Singapore Updates Regulations for Voluntary Disclosure of GST Errors
The Inland Revenue Authority of Singapore has released new information relating to the regulations for correcting errors made in submitted GST F5/ F7/ F8 forms.
With respect to GST F5 forms, taxpayers will be able to adjust for errors made if they meet both of criteria below:
- The Net GST amount in error (i.e. output tax error – input tax error) for all the affected prescribed accounting periods is not more than S$1,500.
- The total non-GST amounts in error for (each of) the affected accounting period(s) is not more than five percent of the total value of supplies declared in the submitted GST return. In the case where there was no supply made in the affected accounting period, the five percent rule applies to the total value of the taxable purchases.
A GST F7 form can be filed if a business wishes to claim a refund due to an over-accounted output tax or under-claimed input tax in its GST return. However, if the business is not sure of the correct GST treatment and needs to clarify the GST treatment before filing the GST F7 form, the following information must be provided to the IRAS:
- Description of the error or issue involved.
- Breakdown of the amount of GST to be refunded for all affected accounting periods.
It should be noted that a business can be penalized up to 200 percent of the tax undercharged for the submission of incorrect GST returns. In addition, the business may be liable to a fine and its employees subject to a term of imprisonment. Fraud cases are subject to even harsher treatment. However, the IRAS may reduce the penalties imposed if the business voluntarily discloses past errors and omissions. The qualifying conditions for such treatment can be found in the IRAS Voluntary Disclosure Programme.
In order to make a voluntary disclosure, a business must send an electronic request for a GST F7 form to the myTax Portal. The GST F7 form must be e-filed within 14 days from the date of the initial request. The IRAS also states that businesses should correct any errors in their past GST returns within five years from the end of the relevant accounting period.
The full GST error guide can be found here.
In addition, the IRAS has released an updated version of its e-Tax Guide on GST: and Assisted Self-Help Kit (ASK) Annual Review Guide. The new guide is intended to function as a self-assessment package that will facilitate the voluntary compliance of GST-registered businesses.
According the IRAS, the five percent late payment penalty will be waived if businesses voluntarily disclose their past errors within one year from the filing date of their last GST return (certain conditions may apply).
The Self-Help Kit can be found here.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email firstname.lastname@example.org or visit www.dezshira.com.
Stay up to date with the latest business and investment trends in Asia by subscribing to our complimentary update service featuring news, commentary and regulatory insight.
Tax, Accounting, and Audit in Vietnam 2014-2015
The first edition of Tax, Accounting, and Audit in Vietnam, published in 2014, offers a comprehensive overview of the major taxes foreign investors are likely to encounter when establishing or operating a business in Vietnam, as well as other tax-relevant obligations. This concise, detailed, yet pragmatic guide is ideal for CFOs, compliance officers and heads of accounting who need to be able to navigate the complex tax and accounting landscape in Vietnam in order to effectively manage and strategically plan their Vietnam operations.
An Introduction to Tax Treaties Throughout Asia
In this issue of Asia Briefing Magazine, we take a look at the various types of trade and tax treaties that exist between Asian nations. These include bilateral investment treaties, double tax treaties and free trade agreements – all of which directly affect businesses operating in Asia.
The 2015 Asia Tax Comparator
In this issue, we compare and contrast the most relevant tax laws applicable for businesses with a presence in Asia. We analyze the different tax rates of 13 jurisdictions in the region, including India, China, Hong Kong, and the 10 member states of ASEAN. We also take a look at some of the most important compliance issues that businesses should be aware of, and conclude by discussing some of the most important tax and finance concerns companies will face when entering Asia.