Dear Valued Clients,

Please note on the following update from ACRA for the penalty framework for Annual Lodgements.

Under the legislations administered by ACRA, all Singapore incorporated companies, Variable Capital Companies (VCCs) and Limited Liability Partnerships (LLPs) are required to file annual lodgement including annual returns and annual declarations with ACRA, within a prescribed timeline. A late lodgement 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 lodgements 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 lodgement penalty of $300 if the annual return or annual declaration is filed within 3 months after the filing due date, or $600 if the lodgement 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.