On 14 January 2022, penalties will rise from S$300 for late reporting to S$600 for submitting yearly statutory filings for Local Companies, Variable Capital Corporations (VCCs), and Limited Liability Partnerships. If you fail to submit your application within three months of the deadline, you will be fined S$300.
The New Rules for You
The new rules will go into effect on January 14, 2022, and will apply to any annual filings that are due on or after that date. There is still an S$300 late filing penalty for annual filings that are due before that date. Please see the following table for further details.
For the firms
Every firm, including those that have long since ceased operations, is required by law to submit an Annual Return (AR). Prior to their Annual General Meeting (AGM), companies may be obliged to present their financial statements (FS) to members in order to file an AR (AGM). In certain cases, the AR and the FS must be submitted in XBRL format. For New penalties for late filing of Annual Returns from 14 January 2022 it is essential.
It is possible to request an extension from ACRA for a local firm of up to 60 days and up to 2 months for a foreign corporation. In addition to the S$200 application fee, you must submit your application before the deadline for annual filing (it is suggested that you submit your application more than 14 working days prior to the deadline).
- On January 14, 2022, the new rules will go into effect, and they will be applicable to all annual lodgments afterwards. If you fail to file your annual tax return by the due date, you will face a penalty of S$300. Please refer to the table below for further details.
- The filing of an Annual Return (AR) is a legal obligation for all corporate entities, including those that have gone bankrupt. Prior to their Annual General Meeting (AGM), companies may be obliged to present their financial statements (FS) to their shareholders in order to file an AR (AGM). In certain cases, the AR and the FS must be submitted in XBRL format.
- It is possible to request an extension from ACRA for a local firm of up to 60 days and up to 2 months for a foreign corporation. In addition to the S$200 application fee, you must submit your application before the deadline for annual filing (it is suggested that you submit your application more than 14 working days prior to the deadline).
When it comes to legal obligations, company directors are responsible for ensuring that their organizations meet such obligations, such as prompt submission of the AR. Directors and the company as a whole might face legal action if they don’t comply. Beyond that, the Companies Act prohibits directors from retaining office if they commit three or more filing-related offences in the course of a five-year term. If a company does not register its AR with the ACRA, the ACRA may remove them from the list.
Conclusion
For all ad hoc filings by companies, the present penalty system for late submissions, such as a change in entity information, will continue to apply. As of January 14, 2022, VCCs will face a two-tiered penalty system for any late filings they submit in the course of their operations.
