25 Nov 2021
With effect from 14 Jan 2022, there will be higher penalties for late filing of the annual lodgments by Singapore-incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs).
Under the 2-tier penalty framework, first announced in Dec 2020, the penalty for late filing of the annual lodgments will be $300 within the first 3 months after the due date or $600 if the lodgment is filed more than 3 months after the filing due date. This applies to annual lodgments that are due on or after 14 Jan 2022. For annual lodgments due before 14 Jan 2022, the existing penalty framework continues to apply.
We encourage all entities to file their annual lodgments on time to avoid incurring the higher penalty.
Singapore-incorporated companies and VCCs are required to file Annual Returns (AR) within 5 or 7 months after financial year-end for listed and non-listed companies respectively. LLPs are required to file Annual Declarations (AD) within 15 months of registration and subsequently, once in every calendar year within 15 months of the last lodgment.
Please refer to the table below:
||Filing due on or after
14 Jan 2022
|Filing due before 14 Jan 2022
||(i) $300 within the first 3 months after filing due date;
or (ii) $600 after the 3 months.
|Flat rate of $300
|Variable Capital Companies (VCC)
||8-tier penalties ranging from $50 to $350
Penalty for late ad hoc filings
For all ad hoc filings for companies, LLPs and businesses such as change in entity information or personal particulars of the officers or business owners, the existing penalty framework will continue to apply for late filing of such lodgments.
For ad hoc filings by VCCs, the 2-tier penalty framework will apply for all late filings with effect from 14 Jan 2022.
Please refer to the table below:
||Filing due on or after 14 Jan 2022
||Filing due before 14 Jan 2022
Limited liability partnership
|8-tier penalties ranging from $50 to $350
|Businesses (Sole proprietorship and partnership)
||8-tier penalties ranging from $10 to $250
Any penalty payable will be reflected and imposed at the point of lodgment via BizFile+ and VCC portals.
Frequently Asked Questions
Q: Why is ACRA revising the penalty framework for annual lodgments?
A: As part of ACRA’s ongoing effort to encourage voluntary compliance, the penalty framework has been revised to simplify understanding and computation of penalties.
Q: When will the new 2-tier penalty framework take effect?
A: The new 2-tier penalty framework will take effect from 14 Jan 2022.
Q: What is considered an annual lodgment?
A: The following types of entities have annual statutory lodgment obligations:
- Annual Returns by local companies under s197 of the Companies Act
- Annual Filing of Financial statement by foreign companies under s373 of the Companies Act
- Annual Declaration by Limited Liability Partnerships (LLP) under s24 of the LLP Act
- Annual Returns by Variable Capital Companies (VCC) under s97 of the VCC Act.
Q: Does the revised penalty framework apply to other ad hoc filings?
A: With the exception of VCCs, the revised penalty framework is only applicable for late filing of annual lodgments. ACRA will continue to review and simplify the penalty framework for other ad hoc filings.
Q: With the 2-tier penalty framework, will companies/LLP/VCCs be offered a composition amount, in addition to the late lodgment penalty?
A: The 2-tier penalty framework is only applicable to entities that have filed late, and the amount of penalty payable will be reflected and imposed at the point of online lodgment. If the entities do not voluntarily comply with their lodgment obligation, ACRA may take enforcement actions including prosecuting the companies or LLPs in court or offering of a composition amount.
Q: What will be the late lodgment penalty fee for late filing of annual return after 14 Jan 2022?
A: If the due date for annual return filing is on or after 14 Jan 2022, the penalty will be:
- $300 within the first 3 months after the due date; or
- $600 after the 3 months.
Any amount payable will be reflected and imposed at the point of lodgment.