All private limited companies must comply with the statutory requirements of Accounting and Corporate Regulatory Authority (ACRA) and Inland Revenue Authority of Singapore (IRAS). Below is a guide on the annual filing requirements for a Singapore company.
Financial Year End
Each company in Singapore has to determine its Financial Year End or FYE. The FYE is the basis for which the deadline for accounting requirements submission is determined and financial statements are prepared.
Table of Contents
Submission of Estimated Chargeable Income
Estimated Chargeable Income or ECI is an estimate of a company’s chargeable income for a Year of Assessment (YA). IRAS requires you to submit an ECI for the Year of Assessment within three months after the financial year ends. It is mandatory to file an ECI regardless of the amount of income. A company with a zero income will file a ‘NIL’ ECI.
Related Read: Overview of Estimated Chargeable Income (ECI) »
What are the benefits of early submission of an ECI?
IRAS Singapore provides the benefit of paying your taxes in installments. To take advantage of this benefit, you need to file your taxes by the stipulated deadlines:
|e-File by the 26th of the month immediately after your accounting year-ends||10 instalments|
|e-File by the 26th of the second month after your accounting year-ends||8 instalments|
|e-File by the 26th of the third month after your accounting year-ends||6 instalments|
Submission of Annual Return
All Singapore companies are required to file an Annual Return with ACRA, which consists of pertinent information of the company and its financial accounts reports. The Annual Return must be submitted within one month of the Annual General Meeting (AGM).
AGM is to be held within 18 months of the incorporation of the company. Subsequent AGMs will be held once every calendar year but no more than 15 months apart.
Preparation of Financial Statements
Every business establishment is required by law to maintain the accounting records in compliance with the Singapore Companies Act and Singapore Financial Reporting Standards. A company is required to prepare the following financial statements:
- Comprehensive Income Statement
- Balance Sheet Statement
- Cash Flow Statement
Submission of Income Tax Return
The deadline for submitting corporate income tax return is at the end of November every year. The statutory tax year is known as the Year of Assessment (YA). The tax calculation for your company’s profits for the current YA is based on gross revenue from the preceding year. Documents to be submitted are
- Tax computation
- Director’s Report
- Form C
Calculate your effective corporate tax rate for the current Year of Assessment. Try it now
Audited or Unaudited Accounts
Singapore companies are required to file audited or unaudited accounts. For a company to be qualified for audit exemption, it must be a small company or part of a group:
To qualify as a small company, it must:
- Be a private company in that financial year; and
- Satisfy at least 2 of the 3 criteria below for the last 2 consecutive financial years:
- Total annual revenue of less than S$10 million;
- Total assets of less than S$10 million;
- Number of employees less than 50.
For a company that is part of a group, it must:
- Qualify as a small company; and
- Have its whole group be a ‘small group’
Submission of Form C to IRAS
The Form C has to be submitted by the end of November every year for the preceding FYE. However, if an ECI had been submitted within three months after the end of its accounting period, it will then provide the company an extension until December.
Directors’ Report (SFRS)
Singapore Companies Act, prescribes accounting standards known as Financial Reporting Standards (FRS) and requires all companies to submit a Directors’ Report. The report consists of unaudited financial statements such as balance sheet and income statements; supporting notes and disclosure of significant accounting policies applied by the company; disclosure of company’s operations; and shareholders and directors’ interests. At Asiabiz, our accounts experts can help you draft a Directors’ Report that is concise yet comprehensive in addressing the key elements.
Form a Singapore company
If you are a foreigner and wish to form a company in Singapore, you are required to hire a professional firm to act on your behalf. The process of forming companies in Singapore is fully computerized and as a result, both the name reservation as well as the actual formation of the entity can be accomplished within 3 hours if all documents are in order. However, if you are residing overseas, the logistics of getting the incorporation documents signed in the presence of a notary public and delivered back to us to form a Singapore Company might take a little longer. Please refer to Singapore Company Incorporation for more information.
Engage our Tax & Accounting Services Now!
Our professionals will help you navigate through the regulatory changes in Singapore. We’ll guide your company with annual filing and ensure compliance is met.