Individual Tax Filing in Singapore
Individual Tax Filing is the reporting of your personal income and claiming of reliefs and deduction to arrive at the taxable personal income where the appropriate tax rate is applied to ascertain your personal tax payable. It is different from corporate tax (tax filing of Company) and Goods & Services Tax (consumption tax filing).
Individual Tax Filing in Singapore has become simpler and easier over the years as electronic filing and streamlining of filing procedure is introduced. The due date for filing of individual tax return is 15 April. The Inland Revenue Authority of Singapore (IRAS) has extended the due date for electronic filing to 18 April.
Status of Individual Tax Filing
When you log into the IRAS Portal, you should be able to check your filing status. Let us explain what does each status mean.
- Required to File - This means that you have to file the tax return regardless of how much you have earned. Some taxpayers have the perception that they need not file a tax return if their income is not more than SGD22,000. However, this is incorrect if your filing status is “Required to File”.
- Not Required - Only when your filing status is “Not Required” and your income is not more than SGD22,000, you can choose not to file the tax return. However, if your income is more than SGD22,000, you need to file your income tax return even when your status is “Not Required”. You can proceed with the filing by choosing “Individuals” on the menu bar and select “File individual Income Tax Form”
- No Filing Service - When your status is “No Filing Service”, it means that your Notice of Assessment or NOA with tax payable will be sent to you based on the income transmitted by your employer under that auto-inclusion scheme and your Personal Relief Claims last year. You do not have to file your tax return if you do not have other income (e.g. rental income) to be reported in addition to the employment income transmitted to IRAS and do not wish to change your Personal Relief Claims. If you have other income to be reported and/or changes to your Personal Relief Claims, you should file your tax return to effect the changes.
- Processing - In the midst of generating your Notice of Assessment finalizing your tax payable.
- Processed - Your assessment is finalized and the Notice of Assessment should have been sent out.
Employer who is Not under AIS
If your employer is not participating in the Auto-Inclusion Scheme or AIS for Employment Income, you will have to enter your employment income details yourself based on the Form IR8A you received from your employer.
You can find out if your employer is involved via the AIS Search tool on the IRAS website.
Taxable Income in an Individual Tax Filing
All income (i.e. trading, employment, rental and other income) derived in Singapore during the calendar year - 1 January to 31 December - must be included in your individual tax filing.
If you are a Sole Proprietor or a Partner of a business, you are required to report your Sole Proprietorship and Partnership income in your Individual Tax filing. If your Sole Proprietorship income is more than SGD500,000, you are required to submit the Statement of Accounts (i.e. similar to Profit & Loss Statements) to the IRAS. If you are a Partner, please note that you need to file a partnership return (i.e. Form P) by 15 April in addition to your Personal Tax Return.
Claiming Personal Reliefs
Personal reliefs and rebates can be claimed in your individual tax filing if they meet two main conditions - the first being if you are Singapore tax resident. From there, the other condition depends on the type of personal relief you are claiming. In each of these reliefs you will find further conditions that must be satisfied before you qualify for the relief.
Common Errors when E-filing Personal Tax Return
Taxpayers frequently thought that the electronic filing is completed when they receive the Consolidated Statement showing their Income and Reliefs. Please note that the “Submit” button must be clicked and the acknowledgement page must appear to confirm that the electronic individual tax filing is completed. Please print a copy of the consolidated statement and acknowledgement page.
Another common errors are duplicate claims on Personal Reliefs (i.e. 2 persons claiming the same reliefs on the same child or parent).
Deadline to Pay Your Tax
Within one or two weeks after you have filed your tax return, you should receive the Notice of Assessment (NOA). However, it may take longer for some individuals.
Please note that it is your responsibility to ensure that your NOA is accurate. If you have any other income that is not shown in the NOA, or your relief claims in the NOA are incorrect, you should write to IRAS to inform them within 30 days from the date of NOA.
Payments on your individual tax filing can be made via a one-time payment through ATM, Singapore Post, or cheque. You can also apply for the General Interbank Recurring Order (GIRO) to pay your tax on interest-free instalment plan.
Did you receive an IRAS letter informing you to conduct a self-review and to answer some questions? If yes, it is the early part of IRAS query. Engage our service to address IRAS query satisfactorily to avoid further audit.
Whether an income is taxable or an expense is deductible can sometimes be confusing. We are here to provide the necessary tax advice so that you do not break the law.