On 30 Dec 2020, ACRA announced plans for a 2-tier penalty framework for filing of annual returns and annual declarations by Singapore incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs), to take effect on 30 Apr 2021. Under the 2-tier penalty framework, Singapore-incorporated companies, VCCs and LLPs would incur a late lodgment penalty of $300 if the annual return or annual declaration is filed within 3 months after the filing due date, or $600 if the lodgment is filed more than 3 months after the filing due date.
To allow more time for transition, the implementation of the 2-tier penalty framework has been put on hold.
The current penalty framework will continue to apply for filing of annual lodgments:
|| Late lodgment penalty
| Local companies
|| Flat rate of $300
| Variable Capital Companies (VCCs)
| Foreign Companies
|| 8-tier penalties ranging from $50 to $350
| Limited Liability Partnerships (LLPs)
We urge all entities to comply with the statutory timelines and file the annual return or annual declaration on time, to avoid incurring late filing penalty.