ACRA’s Revised Late Filing Penalty Framework for Annual Returns in Singapore

Under the regulations set forth by ACRA, every company incorporated in Singapore, from Variable Capital Companies (VCCs) to Limited Liability Partnerships (LLPs), must submit their annual financial statements within specified deadlines. ACRA, Singapore’s governing body for corporate entities, enforces strict adherence to these filing deadlines. In its latest update, ACRA has introduced a stringent penalty structure for the late submission of annual returns and Ad Hoc filings.

This adjustment in the penalty framework underscores the importance of timely compliance with the filing requirements, imposing substantial late filing penalties and late lodgement fees for delays in submitting annual returns. The revised penalties highlight ACRA’s commitment to ensuring diligent financial reporting and emphasize the financial repercussions for companies that fail to meet the mandated timelines for their annual return filings and the associated fees in Singapore.

Revised Penalty Framework for Annual Lodgements by ACRA

In its efforts to make compliance straightforward and encourage companies as well as LLPs to take their annual reporting seriously, ACRA has revised the penalty framework.

First things first, it is going to be effective from January 14th, 2022. Next, the question you all have been waiting for – how much?

Based on the company type, below is the revised penalty framework set by ACRA:-

For Local and Variable Capital Companies – Earlier, the late lodgement fee was imposed at a flat rate of $300, irrespective of the timeline. Now, with effect from January 14th, 2022, the late lodgement fee is $300 if the late lodgement is filed within 3 months after the due date. However, if your company is filing after 3 months of the due date, a penalty of S$600 will be levied.
For Foreign Companies and LLP – Earlier, the late filing penalties were levied from S$50-S$350. However, as per the revised framework, the late lodgement will be the same as local companies, i.e., S$300 flat if filed within 3 months after the due date and S$600 if filed 3 months after the filing due date.

Revised Penalty Framework for Ad Hoc Filings

All Ad Hoc filings will remain the same for Local Companies, Foreign Companies, and LLPs, which are 8-tier penalties ranging from S$50-S$350.
For Sole Proprietorship and Partnership Firms, Adhoc filings will also remain the same, which is 8-tier penalties ranging from S$50-S$250.
For Variable Capital Companies, on the other hand, $50 will be levied as a late penalty for filing after the due date but within 3 months and $200 for filing after the 3 months. (Earlier, the penalties for VCC were the same as LLPs, foreign companies, and local companies, i.e., 8-tier penalties ranging from S$50-S$350.)

The Importance of Timely Filings and the Role of DataTracks in XBRL Compliance

Ensuring the timely filing of required documents with the Accounting and Corporate Regulatory Authority (ACRA) is paramount for companies operating in Singapore. Late submissions can lead to significant late lodgement fees, affecting a company’s compliance record and financial standing. Beyond meeting deadlines, companies must also adhere to specific filing requirements, notably the XBRL filing requirements for financial statements.

XBRL Filing Requirements and Reporting

XBRL, short for eXtensible Business Reporting Language, is a universal standard aimed at enhancing the precision and effectiveness of business data interchange. The Accounting and Corporate Regulatory Authority (ACRA) of Singapore has adopted this framework, requiring most companies to submit their financial statements in XBRL format. This requirement capitalizes on the benefits of XBRL, such as streamlining financial reporting and improving the accessibility and clarity of business financial information.

Understanding XBRL Format Types: Simplified vs. Full

ACRA mandates two primary XBRL formats to accommodate the varying needs of companies: a simplified version and a comprehensive version. These variations are designed to align with the specific characteristics of companies, such as their operational complexity, size, and the intricacies of their reporting obligations. The streamlined version is ideal for smaller entities or those with less complex reporting needs, offering a basic but efficient approach to compliance.

In contrast, the full version is tailored for larger, more complex organizations requiring detailed reporting. This dual-format approach ensures that all companies, regardless of their scale or the complexity of their operations, can meet their XBRL reporting obligations effectively. For a deeper understanding of the nuances between these XBRL formats in Singapore, consider exploring the insights available at DataTracks’ blog through this link: Understanding XBRL Format Types in Singapore.

How DataTracks Assists in Meeting ACRA’s XBRL Compliance

In the realm of financial compliance and reporting, DataTracks stands out as a vital partner for companies navigating the XBRL filing requirements mandated by the Accounting and Corporate Regulatory Authority (ACRA). Specializing in the conversion of financial statements into the required XBRL format, DataTracks significantly simplifies the compliance process for companies. This is particularly valuable given the complexities of adhering to the specific IFRS XBRL (International Financial Reporting Standards) Taxonomy and the ACRA Taxonomy.

DataTracks has established itself as a leader in the field of financial compliance and reporting, marking a significant footprint in the industry. Over the span of 19 years, the company has expanded its operations across 26 countries, serving a diverse client base that includes 28,000 clients worldwide.

Throughout its journey, DataTracks Singapore has successfully prepared and delivered over 400,000 reports, showcasing its extensive expertise and commitment to facilitating seamless compliance with financial reporting standards such as XBRL.

This vast experience and global reach underline DataTracks’s capability in helping companies navigate the complexities of financial reporting and compliance, including meeting ACRA’s XBRL filing requirements efficiently.

Why is Timely Filing of Annual Lodgement Important?

It’s simple, timely submission of annual reports = timely public disclosure by ACRA.

In addition, timely filing of annual lodgements is an important statutory requirement laid down by ACRA as this ensures timely public disclosure of key information such as the health and financial position of the entity.

To know more about the revised penalty framework, refer to the below link:-

https://www.acra.gov.sg/announcements/file-your-annual-lodgments-on-time

Seeking Help with Filing of Annual Lodgements?

DataTracks, a global leader in XBRL service for ACRA filing, is the ideal choice when it comes to error-free and timely filing of annual returns. Having furnished over 200,000 reports to 19,900 clients worldwide, the eminent professionals at DataTracks have established a niche in delivering high-quality and reliable reports.

To know more about their services, please speak to an XBRL expert @ +65-31-582-850 or email at enquiry@datatracks.com.sg.

Frequently Asked Questions on ACRA’s Late Filing Penalties

1. What are the penalties for late filing with ACRA?

The penalty for late filing with ACRA depends on the type of filing and the time it is filed after the due date. Here’s a summary:

Annual Lodgments (For filings due on or after January 14, 2022):
- $300 if filed within 3 months of the due date.
- $600 if filed more than 3 months after the due date.
Ad hoc Filings:
- Variable penalty structure for different entity types and filing types. Refer to ACRA’s website for details.

2. How can I check if I have any outstanding ACRA filings?

You can check for outstanding filings on your BizFile+ account or the VCC portal, depending on your business entity.

3. Can I avoid the penalty for late filing with ACRA?

It’s best to file on time to avoid penalties. However, ACRA may waive the penalty under exceptional circumstances. You can submit a request for waiver through BizFile+ or the VCC portal, explaining the reason for the late filing.

4. Where can I find more information about ACRA’s late filing penalties?

You can find the latest information on ACRA’s website, including detailed penalty structures and specific filing requirements: https://www.acra.gov.sg/announcements/revised-penalty-framework-for-annual-lodgments-to-take-effect-from-30-apr-2021

5. How can I ensure I file with ACRA on time?

Set calendar reminders for upcoming filing deadlines.
Consider using the BizFile+ or VCC portal’s auto-reminder features.
Seek professional help from an accountant or corporate secretary if managing filings is complex. DataTracks Singapore can ensure timely and accurate filings, saving you from penalties and ensuring compliance.