On this page:What is IRAS' funding for ACAP?
What if your ACAP application is received after the funding is fully taken up?
What are the costs qualifying for co-funding?How to apply for ACAP co-funding?How are funds allocated?How much is the co-funding amount?How to claim for ACAP co-funding?What is the mode of refund for ACAP co-funding?When do you need to repay the co-funded amount to IRAS?What is IRAS' funding for ACAP?
Tranche 1
IRAS had initially set aside a funding of $5 million for early participation of ACAP during the 5-year period from 5 Apr 2011 to 4 Apr 2016. This is to signal IRAS' commitment to partner businesses to enhance their tax risk management and strengthen their GST internal controls.
Due to strong response to ACAP, the fund has been fully taken up.
Tranche 2
To continue support to businesses intending to embark on ACAP, IRAS had set aside another $5 million from 1 Apr 2012. The additional funding will be allocated over the next four years as follows:
* Expected to fund about 20 ACAP applicants.
The funding allocated for each phase will be available for applications received during the respective periods (indicate in table above) until it has been fully taken up. Any balance not taken-up will be carried forward to the next phase.
An update will be given on this web page when the funding for each phase is fully taken up.
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What do you need to know when applying for co-funding under Phase 2?
Application for ACAP co-funding under Phase 2 will open on 1 Apr 2013.
The completed form GST F23 – Notification of Participation of GST Assisted Compliance Assurance Programme (ACAP) (313KB) is to be hand-delivered to the ACAP team at Revenue House, 21st storey between 8.30 am and 4.30 pm.
IRAS will consolidate all applications received between 1 Apr 2013 and 30 Apr 2013 (before 4.30 pm) to determine the allocation for funding.
If the total co-funding amount applied for during the month is within the available fund, all applications will be accepted, subject to the applicants meeting all eligibility conditions.
What if the co-funding amount applied for exceeds the funding allocated?
If the total co-funding amount applied for exceeds $1 million by 30 Apr 2013, IRAS will allocate the funding to the most suitable applicants based on size. Priority will be given to applicants^ who are:
(i) under GST group registration for at least 3 years; or
(ii) have annual supplies of more than $1 billion
^ For an applicant whose Reviewer has no prior ACAP-review experience, IRAS will evaluate the Reviewer’s capability to conduct the entire ACAP review based on its track record in auditing and reviewing internal controls of clients.
IRAS reserves the right to fine-tune the approach if the need arises.
What if the co-funding amount is not fully utilised?
Any balance not taken-up will be carried forward to the following month. IRAS will consolidate all applications received on a monthly basis to determine allocation for funding based on size of the applicants, until the funding is fully taken up.
When will you know the outcome of co-funding application?
IRAS will inform you of the outcome in the month following the receipt of the completed form GST F23.
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Back to TopWhat if your ACAP application is received after the funding is fully taken up?
You may choose to:
- Proceed with the ACAP application. You will still be able to enjoy full waiver of penalties for GST errors discovered from the conduct of ACAP and other benefits ; or
- Withdraw and re-submit your ACAP application in the next phase of co-funding; or
- Withdraw your ACAP application. If there are errors noted in the preliminary stage of ACAP preparation, you should inform IRAS so as to qualify for zero or lower penalties under IRAS Voluntary Disclosure Programme (VDP).
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What are the costs qualifying for co-funding?
IRAS will co-fund 50% of the qualifying costs (excluding GST amount), up to a maximum of $50,000 per ACAP Applicant, whichever is lower, subject to fund availability.
The qualifying costs must be incurred after the ACAP launch date and may only include the following types of explicit costs incurred for the purpose of conducting ACAP:
- Fees charged by Certified Public Accounting (CPA) firm or its tax affiliate;
- Fees charged by tax advisory consultant [to assist the Internal Audit (IA) team];
- Fees charged by external consultant in preparing the necessary documentations for ACAP purpose. This is confined to documentation of GST processes of the relevant business units or entities selected for ACAP Review [please refer to paragraph 1.18 to 1.23 of GST ACAP Review Guidance (923KB)];
- Charges for engaging contract staff wholly to perform ACAP as part of IA team.
Preparatory costs incurred in engaging external consultants to advise or review the readiness of GST Control Framework before embarking on ACAP may form part of the qualifying costs, subject to the following conditions:
(i) the date of engagement of the service (i.e. based on letter of engagement) is
after 15 Feb 2011; and
(ii) the notification date to participate in ACAP is
within 6 months from the date of engagement.
Such preparatory costs must exclude any capital expenditure incurred to improve your systems and processes to be ready for ACAP.
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How to apply for ACAP co-funding?
Applicants for co-funding should complete Section 4 of the form GST F23 - Notification of Participation of GST Assisted Compliance Assurance Programme (ACAP) (313KB) and submit the form together with the following documents for IRAS’ consideration:
Charges for the conduct of ACAP
(i) Fee quote from the external consultant whom the applicant for co-funding intend to engage (e.g. CPA firm/tax advisor) stating the work scope
(ii) Estimated costs of engaging contract staff
Upon IRAS' acceptance of the co-funding application, documentary evidence such as engagement letter for (i) and copy of contract for (ii) should be forwarded to IRAS within 3 months from date of acceptance.
Preparatory costs incurred on assessing readiness of GST control framework
(iii) Letter of engagement from the external consultant, which is dated no earlier than 6 months before the date of notification to participate in ACAP. This is not applicable if such costs are included in the same letter of offer in (i).
The ACAP Applicant must submit the ACAP Report to IRAS for assessment of ACAP status within 12 months of the acceptance date.
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How are funds allocated?
- For applicants successful in obtaining in-principle co-funding, IRAS will reserve the co-funding amount (“reserved amount”) based on 50% of the qualifying costs submitted in form GST F23 (capped at $50,000).
- The actual reimbursement is contingent upon the Applicant attaining ACAP status.
- If there are changes in the co-funding amount (e.g. due to change in ACAP Review Arrangement) after the acceptance date, IRAS may consider a one-time request to increase the reserved amount (subject to fund availability) provided that:
(i) the request is made in writing by the authorised personnel of the Applicant, within 6 months from the acceptance date; and
(ii) the additional projected amount is supported with documentary evidence.
Upon IRAS’ acceptance of the request, the reserved amount will be revised accordingly (“revised reserved amount”).
- The ACAP Applicant will be informed of the amount being reserved.
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How much is the co-funding amount?
- Co-funding of qualifying costs incurred is on a reimbursement basis. In other words, you have to incur and make payment to the relevant parties first and seek reimbursement from IRAS after you are awarded an ACAP status.
- The amount you get will be based on the lower of:
(i) reserved amount or revised reserved amount as approved by IRAS; or
(ii) 50% of the net qualifying costs incurred, capped at $50,000. Net qualifying costs refers to the actual qualifying costs incurred (i.e. net of any rebates or discounts given) less subsidy sought or to be sought from other government agencies.
If the reserved amount is less than 50% of the net qualifying costs, IRAS will only reimburse based on the amount reserved for you. This is to be fair to other ACAP applicants and to give certainty that funds will be available based on the reserved amount.
For example, if the reserved amount is $30,000 and 50% of the net qualifying costs incurred is $50,000, you will only be reimbursed $30,000.
On the other hand, if 50% of the net qualifying costs is lower than the reserved amount, IRAS will only reimburse 50% of the net qualifying costs.
For example, if the reserved amount is $30,000, but 50% of the net qualifying costs incurred is only $20,000, you will be reimbursed $20,000 instead of $30,000.
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How to claim for ACAP co-funding?
- An ACAP Applicant awarded with ACAP status may seek for reimbursement of the qualifying costs. The following documents have to be submitted to IRAS within one month from the date of accord of ACAP status:
(i) Form GST F24 - Claim for Co-funding of GST Assisted Compliance Assurance Programme (ACAP) (186KB);
(ii) Copy of invoices issued by the CPA firm/tax advisory consultant or contract signed (for hiring of contract staff) for the actual fees incurred [IRAS may request to sight the original invoice];
(iii) Payment evidence to the CPA firm/tax advisory consultant (e.g. bank statements to show payment and clearance of cheque).
- IRAS makes the final decision to reduce or reject any claim for co-funding.
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What is the mode of refund for ACAP co-funding?
Successful applicants of the co-funding incentive will be given a cheque within one month from the receipt of the claim form and complete set of supporting documents.
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When do you need to repay the co-funded amount to IRAS?
- You are required to inform and re-pay IRAS if any of these events take place after you received reimbursement of the qualifying costs:
- subsequent downward adjustment (e.g. discount received, credit notes issued, etc.) in the qualifying costs charged by the ACAP Reviewer/tax advisory consultant/service provider;
- you receive any subsidy relating to the ACAP project from any government agencies;
- you or your directors or shareholders or any other persons related to the company receive any monies, rebates, discounts, refunds relating to the reduction of the qualifying costs, whether in the form of cash or otherwise.
- IRAS shall make adjustment or recall any part of the co-funding which has been reimbursed if you obtained the amount by giving misleading information.
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Go to incentive on waiver of penalty.