Annual Filings for Singapore Companies
Preparation of Financial Accounts
Based on your company’s financial activities during the accounting year, you must prepare your annual financial accounts in accordance with the Financial Reporting Standards of Singapore. If you have medium to large number of accounting transactions each month, we highly recommend that you perform monthly bookkeeping to keep your ledgers in order. If however, the number of monthly financial transactions is relatively small, you can perform bookkeeping on a quarterly or annual basis. The financial accounts should consist of Statement of Comprehensive Income (i.e. Profit and Loss Account), Statement of Financial Position (i.e. Balance Sheet), Cash Flow Statement and Statement of Changes in Equity.
Filing of Estimated Chargeable Income (“ECI”)
Singapore companies are required to declare the revenue amount and Estimated Chargeable Income (“ECI”) by filing an ECI form with Inland Revenue Authority of Singapore (“IRAS”) within 3 months of the financial year end of the company.
You do not need to file an ECI for your company if it is NIL and if your company meets the following annual revenue threshold for the Waiver of Requirements to File ECI :
- Annual Revenue not exceeding S$1 million for companies with financial years ending in or before June 2017; or
- Annual Revenue not exceeding S$5 million for companies with financial years ending in or after July 2017. If your company’s ECI is more than zero, it will be required to file its ECI regardless of annual revenue.
Audit of Financial Accounts
Once the financial accounts are ready, your company must be required to have its accounts audited unless your company is exempted from audit requirements. Companies that are exempted from audit requirements are not required to have their accounts audited. Instead, they will prepare unaudited accounts for purposes of Annual General Meetings and filing with ACRA.
Annual General Meeting (“AGM”)
Each Singapore company must hold an Annual General Meeting (“AGM”) once every calendar year. The following general rules apply to AGMs:
- The first AGM must be held within 18 months of its incorporation;
- No more than 15 months may lapse between subsequent AGMs;
- Accounts presented at the AGM shall be made up to a date not more than 6 months before the AGM;
- Private companies are allowed to dispense with AGMs if at a general meeting of the company, a resolution to that effect is passed by all members with voting rights.
Filing of Annual Return with ACRA
Each Singapore company must lodge an Annual Return (“AR”) with ACRA within 1 month of its AGM. Particulars of the company officers, registered address and auditors (if applicable) must be included in the AR.
Filing of Annual Tax Return with IRAS
Each Singapore company must file its annual tax return with IRAS by November 30. Singapore adopts the preceding year basis for taxation. The profits for the financial year ending in the preceding year will form the basis for filing the tax return in the current year.
Note that the directors of the company are responsible and accountable for complying with the annual filing requirements. Failure to comply with the statutory compliance requirements is an offence and may result in fines or prosecution.