Annual Compliance with Singapore IRAS
This article features the compliance policies and filing requirements that companies operating in Singapore must follow.
The Inland Revenue Authority in Singapore (IRAS) sets specific guidelines and policies for companies operating in the country.
IRAS and Compliance
Staying compliant with the requirements of Inland Revenue Authority in Singapore (IRAS) is mandatory on both active and inactive companies. Failure to meet the said requirements and follow policies will result to negative consequences such as penalties.
The following are the compliance requirements set by the IRAS :
The companies’ income which is also known as the Estimated Chargeable Income or ECI for the year under assessment must be disclosed to the IRAS. Even if the income earned by the company is nil, it must still be disclosed by the company as a zero income.
All companies operating in Singapore must comply with the financial reporting standards applicable in Singapore (SFRS). The companies must present the statement of profit and loss, a statement of Cash Flows, Balance Sheet and Equity Statements in their financial statement. All the relevant records must be maintained by the company for the period of five years.
The tax return must also be filed by the companies before the 30th of November along with relevant documents such as the financial statement which are audited as well as unaudited and the relevant tax calculations.
All the companies incorporated in Singapore are required to present and prepare their financial statement that includes the balance sheet, cash flow statements and the details of the company’s directors, shareholders and business operations along with relevant disclosures.
Companies that have more than twenty shareholders, have corporate shareholders, or with revenue exceeding S$5m the company is required to carry out an audit and submit the financial statement after they are audited.
In the case of the company operating in Singapore fails to keep itself complied with the requirements of IRAS, it has to pay the penalties charged and must be ready to appear in court.