Penalty Framework for Annual Lodgments Revised – Here’s What You Need to Know
All Singapore based companies are required to file their annual returns after the end of the financial year. However, if companies are unable to adhere to this deadline, a penalty for late filing is imposed (Limited Liability Partnerships (LLPs), and Variable Capital Companies (VCCs)).
Recently, in its efforts to make compliance simple and encourage companies as well as LLPs to adopt a more serious approach towards reporting their financial statements, ACRA revised its late penalty filings.
Let’s understand this revised framework in detail.
Revision of ACRA Late Filing Penalty
With effect from April 30th 2021, ACRA will be changing the late penalty framework for annual lodgments. Here’s a comparison between what it was and how it is going to be:-
For Local Companies and Variable Capital Companies
Earlier, the late penalty was imposed at a fixed rate of $300 regardless of the date of filing.
As per the revision, now, if a company or VCC files within 3 months after the due date, a $300 penalty will be levied. However, if filed after more than 3 months, the penalty amount will double to $600.
For Foreign Companies and LLPs
Up until now, an 8-tiered penalty ranging from $50 – $350 was being levied to late filing of annual lodgements.
However, as per the new regulations, the penalty for the late filing of annual lodgments will be the same for foreign companies and LLPs as for the local companies and VCCs – $300, if filed within 3 months of the due date and $600, if filed after 3 months of the due date.
Note: The revised penalty framework is only applicable for late filing of annual lodgements. Rest of the filing penalties remain the same.
What Happens if You’re Already Late?
The revised penalty regulation will come into effect from April 30th 2021. As such, it is recommended to file any pending annual lodgements before then.
You can also submit an appeal for waiver of the penalty by submitting a representation form to ACRA. However, please note that ACRA usually approves such a waiver only in special or urgent circumstances.
What Are You Waiting For?
Partner up with a reputable outsourced service provider like DataTracks and avoid missing the deadline altogether. At DataTracks, the team of experts has over 16+ years of experience and can help your company with financial statement and XBRL preparation. So you can focus on your business and outsource all your ACRA-related compliance worries to DataTracks.
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