The Revised Penalty Framework for annual lodgements to take effect from 30th April 2021 in Singapore.
Under the legislations administered by the Accounting and Corporate Regulatory Authority Singapore (ACRA), all Singapore incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs) are required to file annual lodgement including annual returns and annual declarations with ACRA, within a prescribed timeline. A late lodgement penalty will be imposed against companies, VCCs and LLPs for the late filing of annual returns and annual declarations.
ACRA has revised the penalty framework for late annual lodgements with a simplified 2-tier penalty, to take effect from 30 April 2021. This is part of ongoing efforts to make compliance simple and to encourage companies and LLPs to take their statutory obligations on annual reporting seriously. There is no change to the current penalty framework for the holding of Annual General Meeting and ad hoc filings.
LATE LODGEMENT PENALTY
Under the revised penalty framework, all Singapore-incorporated companies, VCCs and LLPs will be imposed with a late lodgement penalty of $300 if the annual return or annual declaration is filed within 3 months after the filing due date, or $600 if the lodgement is filed more than 3 months after the filing due date. Please refer to the revised penalty framework as set out in the table below.
|Entity Type||Late lodgement penalty (current)||Late lodgement penalty (from 30 Apr 2021)|
|Local companies||Flat rate of $300|
$300 for late lodgement filed within 3 months after filing due date; or
$600 for late lodgement filed more than 3 months after filing due date.
|Variable Capital Companies (VCC)|
|Foreign Companies||8-tier penalties ranging from $50 to $350|
|Limited Liability Partnership (LLP)|
The timely filing of annual lodgement is an important statutory requirement as this ensure timely public disclosure of key information such as the health and status of the entity. All companies and LLPs are advised to file annual lodgement on time to avoid incurring late lodgement penalty.
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