What is Annual Return?
In accordance with the latest directives from the Accounting and Corporate Regulatory Authority (ACRA) of Singapore, all registered companies, irrespective of their nature, are mandated to submit Annual Returns to ACRA within stipulated timelines. Failure to adhere to these submission deadlines may result in financial penalties or even the involuntary strike off of the company. Therefore, it is imperative to understand the specific annual filing requirements and procedures in Singapore.
Below are comprehensive responses to common inquiries:
1. Definition of Annual Return in Singapore:
The Annual Return constitutes an electronic submission to the Accounting and Corporate Regulatory Authority (ACRA) in Singapore. It encompasses crucial information about the company, including the names of directors, secretary, members, and the compilation date of financial statements. As per Singapore's corporate regulations, new companies must conduct their first Annual General Meeting (AGM) within 18 months of registration, overseen by the company secretary. Subsequent AGMs must be held annually, and within one month post-AGM, the company is obligated to submit the Annual Return to ACRA and concurrently file taxes with the tax authorities. This combined process is collectively referred to as annual filing.
2. Annual Filing Deadline in Singapore:
The annual filing period spans six months from the conclusion of the financial year.
3. Detailed Annual Filing Process:
a. Preparation of Annual Financial Statements: This involves compiling financial accounts, profit and loss statements, balance sheets, cash flow statements, and classification notes prepared by the company's accountants. Directors must include director reports and declaration documents.
b. Annual Tax Computation Preparation: This encompasses organizing annual accounting records, estimating annual taxes, and completing tax forms as stipulated by the government tax department.
c. Reporting of Annual General Meeting (AGM): The AGM, held within 18 months of company establishment and subsequently at the end of each financial year, involves presenting financial reports.
d. Company Tax Filing: All companies registered or operating in Singapore are obligated to pay corporate tax. The tax rate has been 17% since 2010, with annual filing requirements.
4. Consequences of Non-compliance:
Failure to adhere to annual filing deadlines results in cumulative fines based on the duration of delay, ranging from SGD 300 to SGD 600. If the fines are not addressed promptly, it may prompt legal action by the government, potentially leading to charges of contempt of court, accompanied by fines, imprisonment, or travel restrictions.