SINGAPORE – Over 4,700 companies were prosecuted in 2023 for failing to file their tax returns or doing so late, said the Inland Revenue Authority of Singapore (Iras) on Sept 26.
The total penalties for such actions exceeded $4.9 million, it added.
About one in 10 companies fail to comply with their corporate income tax filing obligations despite repeated reminders, said the authority. The Straits Times has contacted the authority for comparable data on total penalties and the number of companies that were prosecuted in 2022.
Some 262,000 companies are expected to file their corporate income tax returns in 2024.
Iras reminded all companies, including those with no business activities or those making a loss, and their directors to do so for the Year of Assessment 2024 – which covers income earned in the preceding financial year – by Nov 30.
Companies that adopt software with seamless filing capabilities will get an automatic extension of their corporate income tax filing due date to Dec 15, said Iras.
“To avoid any last-minute rush, companies are encouraged to prepare their financial statements, tax computations, and supporting documents well in advance,” said Iras.
“Preparing and filing tax returns ahead of the deadline not only help companies avoid unnecessary fines but also provide them with ample time to review the documents, reducing the likelihood of mistakes.”
Companies that do not file their corporate income tax returns by the due date can be fined up to $5,000.
Depending on factors such as the company’s past compliance records, Iras may compound the offence instead of taking prosecution actions.
A company that receives a letter of composition must pay the composition amount and file the overdue tax return, failing which it will be issued a notice to attend court, said
