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Singapore’s IRAS Simplifies Tax Filing for Self-Employed

The Inland Revenue Authority of Singapore (IRAS) has introduced two initiatives to streamline tax filing for self-employed individuals (SEPs) in 2024, particularly for commission agents and delivery workers.

• Pre-filled Tax Returns: Over 100,000 commission agents will benefit from pre-filled income information in their tax returns, sourced from collaborating organizations.
• Expanded Fixed Expense Deduction Ratio (FEDR): IRAS extends the FEDR benefit to delivery workers. This allows eligible SEPs to claim business expense deductions based on a predetermined percentage of their gross income, simplifying the filing process.

To avoid late filing penalties, all individual taxpayers, including employees and the self-employed who are obligated to file an Income Tax Return, should submit it electronically via the myTax Portal by April 18, 2024.

Simplified Tax Filing for Over 1.8 Million Taxpayers

The Inland Revenue Authority of Singapore (IRAS) offers a No-Filing Service (NFS) for over 1.8 million taxpayers. Those eligible will be notified and won’t need to file an Income Tax Return this year. However, they are still required to:

• Verify Accuracy: Ensure the pre-filled income information on their IRAS account is accurate.
• Review Tax Reliefs: Confirm their eligibility for any claimed tax reliefs.

Direct Notice of Assessment (D-NOA)

Approximately 1,800,000 taxpayers under the NFS will receive a Direct Notice of Assessment (D-NOA). This means they will not receive a filing notification from IRAS but will instead receive their tax bills directly from mid-March 2024. These bills will include pre-filled income information and tax reliefs.

Taxpayers receiving D-NOA bills can still make changes to their income or tax reliefs within 30 days of the bill date. This can be done through the “Object to Assessment” digital service on the myTax Portal.

Standard Tax Filing Process

Taxpayers who receive a filing notification from IRAS are required to submit their Income Tax Return electronically via the myTax Portal by April 18, 2024.

This revision clarifies the process for both NFS and standard filing, emphasizes deadlines, and streamlines the information for better understanding.

IRAS Requires Commission Intermediary Reporting

IRAS introduced a new requirement for ~700 commission-paying intermediaries in 2024. They must collect & submit their agents’ income info by March 1st for pre-filled tax returns and potential NFS eligibility. Agents (e.g., real estate, insurance) can verify submissions via the IRAS Commission-Paying Intermediary Search Facility. Timely submission is crucial for intermediaries. [1]

Simplified Expense Deductions for Delivery Workers

Self-employed delivery workers earning $50,000 or less annually can now claim tax deductions based on a fixed percentage of their gross income (Fixed Expense Deduction Ratio – FEDR) for deliveries (food and goods) performed from 2023 onwards. This simplifies the process compared to claiming deductions for actual expenses incurred.

Eligibility and FEDR Rates:

• Workers must be self-employed.
• Total annual gross income from deliveries must be $50,000 or less.
• The FEDR claimed depends on the delivery mode used (see table below).

FEDR Rates by Delivery Mode

FEDR Application for Multiple Delivery Modes:

• Delivery workers using multiple modes can apply the corresponding FEDR to income earned for each mode separately. [2]
• Importantly, workers must choose to apply the FEDR consistently – either to all delivery modes used or none at all. [3]

History of the FEDR:

• The FEDR was initially introduced for taxi and private hire car drivers in Year of Assessment (YA) 2019.
• It was then extended to self-employed commission agents earning $50,000 or less annually in YA 2020.

Convenient Tax Payments with Digital Options

For a smooth and secure tax payment experience, we encourage taxpayers to utilize digital payment methods like GIRO and PayNow upon receiving their tax bills in late April 2024. These options eliminate the need for cheques, saving time and potential fees.

Stay Informed for Timely Payments

Ensure your contact details and notification preferences are updated on the myTax Portal. This ensures you receive timely alerts when your tax bills are available for viewing and payment.

Need Help with Filing or Payment?

IRAS offers various assistance channels for taxpayers needing help with filing or payment:

• Chat Online: Available weekdays from 8am to 5pm.
• Email: Submit inquiries directly through the myTax Portal.
• Helpline: Call 1800 356 8300 for phone assistance.
• Appointments: Schedule in-person assistance at least two working days in advance.
• In-Person Service: Visit ServiceSG Centres or counters located at Community Clubs for assistance with filing or digital payments. These operate daily from 9am to 6pm (Centres) and 10am to 6pm (Community Clubs), except for public holidays.

Find Out More:

For more details on tax filing and payment options, please visit the IRAS website: https://www.iras.gov.sg

Important Notes for Commission Intermediaries and Delivery Workers:

Commission Intermediaries: Submit agents’ income info by Mar 1, 2024 for pre-filled returns. [1]

Delivery Workers: See “Claiming FEDR for Multiple Modes” (attached) for FEDR application details. [2] Claim FEDR consistently for all modes used or not at all. [3]

ServiceSG Centres: Due to construction, visit alternative locations listed for in-person assistance. [4]

If your company needs help filing taxes for the year 2024, or requires assistance with 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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