Singapore introduces 2 new tax frameworks for companies to strengthen tax compliance

SINGAPORE has rolled out 2 new tax frameworks to help companies strengthen their tax compliance, said the Inland Revenue Authority of Singapore (Iras) on Friday (Mar 18).

The new frameworks complement the existing Goods and Services Tax Assisted Compliance Assurance Programme (GST ACAP), Iras said, and companies that adopt them enjoy benefits including longer grace periods and waivers when they voluntarily disclose tax errors.

The Tax Governance Framework (TGF) focuses on strengthening the tax governance standards in a company and elevating them to the board level, and awards companies a longer grace period for voluntary disclosure of tax errors.

Companies are entitled to a one-time extended grace period of 2 years for voluntary disclosure of corporate income taxes and/or withholding tax errors made within 2 years from the date Iras awards the TGF status.

For GST-registered businesses, they are entitled to a one-time extended grace period of 2 or 3 years for voluntary disclosure of GST errors made within 2 years from the date of award of TGF status.

Meanwhile, the Tax Risk Management and Control Framework for Corporate Income Tax (CTRM) is targeted at large companies with complex structures and business models.

Eligible companies that attain the CTRM status are entitled to a one-time waiver of penalties for voluntary disclosure of prior years' corporate income taxes and/or withholding tax errors, as well as a step-down on corporate income tax compliance audit for 3 consecutive years of assessment from the date Iras awards the CTRM status.

Ng Wai Choong, Iras chief executive and commissioner of inland revenue, said: "While the TGF, CTRM and GST ACAP are voluntary compliance initiatives that operate independently, we strongly encourage companies to adopt all 3 frameworks to ensure proper internal controls and systems are in place to manage their tax risks."

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