ACRA IRAS Initiative for Seamless Filing in Singapore
The seamless filing is an initiative by ACRA and IRAS to help SMEs automate their financial report preparation and file FS and annual returns in XBRL format quickly and effectively via accounting service providers. The seamless filing solution allows companies to record their transactions in the software and generate statutory filings. This software is linked to ACRA and IRAS via Application Programming Interfaces (APIs), enabling SMEs to file their statutory reports directly without logging in to the ACRA and IRAS portal.
But how has seamless filing helped SMEs, and what are the types of companies encouraged to adopt it?
Delving deeper.
Benefits of Seamless ACRA IRAS Filing
SMEs can take up to 9 hours to prepare and file annual reports and tax returns with ACRA and IFRS. However, with this automated, seamless filing initiative, it takes only half an hour to prepare and file annual reports and financial statements in XBRL format with ACRA and corporate income tax returns with IFRS at a single time. This results in time-saving for the companies, improving productivity and efficiency. Moreover, the errors in the process of annual returns and tax filing are also eliminated due to the auto-generation of accounting data in the software and direct submission to both the agencies.
Companies that Benefit from Seamless Filing
The seamless filing initiative of ACRA and IFRS is most suitable for small companies with simple tax matters and accounting transactions. The software can be used by companies that fulfill the following criteria:-
ACRA Filing
A company can file annual returns and financial statements in simplified XBRL format with ACRA, using this software if:-
- In the current financial years, the company has a revenue of S$500,000 or less
- At the current financial year-end, the company has total assets of S$500,000 or less
- Is not listed in the process of issuing its debt or equity instruments for trading or listed on a securities exchange in Singapore
- Is not listed on a securities exchange board outside Singapore
- Is not a financial institution
IRAS Filing
A company can file tax returns with IFRS, using this software if:-
- The company qualifies to file a Corporate Income Tax Return (Form C-S), i.e., it must:
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- Be incorporated in Singapore
- Derive income taxable at the prevalent corporate tax of 17%
- Have an annual revenue of $5 million or below in the preceding financial year
- Not utilize carry-back of current year capital allowances or losses, investment allowance, foreign trade credit, or group relief
- The company sustains the Singapore dollar as its functional currency
- The company is not an investment holding or a service company
- The company does not own any subsidiaries or joint ventures and has no intangible investment
Eligibility of Productivity Solutions Grant (PSG)
Productivity Solutions Grant is a grant provided by the government to SMEs to assist them financially in going digital. To be eligible for PSG, your SME must fulfill the following criteria:-
- Singapore registered and operating company
- Purchase, lease, or subscription of the IT solutions and equipment must be used in Singapore
- Hold a minimum of 30% local shareholding with group annual sales turnover of the company less than S$ 100 million or less than 200 employees
The Solution for Hassle-Free Preparation of Annual Returns? Outsource!
If you are looking to file error-free reports that comply with the ACRA requirements, outsourcing your filing needs to a trusted third-party XBRL partner can be your ideal choice. With a record of 16+ years in the XBRL industry and experience of more than 200,000 compliance reports globally, DataTracks ensure generating accurate reports within deadlines.
So what are you waiting for? Contact an XBRL expert TODAY @+65-31-582-850 or email at enquiry@datatracks.com.sg to know more about the services they offer.