XBRL Filing Exemptions in Singapore 2024

One significant step toward automating and simplifying financial reporting in Singapore is the submission of XBRLs. This helps to make Singapore’s financial market more effective and transparent. Here, through this blog, we set out to explore the intricacies of XBRL filing exemptions. We’ll dispel myths, examine the real-world effects of exemptions, and provide you with the information you need to submit your application easily. 

Understanding XBRL Filing and its Significance

eXtensible Business Reporting Language is known as XBRL. This is a common format for electronically labelling financial data items in business reporting. XBRL marks every data point with a unique tag that describes its significance and relationship to other data points instead of just displaying financial information in text or tables. It significantly reduces filing time and errors and streamlines regulatory compliance.This streamlined approach to handling financial data underscores the advantages of XBRL in modern financial practices.

Singapore’s Requirements for XBRL Files

Implementing and upholding Singapore’s ACRA XBRL reporting requirements is mostly the responsibility of the Corporate Regulatory Authority (ACRA). No matter how many shares a company has, it must comply with the country’s financial report filing standards. 

Who is Not Required or Exempted to File in XBRL?

Exemptions from XBRL filing are intended to lessen the burden for specific business categories, such as defunct corporations and bankrupt Exempt Private corporations (EPCs). A company must meet the requirements outlined in Section 201A of the Companies Act to be eligible for the exemption. The company must be dormant, meaning it is not actively trading or generating income.

Note that not every business is eligible for these exemptions. To avoid any fines or penalties for failing to comply with the XBRL format, directors should verify that their organization satisfies the exemption requirements.

Dormant Companies: 

A firm that is “not active, not liable for corporation tax, or not within the charge to corporation tax” is called a dormant corporation. For instances:

• An emerging business that hasn’t started trading yet.
• A corporation that is “off-the-shelf” and kept by a company formation agent in preparation for sale.
• An established business that was formerly a trader but is not currently doing so.
• A business that was established only to hold assets, such as real estate, and will never trade.

Learn: what is a Dormant Company in Singapore?

Exempt Private corporations (EPC) in Singapore 

A private corporation limited by shares subject to particular rules about its shareholders and exemptions is known as an Exempt Private Corporation (EPC) in Singapore. EPCs may have no more than twenty individual shareholders, and no company may directly or indirectly hold shares on behalf of an EPC.

The following categories of entities are also not required to file XBRLs:

• The Monetary Authority of Singapore (MAS)-regulated finance businesses
• Licensed insurers, merchants and commercial banks
• Solvent-exempt private enterprises (solvent EPCs)
• Businesses that report using accounting standards other than IFRS, SFRS, and Singapore Financial Reporting Standards (SFRS for Small Entities)

The companies listed above can submit their financial accounts in PDF format. Additionally, those required to report Financial Statements Highlights (FSH) in XBRL format are banks, financial businesses, and insurers.

Applying for Exemptions from XBRL Filing Requirements 

Exemption requests are assessed individually, and there are no costs associated with this service. 

• Fill out the exemption request form (DOCX, 26KB) and email it to ACRA_XBRL_Application@acra.gov.sg to apply for exemptions. 
• The company’s signed AGM financial statements and XBRL file must be included when applying for the exemption.

Please be aware that depending on each case’s complexity, processing may take three to seven working days.

How Can DataTracks Help?

XBRL’s increased accessibility, accuracy, and cross-national comparability of financial data benefits investors, firms, regulators, and the larger financial ecosystem. 

DataTracks, so far, has assisted in preparing over 348,000 reports. It has served over 23,400 clients and offers software for preparing compliance reports in 26 countries. The company offers support services that convert client-provided traditional format inputs into XBRL formats. To learn more about our services, contact a DataTracks expert at +65-31-582-850 or email us at enquiry@datatracks.com.sg.  

Frequently Asked Questions:

What is meant by Exempt Private Company in Singapore?

An Exempt Private Company (EPC) is a private company with fewer than 20 shareholders, and no corporation holds any shares. Additionally, a private company wholly owned by the Government is also classified as an EPC, requiring notification in the Gazette by the Minister.

Do Dormant company is exempted from ACRA XBRL filing in Singapore?

The term used for a company that is not subject to corporation tax is ‘Dormant Company.’ This can be attributed to several reasons, such as not having commenced trading, being in the closing stage, or solely holding assets with no intention of trading. These dormant companies are not required to submit their Annual Financial Statements (AFS) in XBRL format to ACRA.