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 30 Apr 2021. 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 $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. Please refer to the revised penalty framework as set out in the table below.
| Entity Type |
Late lodgement penalty (current) |
Late lodgement penalty
(from 30 Apr 2021) |
| Local companies |
Flat rate of $300 |
$300 for late lodgment filed within 3 months after filing due date; or
$600 for late lodgment filed more than 3 months after filing due date. |
| Variable Capital Companies (VCC) |
| Foreign Companies |
8-tier penalties ranging from $50 to $350 |
| Limited Liability Partnership (LLP) |
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.
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 so that it is simpler for 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 30 Apr 2021.
Q: What is considered an annual lodgment?
A: 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
Q: Does the revised penalty framework apply to other ad hoc filings?
A: The revised penalty framework is only applicable for late filing of annual lodgments. However, we will continue to review and simplify the penalty framework for other ad hoc filings in the future.
Q: With the revised penalty framework, will companies/LLP/VCCs be imposed with a composition fine, in addition to the late lodgment penalty?
A: The new 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, ACRA may take enforcement actions including offering of a composition sum or prosecuting the companies or LLPs in court. For more details, please click here.