Based on the financial activities of a company during the financial year, the yearly financial accounts have to be prepared in compliance with the Financial Reporting Standards of Singapore. In case the company has numerous accounting transactions monthly, it is recommended that monthly bookkeeping is performed in order to maintain the ledgers in order. If though, the financial transactions which are undertaken are fairly rare, the bookkeeping can be performed quarterly or yearly.
The reporting requirements for financial accounts in Singapore consist of:
• Statement of Comprehensive Income (for example, Profit and Loss Account);
• Statement of Financial Position (for example, Balance Sheet);
• Cash Flow Statement;
• Statement of Changes in Equity.
Submitting the Estimated Chargeable Income (ECI) in Singapore
The reporting requirements in Singapore state that businesses in the country have to declare the revenue amount and Estimated Chargeable Income (ECI) by submitting the ECI form with the Inland Revenue Authority of Singapore (IRAS) in maximum three months from the end of the fiscal year of the company. In case the business evaluates its chargeable income as zero, it still has to submit a “Nil” ECI. Our accountants in Singapore can give you more details on this matter.
Financial Account Audit in Singapore
After the financial accounts are prepared, according to the reporting requirements in Singapore, the company is obliged to have its accounts audited – if it falls under one of the following categories:
• The business is a Singapore company with corporate shareholding; or
• The business is a Singapore company with annual revenue surpassing SGD 5 million.
Companies registered for GST in Singapore are also required to file GST returns.
If you need support when computing the dividend tax in Singapore, you can rely on our accounting firm.
The Yearly General Meeting in Singapore
The reporting requirements in Singapore state that each company in Singapore has to organize a yearly General Meeting (GM) once every calendar year. Yearly GMs have to comply with the following rules:
• The first yearly GM has to be organized in maximum 18 months from the date of the company incorporation;
• No longer than another 15 months should elapse from the following yearly GM;
• The accounts discussed at the yearly GM should be made up to a date which does not exceed six months before the yearly GM;
• Private businesses can give up the yearly GMs if at a general meeting of the business a decision to that effect is taken by all members with voting rights.