In Singapore, businesses must adhere to the regulations of ACRA (Accounting and Corporate Regulatory Authority) and IRAS (Inland Revenue Authority of Singapore). ACRA governs corporate filings and governance, while IRAS oversees tax obligations. Though distinct, their systems are interconnected — your ACRA filings directly influence your IRAS submissions.

Mastering this alignment is key to avoiding penalties and ensuring smooth compliance.

Roles of ACRA and IRAS

Here’s a breakdown of their responsibilities:

ACRA manages:

• Annual Returns
• Updates to company structure (directors, shareholders, share capital)
• Financial statements, often in XBRL format

IRAS handles:

• Corporate income tax filings (Form C or C-S)
• Estimated Chargeable Income (ECI)
• Goods and Services Tax (GST), if applicable

While these tasks seem separate, IRAS uses ACRA data to verify tax filings. Inconsistencies, like mismatched financials, can lead to audits, fines, or delays. Consistency across both is essential.

The Compliance Process

After your financial year ends, here’s the workflow:

1. Prepare financial statements: These form the basis for both ACRA and IRAS filings.
2. File ECI with IRAS: Due within three months of your financial year-end.
3. Submit Annual Return to ACRA: Due within seven months of your financial year-end.
4. File Form C or C-S with IRAS: Due by 30 November for a financial year ending 31 December.

Your financial data — revenue, expenses, profits — must be consistent across all submissions. Errors or delays in ACRA filings can disrupt IRAS processing, creating compliance challenges.

Common Compliance Mistakes

Many businesses face issues due to the complexity of compliance. Frequent errors include:

• Missing ECI deadlines: Failing to file within three months can result in fines or lost tax instalment options.
• Late or incorrect ACRA filings: Inaccurate Annual Returns can trigger penalties and affect IRAS assessments.
• Inconsistent financials: Mismatched figures between ACRA and IRAS can prompt audits.
• Misunderstanding exemptions: Exempt or dormant companies still have filing obligations, even without audits.

Proactive planning prevents these pitfalls.

How Company Secretarial Services Help

This is where company secretarial services make a difference. A corporate secretary ensures your ACRA filings are accurate, timely, and aligned with IRAS requirements. Their tasks include:

• Preparing consistent financial statements
• Tracking critical filing deadlines
• Maintaining statutory records and resolutions
• Coordinating with accountants or tax agents

With corporate secretarial services, compliance becomes efficient and stress-free.

Sample Compliance Timeline (FY Ending 31 Dec)

Here’s a practical schedule:

• Jan–Mar: Finalize financials and file ECI by 31 March.
• Apr–Jun: Prepare audited or unaudited financial statements.
• Jul: Submit Annual Return to ACRA by 31 July.
• Aug–Nov: File Form C or C-S with IRAS by 30 November.

Each step is interconnected, making timely action crucial.

Final Thoughts

Singapore’s compliance requirements are stringent but manageable with a strategic approach. By treating ACRA and IRAS obligations as a unified process, you can minimize risks and streamline filings. Corporate secretarial services like those from Entrust ensure accuracy and consistency, allowing you to focus on your business.

Let the experts handle the compliance details.