ACRA » 2-Tier Penalty Framework for Annual Lodgments takes effect from 14 Jan 2022

2-Tier Penalty Framework for Annual Lodgments takes effect from 14 Jan 2022

Under the legislations administered by ACRA, all Singapore incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs) are required to file annual lodgment including annual returns and annual declarations with ACRA, within a prescribed timeline. A late lodgment penalty will be imposed against companies, VCCs and LLPs for the late filing of annual returns and annual declarations. 

ACRA has revised the penalty framework for late annual lodgments with a simplified 2-tier penalty, to take effect from 14 Jan 2022. This is part of ongoing efforts to make compliance simple and to encourage companies and LLPs to take their statutory obligations on annual reporting seriously.  There is no change to the current penalty framework for ad hoc filings.

Under the revised penalty framework, all Singapore-incorporated companies, VCCs and LLPs will be imposed with a late lodgment penalty of:

1. $300 if the annual return or annual declaration is filed within 3 months after the filing due date, or
2. $600 if the lodgment is filed more than 3 months after the filing due date.

Please refer to the revised penalty framework as set out in the table below.

The timely filing of annual lodgment is an important statutory requirement as this ensure timely public disclosure of key information such as the health and status of the entity. All companies and LLPs are advised to file annual lodgment on time to avoid incurring late lodgment penalty.

The following types of entities have annual statutory 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