Singapore introduces new tax frameworks for companies to strengthen tax compliance

Singapore has rolled out two new tax frameworks to help companies strengthen their tax compliance, just announced the Inland Revenue Authority of Singapore (IRAS) on March 18^th.

These new frameworks complement the existing Goods and Services Tax Assisted Compliance Assurance Programme (GST ACAP) which already allows companies that adopt them to enjoy benefits including longer grace periods and waivers when they voluntarily disclose tax errors.

The first one, 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 two years for voluntary disclosure of corporate income taxes and/or withholding tax errors made within two years from the date IRAS awards the TGF status.

For GST-registered businesses, they are entitled to a one-time extended grace period of two or three years for voluntary disclosure of GST errors made within two 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.

Should you need to apply for TGF status or any other tax framework, please do not hesitate to contact our tax experts at contact@orbis-alliance.com.