ACRA IRAS Seamless Filing: How Businesses Can Get 80% PSG Funding For Accounting Software

ACRA IRAS Seamless Filing

When corporate tax season comes around, many small businesses and startups can spend up to about 9 hours manually preparing and filing their annual tax returns. While larger businesses may also spend equal or more hours on their tax returns, the main difference is that they usually have a separate finance department to do this. For smaller businesses, it can be the entrepreneur who does this.

This is why any solution that can shorten or improve the process will make sense for smaller businesses. Of course, such a solution has to be cost-effective as well. Otherwise, they could just hire a finance manager or outsource their work to an accounting firm.

Thankfully, under the ACRA IRAS Seamless Filing Initiative, the two government boards have partnered with accounting software providers to create a digital solution. According to them, this can cut the amount of time smaller businesses spend filing their annual and tax returns with ACRA and IRAS to about half an hour, freeing your company up for more productive work. Any errors in the annual return and tax filings would also be minimised as the filings are auto-generated and submitted directly to both agencies via linked APIs.

Read Also: Complete Guide To Singapore Corporate Taxes: Tax Rates, Tax Rebates And Tax Exemptions

Even better, companies can leverage on various government grants to reduce their costs to onboard these accounting software for their businesses.

Which Are the Accounting Software Providers Can You Use?

The following accounting software providers have successfully integrated with APIs, and are capable of submitting companies’ Form C-S seamlessly through their software:

#1 Autocount (S) Pte Ltd

Email: [email protected]

#2 Netiquette Software Pte Ltd

Email: [email protected]

#3 Realtimme IT Consultancy Pte Ltd

Email: [email protected]

#4 SMECEN Pte Ltd

Email: [email protected]

While there is a fifth provider, BGL Corporate Solutions Pte Ltd, it does not have the full filing features with ACRA and IRAS. The other four above are able to:

  • File annual returns with ACRA;
  • File financial data (in simplified XBRL format) with ACR; and
  • File tax returns (form C-S) with IRAS

Do note that IRAS themselves have a separate Accounting Software Register (ASR), that helps your business to meet your tax obligations. While these may also be supported by government funding, they may not have linked APIs to ACRA.

How Does the Seamless Integration Process Work?

Source: ACRA

The software is linked to ACRA and IRAS via Application Programming Interfaces (APIs), so you can file statutory filings without the need to log in to ACRA’s BizFile+ and IRAS’ myTax portal separately.

Read Also: Step-By-Step Guide On How To Change Your Registered Business Activity In BizFile

How Much Grants You Can Get?

The following are schemes which let you kick-start your adoption of accounting software, while at the same time fulfilling your statutory obligations seamlessly through the API solution:

NoGrantIncentive
1Productivity Solutions Grant (PSG) by Enterprise Singapore (ESG)Up to 80% funding will be made available on the purchase of pre-approved IT solutions. 

As announced in Budget 2021, the enhanced maximum support level of up to 80% will be extended from 30 Sep 2021 to 31 Mar 2022
2Start Digital Pack by Infocomm Media Development Authority (IMDA)A minimum of six-month free subscription with a minimum 18-month contract period

Source: Accounting and Corporate Regulatory Authority

The following are schemes which let you kick-start your adoption of accounting software, while at the same time fulfilling your statutory obligations seamlessly through the API solution:

Read Also: 5 Digital Solutions That Every Company Should Adopt Using The Productivity Solutions Grant (PSG)

Which Businesses Can Benefit From The ACRA IRAS Seamless Filing Initiative

This initiative is expect to benefit an estimated 200,000 SMEs. To be eligible for the ACRA IRAS Seamless filing initiative, your business has to first meet the requirements for IRAS and ACRA.

IRAS Form C-S Eligibility

Form C-S is a simplified income tax return to help you report your income to IRAS. For qualifying companies, you may report your income using Form C-S, instead of Form C which has twice as many fields. 

To be eligible to use Form C-S, your company:

ACRA Annual Return and Financial Statements Eligibility

You may file Annual Return and Financial Statements (in Simplified XBRL format) with ACRA if your company:

  • Has revenue of $500,0001 or less for the current financial year
  • Has total assets of $500,0001 or less as at the current financial year-end
  • Is not listed or is in the process of issuing its debt or equity instruments for trading on a securities exchange in Singapore
  • Is not listed on a securities exchange outside Singapore
  • Is not a financial institution

After understanding if you are eligible for the ACRA IRAS Seamless Filing Initiative, you can then determine if you will also be able to benefit from the government grants that provide up to 80% funding for onboarding these software.

Productivity Solutions Grant (PSG) Eligibility

To be eligible, your SME must meet the following criteria:

  • Registered and operating in Singapore
  • Purchase/lease/subscription of the IT solutions or equipment must be used in Singapore
  • Have a minimum of 30% local shareholding; with Company’s Group annual sales turnover less than S$100 million, OR less than 200 employees (for selected solutions only)

Start Digital Pack Eligibility

Owners of business entities, including sole proprietorships, are eligible if you:

  • Have at least 30% local shareholding
  • Have annual revenue of not more than $100 million or have fewer than 200 employees, at group level
  • Have not taken up solutions under Start Digital before

Interested SMEs can approach any of the Start Digital Partners directly for more details and to sign up. These Partners are Singtel, M1, DBS Bank, Maybank, United Overseas Bank and OCBC Bank.

Businesses could also tap on the Digital Resilience Bonus (DRB) if they had adopted the software by 30 June 2021.

Read Also: Guide To Understanding The Productivity Solutions Grant (PSG)

Remember To e-File By 30 Nov

Do take note, the deadline for filing your company’s YA 2021 Corporate Income Tax Return (Form C-S/ C) is 30 Nov 2021. This deadline of 30 Nov will similarly apply to subsequent YAs.

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