Singapore has gained a reputation as a premier destination for business due to its strong economy and generous tax incentives. For this reason, it is often referred to as a haven for business owners and investors.
Hence, it comes as no surprise that more and more people are considering starting a physical or online business in Singapore. If you are one of them, you should know by now that there are two primary government agencies you will be closely working with: the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). To learn more about these institutions, here are the functions of ACRA and IRAS and how they differ from each other.
ACRA is the regulatory body for public accountants and companies in Singapore. Locals sometimes refer to it as the Registrar of Companies since its principal purpose is to oversee a business’ lifecycle. This means that ACRA is responsible for the registration of new businesses and the monitoring of ongoing ones. It is also ACRA’s responsibility to ensure that there is a proper closing down of businesses when they cease to exist.
On the financial side, ACRA has been established to oversee financial reporting and the facilitation of enterprises. When companies neglect their obligations with ACRA, the agency has the power to impose penalties and issue court summons to them. Particularly, these powers will be used if a company fails to comply with its compliance requirements under the Companies Act.
BizFile+ is the online filing portal of ACRA through which companies can make their applications and submissions. It was formerly known as BizFile, which was introduced in 2004 for companies to utilise in uploading, retrieving, and storing business data in Singapore. Today, more than 300 services are available to the public online via BizFile+.
Having so many of these services online and accessible makes transacting business in Singapore much easier. Companies can utilise the BizFile+ system to submit documents to ACRA and obtain information about other businesses. Here are the other services you can also access through BizFile+:
IRAS is the government agency in Singapore that is responsible for the regulation of enterprise disbursement schemes and the administration of taxes. Its principal role is to collect tax revenue through an extensive set of varying taxes. Aside from this, the institution also assists the Singapore government in matters related to tax legislation, tax treaties, and economic research with respect to the impact of new and existing taxes on the economy of the country.
Among the primary functions of IRAS is to perform audits and other procedures that are designed to ensure the accuracy of all the tax returns filed by taxpayers (both individuals and business organisations). It also oversees the management of different digital platforms intended to facilitate tax-related procedures in Singapore, including the myTax Portal. Like ACRA, IRAS has the power to impose penalties, specifically for non-payment or late payments of corporate income tax and errors in tax returns.
IRAS operates through a series of digital services platforms designed to make tax reporting easier for individuals and businesses. These platforms commonly integrate with other government databases, such as CorpPass or SingPass, to verify the user’s identity and maintain accurate and updated records.
The most significant digital platform handled by IRAS is the myTax Portal, which is a user-friendly and convenient e-platform through which individuals and organisations can make different kinds of transactions. Here are the most important transactions that can be completed through myTax Portal:
Although ACRA and IRAS may seem similar in that they both deal with businesses, there are significant differences in the functions and responsibilities of these two institutions. While ACRA mainly handles the registration and supervision of businesses in Singapore, IRAS focuses on ensuring that every business in the country pays its taxes properly. Ultimately, both of these government agencies are vital to ensuring Singapore’s continued economic success.
Should you require the assistance of accounting services for small businesses in Singapore to help ensure your business’s compliance with the requirements of ACRA and IRAS, Counto is here for you! We are a trusted corporate secretarial service provider that offers a wide range of premium corporate services, spanning from incorporation and secretarial services to accounting and corporate tax filing. With our services, we can help guarantee your business’ long-term financial success.
Feel free to contact us today to find out more about how our excellent services can help your business.
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