The Inland Revenue Authority of Singapore (IRAS) has clarified where the Singapore branch of a foreign company ceases to have a place of business or to carry on business in Singapore, it must inform IRAS in writing.
Section 377(1) of the Singapore Companies Act requires the Singapore branch of a foreign company to lodge a notice with the Accounting and Corporate Reporting Authority (ACRA) within 7 days after it ceased to have a place of business or to carry on business in Singapore.
IRAS must be informed in writing at the same time that the Singapore branch informs ACRA so that the tax matters and tax liabilities of the Singapore branch could be settled.
IRAS has stipulate the written notification to IRAS must include:
- Subject heading “Cessation of Business in Singapore”;
- Date of cessation of business in Singapore;
- Name and contact details of a person whom IRAS can liaise with on tax matters; and
- All outstanding Income Tax Returns (Form C), financial statements and tax computations made up to the last day of business.
Our understanding that tax assessment by IRAS is estimated to be within one month upon receipt of the complete information, however, IRAS may require up to 6-months for branches with complex affairs or that have submitted incomplete information.
Source: IRAS, 11 October 2017