ACRA’s Late Filing Penalties Now Up to S$600 from Jan 2022 – Know More
Under the annual filing regulations administered by ACRA, every Singapore-incorporated company ranging from Variable Capital Companies (VCC) to Limited Liability Partnership (LLPs) is required to file their annual financial statements within the prescribed timelines.
ACRA, the regulatory authority of Singapore, has always been stringent about the submission timelines. And this time, they have imposed a heavy penalty for late filing of annual lodgements and Ad Hoc filing. Read on to know more about ACRA’s revised penalty framework.
Revised Penalty Framework for Annual Lodgements by ACRA
In its efforts to make compliance straightforward and encourage companies as well as LLPs to take their annual reporting seriously, ACRA has revised the penalty framework.
First things first, it is going to be effective from January 14th, 2022. Next, the question you all have been waiting for – how much?
Based on the company type, below is the revised penalty framework set by ACRA:-
- For Local and Variable Capital Companies – Earlier, the late lodgement fee was imposed at a flat rate of $300, irrespective of the timeline. Now, with effect from January 14th, 2022, the late lodgement fee is $300 if the late lodgement is filed within 3 months after the due date. However, if your company is filing after 3 months of the due date, a penalty of S$600 will be levied.
- For Foreign Companies and LLP – Earlier, the late filing penalties were levied from S$50-S$350. However, as per the revised framework, the late lodgement will be the same as local companies, i.e., S$300 flat if filed within 3 months after the due date and S$600 if filed 3 months after the filing due date.
Revised Penalty Framework for Ad Hoc Filings
- All Ad Hoc filings will remain the same for Local Companies, Foreign Companies, and LLPs, which are 8-tier penalties ranging from S$50-S$350.
- For Sole Proprietorship and Partnership Firms, Adhoc filings will also remain the same, which is 8-tier penalties ranging from S$50-S$250.
- For Variable Capital Companies, on the other hand, $50 will be levied as a late penalty for filing after the due date but within 3 months and $200 for filing after the 3 months. (Earlier, the penalties for VCC were the same as LLPs, foreign companies, and local companies, i.e., 8-tier penalties ranging from S$50-S$350.)
Why is Timely Filing of Annual Lodgement Important?
It’s simple, timely submission of annual reports = timely public disclosure by ACRA.
In addition, timely filing of annual lodgements is an important statutory requirement laid down by ACRA as this ensures timely public disclosure of key information such as the health and financial position of the entity.
To know more about the revised penalty framework, refer to the below link:-
Seeking Help with Filing of Annual Lodgements?
DataTracks, a global leader in XBRL service for ACRA filing, is the ideal choice when it comes to error-free and timely filing of annual returns. Having furnished over 200,000 reports to 19,900 clients worldwide, the eminent professionals at DataTracks have established a niche in delivering high-quality and reliable reports.
To know more about their services, please speak to an XBRL expert @ +65-31-582-850 or email at firstname.lastname@example.org.