The Inland Revenue Authority of Singapore (IRAS) has published comprehensive guidance clarifying the Goods and Services Tax (GST) obligations for companies entering liquidation, offering critical clarity for insolvency practitioners and creditors .
The guidance, released on 20 February 2026, establishes a clear demarcation of responsibilities between the company under liquidation and the appointed liquidator, addressing filing requirements, asset disposals, third-party recovery scenarios, and input tax claims on winding-down expenses .
Key Filing Obligations
GST return filing responsibilities are now explicitly split based on the liquidation date. Companies must file all outstanding returns for accounting periods ending the day before liquidation within one month of the liquidation date. Liquidators assume responsibility for all accounting periods commencing from the liquidation date, with returns due within one month after each period ends .
Third-Party Recovery Provisions
A significant clarification concerns asset disposals by third parties. Where mortgagees, financiers, or auctioneers sell or lease a liquidating company’s assets to recover debts, they must charge and account for GST directly to IRAS within 21 days of sale—regardless of whether the third party is itself GST-registered . The liquidator must not account for this GST in the company’s returns.
Third parties must submit statements via IRAS’s online form and remit payment to the Commissioner’s designated DBS account, referencing “Reg 58” .
Input Tax Claims on Winding-Down Expenses
Liquidators may claim full input tax on termination expenses—including legal fees, liquidation fees, office rental, and utilities—where directly attributable to taxable supplies. For expenses relating to both taxable and exempt supplies, apportionment based on the input tax recovery formula is required .
Expenses incurred after business cessation but relating to past taxable supplies remain claimable, provided they are directly attributable to those supplies .
Practical Implementation Issues
Liquidators face administrative prerequisites: they must secure Corppass access with “GST (Filing and Applications)” and “GST (Payment)” roles. Where companies have reached the maximum two Corppass Administrators, existing administrators must be terminated before new appointments .
Pre-liquidation GIRO arrangements require manual termination by the company; liquidators may apply for fresh GIRO facilities but must ensure pre-liquidation taxes are settled beforehand to avoid unintended deductions .
Post-Liquidation Compliance
Within 30 days of business cessation, liquidators must apply for GST registration cancellation. Upon approval, a final GST F8 return is required, with output tax payable on business assets exceeding $10,000 in open market value where input tax was previously claimed . All records must be retained for five years from dissolution .
The guidance provides much-needed certainty for insolvency practitioners navigating GST compliance during winding-up proceedings.
Source: IRAS website, 20 February 2026