As mentioned in an article of A Singapore company – Annual fillings, all Singapore companies must comply with the Singapore Commercial Law of annual filling requirements. Apart from Singapore companies, a branch office in Singapore is also required to fill some certain reports to both IRAS and ACRA annual even if it is a business form which is depended on the parent companies outside Singapore.
Here’s an overview of the annual statutory compliance requirements that may apply to a branch office in Singapore.
Preparing and filling financial accounts
For financial accounts, the branch office must prepare and file financial accounts on an annual basis with the Accounting and Corporate Regulatory Authority (ACRA). The parent company is in charge with preparing these accounts and filing them together with the branch office’s own accounts.
All financial accounts filed by a Singapore branch office must be audited.
A Singapore branch office must also draft the profit and loss account which will also be audited and file them with ACRA together with the other financial records.
These documents must be filed within 6 months from the end of the financial year of the parent company, however ACRA offers an additional two months for the Singapore branch to submit them.
The branch is required to file the following with the Registrar:
- A copy of the financial accounts of the parent company for the financial year concerned
- Documents accompanying the financial accounts filed overseas in the parent company’s jurisdiction
- A copy of the audited financial accounts of the Singapore branch office
If the parent company is not required by the law of the place of its incorporation or origin to hold an AGM and prepare financial accounts, it must still prepare and file audited financial accounts within 5 months (if listed) or 7 months (if not listed) from its last financial year end (FYE).
Filing Estimated Chargeable Income (ECI)
As a company, a branch office is required to declare the revenue amount and estimated chargeable income by filing ECI form with IRAS within 3 months of the end of financial year for the branch.
The revenue to be declared in the ECI form refers to a branch’s main source of income, and excludes items like capital gains on disposal of fixed assets. Although the branch estimates its chargeable income as zero, it still has to file a “NIL” ECI.
Income Tax Return Filing
Likes Singapore companies, the branch also file its annual tax return with IRAS with the deadlines either 30 November for paper filling or 15 December for e-filling.
Singapore adopts the preceding year basis for taxation. The profits for the financial year ending in the preceding year will form the basis for filing the tax return in the current year.
The branch office agent is responsible and accountable for complying with the annual filing requirements. Failure to comply with the statutory compliance requirements is an offence and may result in fines or prosecution.
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