With effect from 9 December 2024, ACRA will adopt the 2-tier penalty framework for ad hoc lodgements for all entity type, including Singapore-incorporated companies, Variable Capital Companies (VCCs)1, Limited Liability Partnerships (LLPs), Limited Partnerships, and businesses. 

Under the 2-tier penalty framework, the penalty for late filing will be $50 within the first 3 months after the due date, or $200 if the lodgement is filed more than 3 months after the filing due date. This applies to ad hoc lodgements that are due on or after 9 December 2024. The existing 8-tier penalty framework continues to apply for ad hoc lodgements due before 9 December 2024. The current 2-tier penalty framework for late annual lodgements remains unchanged.

With this adjustment, most companies, limited liability partnerships and limited partnerships will be subject to lower late lodgement penalties for ad hoc filings. 

For businesses such as partnerships and sole proprietorships, our data shows that most late lodgements relate to business renewal applications. ACRA takes a serious view of businesses operating even when their registrations have expired. It is important for businesses to renew their licences in a timely manner. Considering this, penalties for this sub-group will be adjusted upwards. 

Companies or businesses that are genuinely unable to afford the penalties may appeal to ACRA with supporting evidence. 

We encourage all entities to file their information on time to avoid incurring a higher penalty, or any other enforcement actions by ACRA.

Please refer to the table below: 

Late Lodgement Penalty for Ad hoc Filings
Entity TypeFiling date due on or after 9 Dec 2024Filing date due before 9 Dec 2024
  • Local Companies
  • Foreign Companies
  • Limited Liability Partnership
  • Limited Partnership

(i) $50 within the first 3 months after filing due date; or

(ii) $200 after the 3 months

8-tier penalties ranging from $50 to $350

  • Businesses (Sole Proprietorship and Partnership)

8-tier penalties ranging from $10 to $250


1 The framework was previously only implemented for Variable Capital Companies (VCCs) on 14 January 2022, and was first announced in 2021.

 

Frequently Asked Questions

Q: Why is ACRA revising the penalty framework for ad hoc lodgements?

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 2-tier penalty framework for ad hoc lodgements take effect?

A: The 2-tier penalty framework will take effect from 9 December 2024.

Q: What is considered an ad hoc lodgement?

A: All other lodgements apart from the following are considered ad hoc lodgements:

  • 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 s30 of the LLP Act
  • Annual Returns by Variable Capital Companies (VCC) under s97 of the VCC Act

Q: With the 2-tier penalty framework, will entities be offered a composition amount, in addition to the late lodgement penalty?

A: The 2-tier penalty framework is applicable only to entities that have filed late, and the amount of penalty payable will be reflected and imposed at the point of online lodgement. If the entities do not voluntarily comply with their lodgement obligation, ACRA may take enforcement actions including prosecuting the entities in court or offering of a composition amount.

Q: What will be the late lodgement penalty for ad hoc filings after 9 December 2024?

A: If the due date for the filing is on or after 9 December 2024, the penalty will be:

  • $50 within the first 3 months after the filing due date; or
  • $200 after the 3 months.

Any amount payable will be reflected and imposed at the point of lodgement.

 

 
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