Knowledge Highlights 30 April 2021
On 30 April 2021, the Accounting and Corporate Regulatory Authority (“ACRA”) announced that it would put on hold the implementation of the two-tier penalty framework (“Framework”) for filing of annual returns and annual declarations for Singapore-incorporated companies, variable capital companies (“VCCs”) and limited liability partnerships (“LLPs”) in order to give entities more time for the transition.
The Framework was first announced on 30 December 2020 and was originally scheduled to take effect on 30 April 2021. Under the Framework, Singapore-incorporated companies, VCCs and LLPs would incur a late lodgment penalty of S$300 if the annual return or annual declaration is filed within three months after the filing due date, or S$600 if the lodgment is filed more than three months after the filing due date.
All Singapore-incorporated companies and VCCs will continue to incur a flat penalty tier of S$300. Foreign companies and LLPs will continue to be levied with late lodgment penalties ranging from S$50 to S$350. The amount payable will be reflected and imposed at the point of lodgment via the BizFile+ portal.
ACRA urges all entities to comply with the statutory timelines and file the annual lodgment on time to avoid incurring late lodgment penalty.