• Who are the Approved Auditors?
• Audit Exemption Criteria
• Singapore Standards on Auditing

Who are the Approved Auditors?

The accounting firms or public accountants must be registered and approved by the Accounting and Corporate Regulatory Authority (ACRA) before they can be appointed to audit the company’s financial statements. The auditors are responsible to conduct the audit in accordance with the Singapore Standards on Auditing (SSA) and other regulations to provide an audit opinion on the financial statements.

The shareholders of the company shall review, approve the auditors’ report and decide if they would like to re-appoint the auditors during the Annual General Meeting (AGM).

Audit Exemption Criteria

From July 1st 2015, a Singapore company can be exempted from having its accounts being audited if it qualifies as a small company.

A company is considered small if it fulfills the following conditions:

• It is a private company all through the financial year (i.e., a limited liability company in which the shares are held by less than 50 persons and are not available to the general public)

• It meets at least two of three following criteria for immediate past two consecutive financial years:

1. Total annual revenue of not more than SGD 10 million
2. Total assets of not more than SGD 10 million
3. Number of employees of not more than 50

Additionally, if a small company is part of a group, then all its entities (including foreign ones) must fulfill the above thresholds on a consolidated basis in order to benefit from the exemption.

Please note that if a company is not private anymore, then it cannot be exempted from audit for the current financial year.

Singapore Standards on Auditing

The Singapore Standards on Auditing (SSAs) are crucial guidelines established by the Accounting Standards Council (ASC) and the Institute of Singapore Chartered Accountants (ISCA). These standards provide auditors with a comprehensive framework for conducting audits of high quality, ensuring consistency, reliability, and transparency throughout the auditing process.

Covering various aspects such as risk assessment, audit planning, evidence gathering, materiality, and reporting requirements, the SSAs closely align with international auditing standards. This alignment reinforces Singapore’s standing as a dependable financial hub and facilitates seamless cross-border investments.

Adherence to the SSAs is enforced through routine quality control reviews and inspections, promoting ongoing enhancement and preserving the integrity of financial reporting.

The SSAs serve as a cornerstone for the auditing profession, offering clear guidance and best practices for conducting thorough and effective audits.

By adhering to these standards, auditors play a pivotal role in maintaining a robust auditing environment that safeguards stakeholders’ interests and instills confidence in Singapore’s business community. The SSAs underscore Singapore’s dedication to maintaining high auditing standards and provide auditors with a solid framework for conducting audits with professional diligence, ensuring the trustworthiness and credibility of financial statements.

The post What are audit obligations for companies in Singapore? appeared first on MyBusiness in Asia.

It is worth noting that 2020 was considered an exceptional year, with a range of extensions offered or allowances made for late filings by many authorities in both the company secretarial and taxation space. However, as we settle in to 2021 we cannot assume that any automatic extensions will be granted going forward. As such, all companies should work toward the official deadlines. If you feel that you will be unable to meet filing deadlines, highlight this to your service provider as soon as possible.

In this article, we will cover:

• Filing obligations in Singapore
• Filing obligations in Hong Kong
• Summary

Filing obligations in Singapore

Annual accounts

Annual accounts should be completed each year. The accounts should be audited unless the company qualifies for an audit exemption (for example, as a small company).

The timeline to complete the accounts is partly driven by the deadlines for annual return filings, as detailed below. You should provide all accounting documents to your accounting service provider within one month of the year-end date (two months for those who hold an audit exemption) in order to allow sufficient time for accounting and audit, if applicable.

Annual Return Filing

All Singapore incorporated companies (except those which are exempt) are required to file financial statements with ACRA annually. The timeline for preparing financial statements (audited or unaudited as applicable), holding an annual general meeting and filing the annual return depends on your year-end date and whether the company is listed or not. We summarize the timeline below:

Tax Filing

For Singapore companies, two annual tax filings are required.

The first is the filing of your Estimated Chargeable Income, or ECI. ECI is an estimate of the taxable income, after deducting allowable expenses. This filing is due three months after your year-end date. The filing of ECI is required for all companies except those who have annual revenue below $5m AND nil ECI for the relevant year or assessment.

The main tax filing of the year is due on 30 November 2021. Please note that this year all companies are required to file electronic tax returns, and as such there is no extended deadline of 15 December as in previous years.

Filing obligations in Hong Kong

Annual audited accounts

All Hong Kong companies must complete annual audited accounts unless they are registered as dormant. There is no small company exemption. A copy should be kept by your registered company secretary. The audited accounts are required to be submitted to the Inland Revenue together with your Profits Tax Return when this is due.

The timeline for completing your audited accounts will be driven by your year-end date and Profits Tax Return due date. You should aim to provide all accounting documents to your accounting service provider within two months of the year end date in order to allow sufficient time for accounting and audit.

Annual Return and Business Registration

Annual Returns must be filed within 42 days of the business incorporation anniversary and Business Registration Certificates must be renewed when the demand note is issued. Your corporate secretarial service provider should notify you in advance of the relevant deadlines.

Profits Tax Return

In Hong Kong, Profits Tax Returns are generally issued to companies annually on the first working day of April each year. The Profits Tax Return and any required supplementary forms (including audited accounts) should be filed within one month of the issue date. You should inform your accounting service provider and corporate secretarial service provider immediately when you receive a Profits Tax Return.

All Profits Tax Returns are technically due by the end of April. However, depending on your year-end date, extensions are available. The due date can normally be extended as follows:

Do note that extensions are only available for a 31 December and 31 March year end. If your year-end date is a different date (for example, 30 June or 30 September) no extension is available and you must file your Profits Tax Return and annual accounts within one month of the issue of the Return.

To allow for sufficient time to process and submit your Profits Tax Return, you should have the audited accounts completed and signed one month before the extended due date. For 2021 filings, this means the timeline should be as below:

Summary

In Singapore, it is the filing of the annual return that drives the timeline for completing annual accounts. In Hong Kong, it is the filing of the Profits Tax Return. For both locations, it is important to complete the accounting as soon as possible after year-end to allow sufficient time for review and audit (if required).

Our key advice is to be proactive, aim to be well ahead of the deadlines, and flag any delays early. If you need assistance or advice on any of these matters, please reach out to us and we will be pleased to help.

The post Filing obligations for Hong-Kong and Singapore appeared first on MyBusiness in Asia.