Business owners can avoid tax penalties in Singapore by observing the legal provisions of the Singapore Income Tax Act. The main requirements for filing and submitting tax returns are described in this document.
Tax penalties in Singapore can be avoided by observing the local rules, regulations and good practices but also with the help of an accounting firm in Singapore.
We invite you to watch the following video on how to avoid tax penalties in Singapore:
Late tax payment in Singapore
Whenever companies in Singapore fail to observe the due date for filing and submitting tax returns with the Inland Revenue Authority of Singapore, a late penalty fee applies.
Companies must submit their tax returns within three months from the end of the financial year. The tax year is, in most cases, the same as the calendar year. Paper-filing has a due date on November 30th and electronic filing has a due date on December 15th.
The 5% penalty is applied when the taxpayer does not observe the due date for withholding taxes. He is notified via a Demand Note. An additional 1% penalty applies if the taxpayer does not observe his obligations within 30 days of the due date for the payment of the withholding tax.
Our agents are ready to assist you with proper accounting services in Singapore so that you can avoid the unpleasantries of late or incorrect tax filing.
Penalties for tax evasion in Singapore
Tax evasion is the illegal non-payment of taxes in Singapore, most commonly related to the corporate income tax but also possible in the case of the goods and services tax. Also included in this category is the illegal underpayment methods used by companies in Singapore and/or trusts. The penalties for intentionally filing incomplete or incorrect tax returns include a fine (of approximately 10,000 $) and/or imprisonment (three years).
Our team of accountants in Singapore can offer you detailed information on the applicable penalties for tax evasion. Moreover, our agents can give you qualified tax advice to implement effective and lawful tax minimization strategies for your company.
Contact us for more information on accounting in Singapore and personalized services for your business.