Singapore is well-known as a top business destination, thanks to its strong economy and attractive tax benefits. Because of this, many business owners and investors see it as a great place to set up a business. If you’re thinking about starting a physical or online business in Singapore, you’ll need to work closely with two main government agencies: the Accounting and Corporate Regulatory Authority (ACRA) and the Inland Revenue Authority of Singapore (IRAS). A detailed guide to learn more about the difference between ACRA and IRAS and why you need to work with these important things.
ACRA is the authority that regulates public accountants and businesses in Singapore. It is often called the Registrar of Companies because its main role is to manage the lifecycle of businesses. ACRA handles the registration of new companies, monitors existing ones, and ensures proper closure when a business shuts down.
ACRA also oversees financial reporting and supports business operations. If companies don't meet their legal obligations, ACRA can issue penalties or court summons, especially when a business fails to comply with the requirements under the Companies Act.
BizFile+ is ACRA's online filing portal that allows companies to submit applications and documents. Previously called BizFile, it was launched in 2004 to help businesses upload, access, and manage their data in Singapore. Today, BizFile+ offers over 300 services online.
Having these services readily available makes it much easier to do business in Singapore. Companies can use BizFile+ to send documents to ACRA and find information about other businesses. Here are some services you can 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 provides a range of digital services to simplify tax reporting for individuals and businesses. These platforms connect with other government databases like CorpPass or SingPass to verify user identities and keep records up to date.
The main digital platform is the myTax Portal, which is easy to use and allows individuals and organizations to complete various transactions. Here are some key functions available on myTax Portal:
Read more on the importance of IRAS to your company.
While ACRA and IRAS both work with businesses, they have different roles and responsibilities. ACRA mainly focuses on registering and overseeing businesses in Singapore, whereas IRAS ensures that all businesses pay their taxes correctly. Both agencies are essential for Singapore's economic success.
If you need help with accounting services for small businesses in Singapore to meet ACRA and IRAS requirements, Clooud Consulting is here to assist you! We are a trusted provider of corporate secretarial services, offering everything from business incorporation and secretarial support to accounting and corporate tax filing. Our services can help ensure your business's long-term financial success.
Contact us today to learn more about how Clooud can support your business!
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