months can result in fines or lost tax instalment options.
- Late or incorrect ACRA filings: Inaccurate Annual Returns can trigger penalties and affect IRAS assessments.
- Inconsistent financials: Mismatched figures between ACRA and IRAS can prompt audits.
- Misunderstanding exemptions: Exempt or dormant companies still have filing obligations, even without audits.
Proactive planning prevents these mistakes.
The Role of Company Secretarial Services
This is where company secretarial services make a difference. A corporate secretary ensures your ACRA filings are accurate, timely, and aligned with IRAS requirements. Their tasks include:
- Preparing consistent financial statements
- Tracking critical filing deadlines
- Maintaining statutory records and resolutions
- Coordinating with accountants or tax agents
With corporate secretarial services, compliance becomes efficient and stress-free.
Sample Compliance Timeline (FY Ending 31 Dec)
Here’s a practical schedule:
- Jan–Mar: Finalize financials and file ECI by 31 March.
- Apr–Jun: Prepare audited or unaudited financial statements.
- Jul: Submit Annual Return to ACRA by 31 July.
- Aug–Nov: File Form C or C-S with IRAS by 30 November.
Each step is interconnected, making timely action essential.
Final Thoughts
Singapore’s compliance requirements are strict but manageable with a strategic approach. By treating ACRA and IRAS obligations as a unified process, you can minimize risks and streamline filings. Corporate secretarial services like those from Entrust ensure accuracy and consistency, allowing you to focus on your business.
Let professionals handle the compliance details.
