IRAS’s Voluntary Compliance Programmes

by | Oct 10, 2024 | Accounting, Income Tax, Tech News

The Inland Revenue Authority of Singapore (IRAS) has significantly bolstered its suite of voluntary compliance programmes, introducing two key frameworks—the Tax Governance Framework (TGF) and the Corporate Income Tax Risk Management and Control Framework (CTRM)—to complement its long-standing GST-Assisted Compliance Assurance Programme (ACAP). These initiatives aim to embed proactive tax governance and risk mitigation within businesses, aligning with global trends where tax authorities prioritize cooperative compliance.

Core Programmes and Benefits

  1. Tax Governance Framework (TGF)
    • Purpose: Guides companies to institutionalize tax accountability at the board level through three pillars:
      (i) Commitment to tax law compliance,
      (ii) Formalized tax risk governance,
      (iii) Transparent engagement with tax authorities.
    • Benefits: Permanent TGF status (contingent on ongoing adherence) grants a one-time 2-year grace period for voluntary disclosure of CIT/withholding tax errors, and 2–3 years for GST errors.
    • Target: Firms with complex structures seeking stakeholder confidence via published tax governance policies.
  2. GST-Assisted Compliance Assurance Programme (ACAP)
    • Purpose: Holistic review of GST controls across entity, transaction, and reporting levels.
    • Benefits: “ACAP Premium” or “ACAP Merit” status enables penalty waivers for non-fraudulent disclosures, expedited refunds/rulings, and auto-renewal of GST schemes.
    • Target: Medium-to-large businesses with high transaction volumes.
  3. CTRM for Corporate Income Tax
    • Purpose: Mandates systematic controls across tax governance, entity-level oversight, and reporting accuracy. Companies must implement ≥60% of control features per key risk area.
    • Benefits: 3-year validity includes one-time waiver of penalties, for voluntary disclosure of prior years’ CIT errors and withholding tax errors and reduced audit scrutiny for low-risk areas.
    • Eligibility: Requires 3 years of clean tax/audit records and robust control implementation.

Strategic Impact

IRAS’s trifecta of programmes—TGF, CTRM, and ACAP—shifts compliance upstream, rewarding companies that formalize tax risk management. Benefits include:

  • Long-term cost reduction via streamlined audits and penalty protections.
  • Enhanced stakeholder trust through demonstrable governance.
  • Collaborative tax authority relationships, reducing disputes.

As tax transparency gains urgency worldwide, IRAS’s initiatives mirror OECD guidance on cooperative compliance. Companies leveraging TGF, CTRM, or ACAP position themselves for resilience amid evolving regulations.

Firms should assess readiness across CIT, GST, and governance maturity. IRAS confirms companies may adopt one or multiple programmes based on operational needs.

Sources: SCTP, 10 October 2025