It is very important to be prepared for the tax season 2023 Singapore. With the right information and preparation, the applicant can ensure a smooth and stress-free tax season in Singapore.
If the applicant only had auto-included income in the prior year, they might be chosen for the Direct Notification of Assessment initiative. They are exempt from filing an income tax return.
The tax bill would be calculated based on their income from the employer and the relief claims they made the previous year.
The law requires a taxpayer who elects to receive the Notice of Assessment without having to file to notify IRAS of any errors in his income information and/or relief requests made in the tax bill. There are consequences for not doing so.
The filing only commences on 1 March because this will enable the pre-filling automatically include information in the income tax return by 1 Mar for the applicant’s convenience.
To ensure that the applicant will receive timely reminders regarding their tax filing obligations, they should update their contact information in the myTax Portal (including cellphone number and email address).
TAX YEAR VS. TAX SEASON
The tax year is the real period during which the applicant generates income, pays income taxes, gives to charities, carries outside jobs, etc.
They submit, report, and pay any taxes due from the previous year during tax season.
RECEIVING A LETTER/SMS OF NO-FILING SERVICE (NFS)
The applicant is not needed to file an income tax return if they got a letter or SMS informing you that they have been chosen for NFS.
Using their Singpass or Singpass Foreign User Account (SFA), they can preview the tax bill and check the accuracy of their auto-included information at myTax Portal from 1 March to 18 April. They may ask for an early assessment if the tax bill is accurate.
The applicant should log in to myTax Portal to file the Income Tax Return if they desire to make any changes to the income information or relief requests.
From the end of April forward, the applicant will receive your Notice of Assessment or tax bill (in digital or physical version). It is their responsibility to ensure the accuracy of their tax bill. Within 30 days of the date of the tax bill, the applicant must notify IRAS of any difference through the “Object to Assessment” digital service at myTax Portal if they have any additional income that is not shown on the tax bill or if their relief claims are inaccurate.
DOCUMENTS NEEDED TO FILE AN INCOME TAX RETURN IN SINGAPORE 2023
Make sure to have the following documents available before logging into myTax Portal:
- Form IR8A (if the applicant’s employer is not participating in the Auto-Inclusion Scheme)
- Singpass/Singpass Foreign User Account
- Information about their dependents (such as their parents or children) for new relief claims
- Information about the property’s rental income, including gross rent, expense claims, and any other income. Company registration number or partnership tax reference number (for self-employed and partners only)
Is it necessary to declare employment income information?
The employer must submit the applicant’s income information to IRAS by 1 March of each year if they participate in the Auto-Inclusion System (AIS) for Employment Income. Their work income information will already be included in the income tax return, so they don’t need to report it.
The applicant may use the AIS Organisation Search to check if their employer:
- has submitted for the Year of Assessment 2023 and
- is in the AIS.
The applicant must still file the income tax return even if their employer has already given IRAS the employment income information if they receive a filing notification, have additional income to report, or wish to apply for personal reliefs.
By March 1st, if the company does not take part in the AIS, they should have given the applicant the Form IR8A. According to the information on the Form IR8A, the applicant must submit the specifics while filing the taxes.
Claiming expenses
In general, the applicant can write off expenses that were ‘wholly and completely’ incurred in order to obtain income.
They can choose to claim rental expenses based on 15% of the gross rental income from the rented residential property rather than the actual amount of deductible expenses incurred, which will simplify the tax filing process. They can deduct the interest paid on the loan they used to buy the property in addition to the 15%.
If the applicant is a Singapore tax resident and met the requirements for the applicable reliefs or rebates in the prior year, they may be eligible to claim personal reliefs and refunds.
Filing mistakes to avoid
Typical filing errors include failing to file an income tax return after receiving a notice from IRAS to do so and utilizing relief claims from past years for the current Year of Assessment despite the fact that the circumstances have changed.
For more information, refer to common filing mistakes to avoid.
After clicking “Submit,” the applicant will see an acknowledgment page if the filing was successful. The applicant must verify the filing status at myTax Portal (“Individuals” > “Check Filing Status”) if they do not see an acknowledgment page.
HOW TO CALCULATE AND PAY TAX IN SINGAPORE 2023
The Tax Calculator for Resident Persons can be used to determine the tax liability if the applicant was a tax resident in the previous year and was physically present in Singapore for at least 183 days or engaged in employment there between January 1 and December 31, 2022.
Refer to our page corporate taxation in Singapore for more information on Pte Ltd tax matters.
Upon receiving their tax bills, taxpayers who are having financial difficulties are recommended to get in touch with IRAS to establish a workable payment plan. By utilizing the Singpass and the digital tool “Apply for Payment Plan” at myTax Portal, they can request a longer payment plan if they pay via GIRO.
Reach out to us at Relin Consultants for further assistance.
FAQs
When will I receive my tax bill?
Beginning around the end of April 2023, you should start receiving your tax bill, commonly known as a Notice of Assessment (NOA).
When your tax bill is finalized, if you’ve updated your IRAS account with your Singapore cell number, you’ll get an SMS notification. Log in to myTax Portal using your Singpass or Singpass Foreign user Account (SFA) and select “Change Contact Information” to update your cell phone number.
What should I do when I receive my tax bill?
You must verify that the information on your tax bill about your income and relief claims is correct. Notify IRAS of any discrepancy within 30 days of the date of your tax bill using the “Object to Assessment” digital tool in myTax Portal if you have any additional income that is not listed on your tax bill or if your relief claims are inaccurate.
What should I do if there is a discrepancy in my pre-filled employment income?
To get more information, kindly get in touch with your employer. If any further modifications exist, your employer will send IRAS information about them. You will receive the updated tax bill from IRAS accordingly.
How do I get a refund for my tax credit?
You are not required to make a refund claim. After 7 days of the credit’s emergence, more than 90% of the tax credits were reimbursed.
Refunds in the form of tax credits are issued to taxpayers who pay their taxes using GIRO and are received through the same GIRO account. Refunds will be sent to you via checks if you used someone else’s bank account to make GIRO payments. Make a deposit of the check into your bank account before the three-month expiration date.
How to submit an amendment to my tax bill online?
For any of the following reasons, you can make an objection using the digital “Object to Assessment” function at myTax Portal:
- Change in tax residency status,
- amend deduction and relief claims, amend income declarations, and
- claim parenthood tax rebates (non-resident to the resident, if applicable).
You can easily view the pre-filled values in the initial tax assessment with the use of this digital service. Next, after submitting the objection, you will be able to see a consolidated view of the updated income, deductions, and reliefs and get an immediate acknowledgement.
Within 10 working days, we will send you the updated tax bill (digital or paper) or inform you of the progress of your complaint.
