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This year, 7 out of 10 taxpayers (or more than 1.6 million of 2.3 million taxpayers) are qualified for the No-Filing Service (NFS). The Inland Revenue Authority of Singapore (IRAS) will also roll out initiatives to simplify the tax filing experience. More people will get direct tax bills rather than filing notices, skipping the tax filing process entirely. More partnerships will also benefit from simplified filing with a 2-line statement for up to $200,000 in revenue. Taxpayers are encouraged to sign up for GIRO to pay their taxes and get tax refunds securely and straightforwardly. IRAS will also be introducing PayNow as an alternative tax refund mode for taxpayers who are not on GIRO.

Making the Tax Filing Process Easier

More to Receive Direct Tax Bills

Taxpayers on the NFS are not obliged to file an income tax return. Still, they must verify the accuracy of their auto-included income information and determine their eligibility for any tax reliefs claimed.

This year, about 120,000 taxpayers on the NFS will benefit from the Direct Notice of Assessment (D-NOA) scheme. They will receive their tax bills directly, with their income details and tax reliefs pre-filled. After receiving their tax bills, taxpayers who want to revise their income and/or tax relief information can still file an amendment utilizing myTax Portal’s Object to Assessment digital service within 30 days.

2-Line Statement Extended to Partnerships

In YA2022, partnerships will benefit from streamlined tax filing with the 2-line statement, i.e. Revenue and Adjusted Profit/Loss, for revenue of up to $200,000. Previously, only sole proprietors with incomes of $200,000 or less were eligible to file the 2-line statement. This year, an estimated 17,000 partners, in addition to over 21,000 sole owners, will benefit from streamlined filing processes and record-keeping obligations. Only when their sales surpass $200,000 will partners and sole proprietors be required to declare their company income using the 4-line statement, i.e. Revenue, Gross Profit/Loss, Allowable Business Expenses, and Adjusted Profit/Loss.

New Filing and Relief Checkers on the IRAS Website

Taxpayers, including sole proprietors and partners, who are obliged to file an Income Tax return between 1 March and 18 April 2022 should do so using myTax Portal. The filing checker and relief checker on the IRAS website, which offers customized material suited to distinct individual profiles, allows taxpayers to verify their filing obligations and the tax reliefs they qualify for this year. Employees and directors whose employers do not participate in the Auto-Inclusion Scheme (AIS) are reminded to declare their job income because it is not automatically included.

Greater Convenience with Digital Tax Bills and Payment/Refund Modes

Nine out of ten taxpayers will get digital tax bills.

More than 90% of taxpayers will get digital tax invoices through myTax Portal this year. Taxpayers should keep their contact information and notification options on myTax Portal up to date to get timely alerts when their tax bills are ready for viewing.

For Easier Tax Payments and Refunds, Use GIRO or PayNow.

Taxpayers are encouraged to enroll in GIRO to get secure and smooth tax payments and refunds. Those who pay through GIRO can take advantage of up to 12 months of interest-free installment payments. From July 2022, IRAS will also introduce PayNow as a new tax refund mode1 for taxpayers who are not on GIRO. Taxpayers will be able to get tax refunds into their bank accounts quickly and securely due to any overpayments or erroneous payments. Taxpayers may learn more about GIRO and PayNow for tax transactions by visiting the IRAS website.

Stay Vigilant Against Phishing Scams This Tax Season

Due to the increase in phishing schemes, IRAS would like to remind taxpayers to be cautious and avoid being duped by phony SMSes, emails, and WhatsApp messages with a faked IRAS logo. To prevent being duped, only click on URLs that begin with “iras.gov.sg” or “go.gov.sg.” Taxpayers should utilize applicable forms and digital services in myTax Portal protected by Singpass login for tax transactions such as filing and payments.

IRAS will not distribute PayNow QR codes to taxpayers by physical or digital notifications, SMS, emails, or WhatsApp messaging. PayNow QR codes for tax payment can be produced only after signing in to myTax Portal or selecting the “Make Tax Payment” option on the IRAS website chatbot. IRAS will also not seek personal information or private information from taxpayers via email or insecure online connections.. More information is available in the IRAS’ Advisory on Scam and Fraudulent Activities.

Voluntary Disclosure of Errors for Reduced Penalties

Taxpayers who have under-declared income previously or submitted erroneous expenses or relief claims should make a voluntary disclosure on myTax Portal as soon as possible. Penalties for voluntary disclosures may be reduced if qualifying conditions are met.

To learn more about Singapore incorporation, economy, banking, etc., feel free to call/WhatsApp us at +65 90612851 or email us at aceglobalacct@gmail.com. Alternatively, you may leave us a reply using our contact form below.

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