By law, every company in Singapore is required to file an annual tax return with Inland Revenue Authority of Singapore (IRAS) on or before November 30. The basis for taxation is the preceding financial year. In a sense, the profits earned within th e financial year towards the end of the preceding year are the foundation of filing the tax return for the current year.

What Happens if You Failed to File Your Tax Return

In Singapore, most taxpayers individuals and companies comply with the annual requirement of filing their taxes. However, there are still a few who failed to comply. In order to be impartial to those who have filed their taxes, IRAS penalize taxpayers who failed to comply with such requirement. Beginning 1st of January 2003, Singapore embraced the single-tier taxation system, which saves companies from being taxed doubly. The chargeable income of a company is its final tax. IRAS does not levy taxes on the dividends paid to the shareholders by their company.

November 30 is the deadline for filing the corporate tax in Singapore. Every company must file its Form C, and audited/non-audited accounts including the tax computation with IRAS, otherwise, the authorized officers of IRAS shall do the following sanctions for non-compliance:

Issue an estimated Notice of Assessment

Once you received the Notice of Assessment along with a demand letter, your company has 30 days to pay the estimated tax even if the amount is not accurate compared with what your auditing firms have calculated, and even if you have the intention of objecting. Otherwise, your company’s payment is deemed late and you shall pay for late-payment penalties.

Now, if you do not agree with the estimated tax indicated on the Notice of Assessment, you can file your objection with IRAS through its tax portal. You can also write to its corporate tax department. Any of these must be executed within 30 days so any revision on the tax due is possible.

Issue a Notice Pursuant to Section 65B (3) of the Income Tax Act

If your company receives a Notice Pursuant to Section 65B (3) of the Income Tax Act, you must immediately file the documents indicated on the notice to prevent the notice of summon issued by the court.

Then you should also file the composition fee on the date specified on the notice.

Summon you and other responsible persons to the court.

If after the days elapsed and your company has not filed the documents and paid the estimated tax, IRAS shall exercise its power so that a summon letter will be issued by the court to direct the company director to physical presence before the said court on a date specified on the summon letter. During the court hearing, the director or any of the company’s representative will give a plea following the charges. If there will be a conviction, the director will have to pay a fine up to S$1,000, plus the estimated tax. The documents required must also be furnished. Failure to do so would compel IRAS to make further legal actions.

To avoid being summoned, the company must file the documents required and pay the summon’s fee at least a week before the date of summon.

Legal Actions

If in the absence of any valid reasons, the company fails to file its tax return within the Year of Assessment for two years or more, and if upon hearing the company director is convicted, the court shall order the following:

  • Issue a penalty double the amount of the company’s tax as assessed by IRAS
  • Issue a fine penalty amounting to S$1,000

By law, every company in Singapore is required to file an annual tax return with Inland Revenue Authority of Singapore (IRAS) on or before November 30. The basis for taxation is the preceding financial year. In a sense, the profits earned within the financial year towards the end of the preceding year are the foundation of filing the tax return for the current year.

What Happens if You Failed to File Your Tax Return

In Singapore, most taxpayers individuals and companies comply with the annual requirement of filing their taxes. However, there are still a few who failed to comply. In order to be impartial to those who have filed their taxes, IRAS penalize taxpayers who failed to comply with such requirement. Beginning 1st of January 2003, Singapore embraced the single-tier taxation system, which saves companies from being taxed doubly. The chargeable income of a company is its final tax. IRAS does not levy taxes on the dividends paid to the shareholders by their company.

November 30 is the deadline for filing the corporate tax in Singapore. Every company must file its Form C, and audited/non-audited accounts including the tax computation with IRAS, otherwise, the authorized officers of IRAS shall do the following sanctions for non-compliance:

Issue an estimated Notice of Assessment

Once you received the Notice of Assessment along with a demand letter, your company has 30 days to pay the estimated tax even if the amount is not accurate compared with what your auditing firms have calculated, and even if you have the intention of objecting. Otherwise, your company’s payment is deemed late and you shall pay for late-payment penalties.

Now, if you do not agree with the estimated tax indicated on the Notice of Assessment, you can file your objection with IRAS through its tax portal. You can also write to its corporate tax department. Any of these must be executed within 30 days so any revision on the tax due is possible.

Issue a Notice Pursuant to Section 65B (3) of the Income Tax Act.
If your company receives a Notice Pursuant to Section 65B (3) of the Income Tax Act, you must immediately file the documents indicated on the notice to prevent the notice of summon issued by the court. Then you should also file the composition fee on the date specified on the notice.

Summon you and other responsible persons to the court.

If after the days elapsed and your company has not filed the documents and paid the estimated tax, IRAS shall exercise its power so that a summon letter will be issued by the court to direct the company director to physical presence before the said court on a date specified on the summon letter. During the court hearing, the director or any of the company’s representative will give a plea following the charges. If there will be a conviction, the director will have to pay a fine up to S$1,000, plus the estimated tax. The documents required must also be furnished. Failure to do so would compel IRAS to make further legal actions.

To avoid being summoned, the company must file the documents required and pay the summon’s fee at least a week before the date of summon.

Legal Actions

If in the absence of any valid reasons, the company fails to file its tax return within the Year of Assessment for two years or more, and if upon hearing the company director is convicted, the court shall order the following:

  • Issue a penalty double the amount of the company’s tax as assessed by IRAS
  • Issue a fine penalty amounting to S$1,000

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