Tax Governance Framework (TGF)

What is the Tax Governance Framework?

On 17 February 2022, the IRAS introduced the Tax Governance Framework (TGF), alongside the Tax Risk Management & Control Framework for Corporate Income Tax (CTRM) for companies to demonstrate their good tax governance policy for corporate income tax, Goods and Services Tax (GST) and withholding taxes.

The TGF is a voluntary compliance initiative that aims to:

• Encourage businesses to attain and maintain good standard of tax governance
• Raise awareness of tax governance to the Board level
• Reduce compliance costs through a collaborative relationship with IRAS

Building Blocks of TGF

The tax governance policy must include details of the company’s tax risk management framework based on the three essential building blocks.

Benefits of TGF

1. Corporate Income Tax (CIT) and Withholding Tax (WHT) errors

A one-time extended grace period of two years, for the voluntary disclosure of CIT and WHT errors made within two years of the approval date of the  TGF application.

2. GST

For GST registered business accorded with Assisted Compliance Assurance Programme (ACAP) status

A one-time extended grace period of three years for voluntary disclosure of GST errors made within two years from the approval date of the TGF application.

For GST registered business accorded without ACAP status

A one-time extended grace period of two years for voluntary disclosure of GST errors made within two years from the approval date of the TGF application.

Application process for TGF status

Companies are required to:

• Publish their board endorsed Tax Governance Policy on their corporate websites or in their annual reports. This tax governance policy must include details on how it meets the requirements of the three building blocks of the TGF and its key practices for TGF.
• Complete the TGF Declaration Form, signed off by the Chief Executive Officer or Chief Financial Officer.
• Submit the TGF Application Form for IRAS’s review

The status granted is valid as for as long as the tax governance policy remains on the company’s website and the tax governance practices are in order. No renewal of the TGF status is needed.