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Tax Clearance – Strike Off and Cease Registration for Singapore Companies

Business Outsourcing Specialists in Singapore

Singapore company must fulfil all tax obligations and pay outstanding taxes once it decides to de-registering or strike off their company.

Striking off A Company

ACRA will process the striking off application and remove the companies from the Companies Register.

Pay outstanding taxes to IRAS

To complete the striking off process with the ACRA, the relevant company must pay all tax liabilities due to the IRAS. IRAS and ACRA may decline the application if the company does not settle its tax liabilities with IRAS.

The Singapore company must ensure that:

1. They complete all relevant income tax returns (Form C-S or Form C) and filed them with the IRAS. For companies completing Form C, they must file the tax computation and financial statements with IRAS.

2. They prepare the tax computations and financial statements up to the date the company ceases to exist (i.e. this relates to the most recent year of assessment in the year of strike off.)

3. They must settle all outstanding tax matters with the IRAS, such as pay all tax due and responding to all IRAS questions.

4. They must cancel their GST registration and there are no outstanding issues.

Close all the company’s bank accounts

The company’s bank accounts should remain open and active until the company resolve all outstanding tax issues. In the event of closing the bank account and a tax credit is due, the IRAS is not able to make the relevant payment to a shareholder, director or a third party.

When the company is no longer in existence, IRAS passes any payable tax credits to the Insolvency and Public Trustee’s Office (IPTO).

A person acting on behalf of the defunct company, such as a shareholder can approach IPTO with the intention of having the tax credit paid. This process is subject to a charge by the IPTO.

An officer (any executive, secretary, director, etc.) who held a position immediately before the company was dissolved, must keep the company’s accounting records and paperwork for five years.

Filing final tax returns with IRAS

A company must finalise its tax obligations by filing its tax computations, final management accounts and relevant income tax returns, before the company makes an official strike off application with ACRA.

For the complex tax affairs, the timeframe to review the assessments can stretch up to six months. IRAS do not issue a tax clearance letter for companies intending to strike off.

Singapore Branches Strike Off

Foreign companies with Singapore branches (registered with ACRA) must put in writing to the IRAS if they wish to stop business or cancel its registration in Singapore.

They must submit tax computations and financial statements up to the last day of business, and settle all tax liabilities. Afterwhich, the foreign companies with Singapore branches can proceed with application for strike off to ACRA.

Should you need assistance or would like to find out more about Tax Services in Singapore, please send an email to Contact@AccountingSolutionsSingapore.com, and our Tax advisor will contact you.

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