If your company in Singapore is opting for voluntary or compulsory liquidation, then you need to fulfil the tax requirement as stated by the Inland Revenue Authority of Singapore or IRAS. For the company liquidation Singapore, kindly be updated with the latest rules as stated by IRAS.
What is the process of company liquidation Singapore?
1. The wind up company Singapore whether it is voluntary or compulsory, need to appoint a liquidator or else will be appointed by the court to fulfil certain duties as prescribed by Income Tax Act.
2. A company in liquidation with receipts needs to file its declaration of receipts and payments with IRAS annually.
3. A company in liquidation with no receipts needs to file its declaration in every four years with IRAS.
4. With effect from May 1, 2021, while filing the declaration with IRAS, a company in liquidation is no longer required to split the receipts and payments based on calendar year.
5. It is the duty of the liquidator to prepare the accounts as per the guidelines given by the IRAS.
Duties of the Liquidator:
1. Submit the notice of appointment of the Liquidator to IRAS.
2. All the outstanding Corporate Income Tax Returns (Form C-S / Form C-S Lite / Form C) needs to be filed for the company under liquidation.
3. All outstanding tax matters needs to be settled before the completion of the process of liquidation.
4. There should not be any outstanding GST matters and the GST registration should be cancelled.
Company’s Bank Account Closure:
If you are going through company liquidation Singapore, please remember that you should not close the company’s bank account until all outstanding matters are settled. The reason is, after your company is dissolved, IRAS will not be able to pay the tax credit to a third party like a shareholder, director etc. through bank.
Filing the various requisite forms up to the date of Cessation of Business:
If you are in wind up company Singapore, then before cessation of your business, your company need to file Form C-S/Forms C-S (Lite)/Form C up to the date. It should be done before proceeding to strike off with ACRA.
If it is Form C, then all the financial statements and tax computations are to be filed along with it.
If it is Form C-S or Form C-S (Lite), then these documents are not needed to file but should be ready with you in case IRAS asks you to submit those later.
If your company is falling into category of dormant since the date of incorporation or since the last submission of Form C-S/Form C-S (Lite)/Form C, then check for any outstanding of the mentioned forms issued during the dormant period. If it is there, then you can apply for a waiver or else you need to file the requisite forms.
Checking of outstanding Tax Liabilities and GST issues:
Check the IRAS official website to know any outstanding Tax liabilities or GST issues your company might be having. There is also a 24 hour toll-free automated answering service to check the same.