ACAP is a program introduced by IRAS to encourage voluntary GST compliance. ACAP approaches Singapore GST compliance from the angle of having an effective internal control system for GST. In other words, ACAP reduces the risk of GST non-compliance by having effective GST internal control procedures. ACAP program guides GST-registered businesses to analyze their business environment and procedures in a holistic way and ensure that necessary controls are put in place to manage the risk of GST errors and omission.
Why ACAP? What is the Benefit to Company for Performing ACAP
ACAP provides IRAS with reasonable assurance that a Company or business is managing the risk of GST non-compliance. When IRAS approves an ACAP application and eventually awards the ACAP status, IRAS will not select the Company or business for GST Audit unless IRAS detects fraud or significant anomalies in its GST returns. This means the Company or business would effectively avoid the unnecessary stress of IRAS GST audit or GST review in short notice once ACAP is carried out.
To encourage ACAP adoption and the culture of GST compliance via sound internal controls, IRAS co-funded 50% of the fees for ACAP Review incurred by the Company or business, cap at $50,000 per ACAP Applicant during the period from 5 Apr 2011 to 4 Apr 2016. In addition, IRAS also waive the penalties relating to past non-fraudulent GST errors disclosed voluntarily. The waiver is applicable to the first ACAP review conducted by the Company or business during the period from 5 Apr 2016 to 31 Mar 2019.
If IRAS has awarded your Company or business with the ACAP status, the following benefits shall apply for a period of 5 or 3 years depending on the type of status:
- Lower IRAS-GST compliance activities on your Company or business;
- Fast GST refunds;
- Fast GST Rulings by dedicated IRAS team; and
- Auto-renewal of the GST schemes (e.g. Major Exporter Scheme status), if applicable.
Conditions to Apply for ACAP Review
The following conditions must be met to appl for ACAP participation:
- A GST Control Framework encompassing preventive and detective GST controls at the Entity, Transaction and GST Reporting levels
- All key controls listed in the “Self-Review of GST Controls” for the three levels (i.e. Entity, Transaction and GST Reporting) have been established.
- An unqualified latest audited financial statements.
- The Company or business is registered for GST for at least 3 years.
- The Company or business is not currently under GST audit or investigation by IRAS.
- The Company’ or business’ compliance records for GST, Income Tax, Property Tax (including no tax outstanding with IRAS) and with the Singapore Customs.
- The Company or business would appoint a qualified ACAP Reviewer to conduct the ACAP Review.
The Company or business should engage a qualified ACAP Reviewer to review its GST Control Framework and how the whole GST operates within the organization. Under the review program, IRAS e-tax guide on “GST ACAP Review Guidance” methodology has to be followed closely. The report on ACAP review has to be submitted to IRAS within 15 months. Thereafter, IRAS will determine if the Company’s or business’ GST risk management controls and procedures are sufficient to be awarded the ACAP status. When IRAS awards the Company or business with the ACAP status, it indicates the level of effectiveness of the Company’s or business’ GST controls for GST compliance purposes.
At A Tax Advisor Pte Ltd, our staff and managers are qualified ACAP Reviewer who can help your Company or business with the ACAP application. Contact us now at to assist in your ACAP Review.
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