Part of being a working adult is filing your tax return every year. Unfortunately, filing taxes can sometimes be complicated and frustrating. But it doesn’t have to be!
Singapore has one of the lowest personal income tax rates in the world. It is based on a progressive structure that starts at 0% and ends at 22% for employees and self-employed individuals earning above S$320,000.
For the Year of Assessment 2022, you have from 1 March 2022 to 18 April 2022 to file your taxes online. All completed forms must be submitted to Singapore Tax Authority by 15 April 2022.
Who Needs To Pay Income Tax in Singapore?
Before you start filing your income tax, you need to understand whether you are an eligible taxpayer. Eligible taxpayers are those who are earning, deriving, or receiving income in Singapore – unless specifically exempted under the Income Tax Act or by Administrative Concession.
The income can be either from a full-time job, sole proprietorship, freelancing, or investments in Singapore.
Generally, you are required to submit your Income Tax Return in the preceding calendar year:
- Your total gross income is more than S$22,000 in a year; or
- You have self-employed income amounting to more than S$6,000 in net profit; or
- You are a non-resident who accrued income from Singapore.
Other eligible taxpayers include:
- Those who are working outside Singapore but with an employment status under Singapore.
- Singapore Citizens or Singapore Permanent Residents who normally reside in Singapore except for temporary absences.
- Foreigners who stayed or worked in Singapore (excluding the director of a company) for 183 days or more preceding the year of assessment.
Taxable income refers to income earned or derived in Singapore or received from Singapore that is subject to tax. However, there are certain types of income that are non-taxable. These are not taken into account during the taxation process.
What is Taxable Income?
- Employment income
- Self-employment income
- Salary bonus
- Withdrawals from Supplementary Retirement Scheme (SRS)
- Gains or profits from any trade or business
- Income from investments, such as dividends, interest, and rental
- Royalties, premiums, and other profits from property
What is Non-Taxable Income?
- Capital gains on the sale of fixed assets
- Capital gains on foreign exchange on capital transactions
- Windfalls, such as winnings from lottery
- CPF Life Payouts
- Income earned by individuals while working overseas (with a few exceptions)
How Much Income Tax Do I Need To Pay?
Here in Singapore, the personal income tax rates for resident taxpayers are progressive. This means the higher your income, the higher your taxes. The highest personal income rate is 22%.
Here is are the taxable income and its corresponding income tax rate (YA 2017 to YA 2023) to help you understand how much Singapore income tax you need to pay:
Resident Tax Rates
|Chargeable Income||Income Tax Rate (%)||Gross Tax Payable ($)|
|First $20,000 |
|First $30,000 |
|First $40,000 |
|First $80,000 |
|First $120,000 |
|First $160,000 |
|First $200,000 |
|First $240,000 |
|First $280,000 |
|First $320,000 |
In excess of $320,000
(Source: Inland Revenue Authority of Singapore or IRAS)
You may visit the IRAS website to get the most updated information.
Non-Resident Tax Rates
Employment Income: Employment income of non-residents is taxed at a flat rate of 15% or the progressive resident tax rates – whichever is the higher tax amount.
Director’s Fee, Consultation Fee, and other income: The tax rate for non-residents is currently at 22%. This applies to all income including rental income from properties, director’s fees, and pension but excluding employment income and certain taxable income at reduced withholding rates.
When Do I Need To File for Income Tax?
Filing your tax return is a yearly obligation. You can start filing your Income Tax Return from the end of the first quarter of the year. Additionally, you can choose to file your returns online via IRAS every year or by mail.
All completed forms must be submitted to the Singapore Tax Authority by the 15th of April. For 2022, the assessment for income is on income earned from 1 January 2021 to 31 December 2021.
|Filing Due Dates|
|E-Filing||18 April 2022|
|Paper Filing||15 April 2022|
If you need additional time to file your Income Tax Return, you can submit a request on the IRAS website.
How To File Your Personal Income Tax in 2022
As previously mentioned, you can file your returns through electronic filing (online) or paper filing. Most taxpayers file their income tax returns online.
Steps To e-File Your Income Tax Return
Step 1: Have a Singpass or Singpass Foreign user Account (SFA)
If you don’t already have a Singpass account, you may apply for Singpass online. You will receive it within 4 working days.
Step 2: Prepare all the necessary documents
- Form IR8A (if your employer is not participating in the Auto-Inclusion Scheme)
- Particulars of your dependents, such as child or parent for new relief claims
- Details of rental income from your property and other income (if any)
- For self-employed or partners, you will need to bring with you the business registration number/partnership tax reference number.
Step 3: Log in to myTax Portal
Use your Singpass/SFA to log in to myTax Portal.
- Click on Individuals > File Income Tax Return
- Complete the electronic tax form. This will take about 5-10 minutes to complete.
Note: Your session will expire if you leave it idle for more than 20 minutes.
Step 4: Verify your details
If your employer or organization participates in the Auto-Inclusion Scheme, IRAS will pre-fill your “Income, Deductions and Relief Statement”. Verify that all the pre-filled information is accurate and complete. If there is any discrepancy, you’ll need to check with the relevant organization directly.
Whether there’s a discrepancy or none, proceed to e-File your Income Tax Returns by 18 April every year.
Step 5: Declare other sources of income, if any:
If you received any other sources of income (e.g. rental income), you need to enter the income in the boxes provided. Click on the “Update” buttons to declare your additional income.
Step 6: Update tax reliefs
Did you qualify for additional or new tax relief? Include your claims. On the other hand, if you have claimed any reliefs in the past that you are no longer qualified for, you’ll need to remove them.
- Remove the pre-filled reliefs you no longer qualify for
- Change or update the amount of reliefs that are shared with other claimants
- Make new claims for reliefs or deductions you’re qualified for.
Step 7: Receive Acknowledgement receipt
After successfully filing your electronic form, you will be given an acknowledgment receipt. Make sure to save a copy or print the page.
Advantages of e-filing:
- Filing tax returns is easier when you do so via myTax Portal. You will be directed to the acknowledgment page when you have successfully filed your tax returns.
- 24/7 access to your account.
- Longer filing period. You have up to 18 April 2022 to file your tax returns unlike for paper tax which is due on 15 April.
Filing a Paper Income Tax Return
Most taxpayers prefer to file their Income Tax Returns online. For those who prefer to file a paper Income Tax Return, they will receive the relevant tax form from IRAS between February to March every year.
Income Tax Return for Tax Resident Individuals
- Form B1 2022
- Appendices 1 and 2
- Return envelope
Income Tax Return for Self-Employed Individuals
- Form B 2022
- Appendices 1 and 2
- Return envelope
Income Tax Return for Non-Resident Individuals
- Form M 2022
- Return envelope
Make sure to submit your paper tax return using the return envelope provided on or before 15 April.
How Can I Pay for Income Tax?
You can pay tax through the following:
- GIRO for individual income tax. You can choose between one-time payment or 12-month interest-free installments.
- Pay tax just by scanning the PayNow QR code in myTax Portal
- Internet banking, mobile banking, AXS, Telegraphic Transfer, or SingPost
- Head to a post office to pay using NETS
Note: IRAS does not accept credit card payments. This is because the transaction cost charged by credit card companies is high. However, you can use your credit card to pay your taxes on AXS e-Station or AXS m-Station.
What Happens if I Fail To Pay My Taxes on Time?
The payment due date is one month from the date of the Notice of Assessment (Tax Bill). Failing to pay your taxes by the due date will lead to late payment penalties.
If you still fail to pay your taxes, then IRAS may appoint agents, such as your bank, employer, tenant, or lawyer to recover the overdue or unpaid tax.
On top of that, IRAS may also issue a Travel Restriction Order (TRO) to stop you from leaving the country. Lastly, you may also be summoned to Court.
Can I appeal for a waiver of late payment penalty?
What if I have difficulty paying my taxes?
You may apply for a longer payment plan via the myTax Portal > Apply for Payment Plan. If your payment plan is approved, make sure to follow the payment plan scheduled. Failing to do so will result in the cancellation of the plan, plus you will face the consequences of late or non-payment of taxes.
Hiring a Professional Tax Agent
You may also seek professional advice and help in filing your Income Tax Returns. IRAS permits authorized tax agents to file tax returns on your behalf. You can authorize your tax agent to access your myTax Portal accounts using an Authorization Code.
Frequently Asked Questions
How Do I Verify the Details in My Income Tax Return?
You can verify your pre-filled details and preview your tax bill at myTax Portal using your SingPass or SingPass Foreign user Account (SFA) from 1 May to 18 April.
Once you’ve confirmed that the information is correct and your tax bill is accurate, you may request an early assessment.
What Should I Do Once I Receive My Tax Bill?
The tax bill indicates the amount of tax you need to pay. So make sure that your tax bill is accurate.
If you have other sources of income that are not listed in the tax bill or your tax relief claims in the bill are incorrect, immediately correct the information via myTax Portal > Object to Assessment within 30 days from the date of your tax bill.
You can also send an email listing the details of your amendments. Non-resident individuals are advised to submit the amendments via email.
You’ll need to pay the amount of tax within 30 days of receiving the Notice of Assessment (NOA). This is regardless of whether you’ve submitted an amendment to IRAS or not. Any outstanding tax after 30 days will incur penalties.
Am I Still Required to File a Tax Return in Singapore If My Income Is Low?
You don’t need to pay tax if your annual income is less than S$22,000. However, this is applicable to tax residents only.
Note: If you have been informed by IRAS to submit your tax form, then you are required to file returns.
What if I do not have any income in the previous years?
You’ll need to declare zero income in your tax form and submit it before 15 April (paper) or 18 April (e-filing).
Am I Qualified for Tax Relief?
Tax reliefs help reduce the amount of taxes you’ll need to pay. You are eligible for personal tax reliefs and rebates if you are a Singapore Tax Resident and if you fulfill the criteria of the reliefs and rebates.
In Singapore, some of the most common tax reliefs or deductions include:
- Parent Relief
- Child Relief
- Spouse/Handicapped Spouse Relief
- CPF Relief for Employees/Self-Employed
- NSman Relief
- Grandparent Caregiver Relief
- Working Mother’s Child Relief
- SRS Relief
- Course Relief
The tax relief is capped at S$80,000. That said, you won’t be able to claim more tax relief if you’ve reached the said cap. To check if you will be affected by the relief cap, you can go here.
How Do I Check Whether My Employee Has Participated in the AIS for Employment Income?
To check if your employer is in the AIS, simply go to go.gov.sg/AISSearch. Here, you can also check If they have submitted for the Year of Assessment of 2022.
If your employer is in the AIS, you don’t need to declare your employment income. Additionally, income information will be pre-filled in your Tax Return.
What if my employer is not under AIS?
Your employer should provide you with Form IR8A by 1 March. You may also ask your employer for a copy. Provide all the necessary details when you file your taxes as indicated in your Form IR8A.
How Much Is the Penalty for Late Payment?
Unless you are on an approved installment plan, you will incur a 5% late payment penalty for unpaid taxes. Here’s an example:
The due date of the NOA is 1 June 2022 and the tax payable is S$3,000. If you fail to pay it on or before 1 July 2022, you will pay S$150 (5% of S$3,000) late payment penalty.
Filing taxes is one of the responsibilities that come with being an adult. It is important to follow the instructions for tax forms as well as for filing tax returns. Thankfully, the availability of e-filing reduces the need for unnecessary paperwork and some information is already pre-filled, making things a lot easier.
- If you are earning a total annual income of S$22,000, you are required to pay personal income tax.
- IRAS will provide reminders via email and text to file your taxes so make sure to file your tax returns from 1 March to 18 April (e-filing).
- Generally, income earned or derived in Singapore or received from Singapore is subject to tax. However, there are certain types of income that are non-taxable.
- The personal income tax rates for resident taxpayers are progressive. The highest personal income rate is 22%.
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