Revenue Tax Submitting 2021: A Step-by-Step Information to Surviving Tax Season 

Regardless of paying earnings tax yr after yr, I draw a clean each time I obtain IRAS’s annual reminder to file my taxes. That is adopted by a minor panic assault as I attempt to keep in mind my SingPass password.

This yr, the MoneySmart staff has put collectively a easy step-by-step information to earnings tax submitting for YA2021, so that you don’t get misplaced within the depths of IRAS’ web site.

Do you could file your earnings tax in 2021?

So long as you earned greater than $22,000 up to now Yr of Evaluation, you’ll must pay earnings tax. Nevertheless, chances are you’ll or might not must file your taxes.

If you happen to acquired a letter or SMS informing you that you simply’ve been chosen for No-Submitting Service (NFS), you then don’t must file your earnings tax.

As an alternative, your tax invoice shall be auto-computed based mostly on information submitted by your employer and your earlier yr’s tax reduction claims. You’ll get your invoice from April 2021 and you may examine/edit it then.

Then again, for those who’re not chosen for NFS, you’ll have obtained a “pleasant” letter or SMS from IRAS saying you could file your taxes this yr.

Chances are you’ll be requested to file your taxes even for those who earned lower than $22,000. In that case, you possibly can simply declare your earnings and e-file your tax return, however you gained’t be liable to pay earnings tax.

Didn’t obtain something? Then play protected and file your earnings tax anyway. Right here’s the best way to do it:

Step 1. Log into IRAS Tax Portal

To be able to file your taxes, you’ll must log into the IRAS Tax Portal utilizing your SingPass.

2FA log-in is now required, so after coming into your password you’ll need to enter a passcode despatched to your cell phone by way of SMS.

Alternatively, obtain the SingPass Cell app to log in by scanning a QR code. That is quicker than making an attempt to recall your password (those that’ve misplaced their passwords will know the way maddening the password reset course of is).

FYI, the previous SingPass OneKey Token — just like an web banking dongle — shall be phased out from 1 Apr 2021.

Step 2. Examine your whole earnings for YA2021

As soon as logged into the system, go to “People” > “Submitting Issues” and “File Revenue Tax Return”.

Right here, you’ll be capable to examine your whole earnings for YA2021 for those who’re a salaried worker. This could already be displayed based mostly in your CPF contributions.

In case you are partially or absolutely self-employed, you’ll need to manually enter your earnings from self-employment. IRAS has a information for the self-employed right here.

Step 3. Declare any extra earnings

You might be technically purported to declare any earnings that you’ve got been incomes outdoors of your job. This consists of:

• Commerce or enterprise earnings earned (together with earnings in digital currencies)
• Revenue obtained from Authorities Grants like Jobs Help Scheme, COVID-19-related payouts, Particular Employment Credit score or Wage Credit score Payouts
• Hire from property
• Dividends, good points and curiosity from sure sorts of investments (shares of most firms and REITs resident in Singapore are exempt)
• Payouts from annuities
• Alimony and upkeep funds
• Property or belief earnings

Step 4. Examine tax reliefs & deductions

Within the subsequent part, you possibly can attempt to scale back the quantity of tax payable via tax reliefs and deductions. These embody:

• Course Charges Reduction – For programs, seminars or conferences resulting in an instructional, skilled or vocational qualification, or which can be related to your present job or enterprise
• CPF Money Prime Up Reduction – For voluntary CPF top-ups for your self or your loved ones members (Singaporeans and PRs solely)
• CPF Reduction – Staff and self-employed who’ve made obligatory and/or voluntary OA/RA/SA/Medisave contributions
• Earned Revenue Reduction – Anybody who earns taxable earnings from employment, pension or commerce/enterprise/skilled/vocational actions
• Handicapped Brother/Sister Reduction – For supporting a bodily or mentally handicapped sibling or sibling-in-law in Singapore
• Life Insurance coverage Reduction – For these paying for their very own life insurance coverage premiums and who made lower than $5,000 in whole CPF contributions
• NSman (Self) Reduction – For operationally-ready NS males who’ve accomplished their full-time NS
• Guardian/HandicappedParent Reduction – For these supporting dad and mom, grandparents, parents-in-law and grandparents-in-law.
• Supplementary Retirement Scheme (SRS) Reduction – For individuals who are saving by way of the voluntary SRS Scheme.

When you enter the mandatory particulars, the system will robotically calculate the quantity of tax reduction you might be entitled to.The tax reduction quantity shall be subtracted out of your whole taxable earnings, and the max. tax reduction is $80,000.

For the reason that above tax reliefs are for the earlier yr, by now it could be too late to qualify for them. Nevertheless, you possibly can try the next information for the following tax season (i.e. your recreation plan this yr).

Learn extra: 10 Methods to Scale back Your Private Revenue Tax in Singapore for YA2021

Step 5. File away!

When you’ve crammed within the above particulars, examine that the tax return is correct, submit the net type, and also you’re accomplished.

Tax submitting season is from 1 Mar 2021 to 18 Apr 2021. Be certain that to submit it by the 18 Apr 2021 deadline, or you would get slapped with penalties.

Step 6. Examine your Discover of Evaluation

A number of weeks after you file your taxes, you’ll obtain a Discover of Evaluation (NOA) i.e. your earnings tax invoice. The NOA signifies how a lot it’s a must to pay in taxes and the deadline.

This shall be despatched by publish to your own home. You may also entry a digital copy of your NOA by logging into the IRAS MyTax portal.

Examine that the NOA is appropriate. You probably have any issues, log in to IRAS myTaxPortal and choose “Object to Evaluation” inside 30 days of receiving your NOA. You’ll want to offer supporting proof, and IRAS will evaluation your objection.

See IRAS’ information on objecting to your NOA for additional particulars.

Step 7. Pay your earnings tax

The federal government needs to make it straightforward to present them cash, so there are lots of methods you possibly can pay your taxes:

• Web banking (invoice fee)
• Web banking (fund switch)
• GIRO
• PayNow QR
• DBS PayLah! Cell app
• Cellphone banking
• ATM (DBS/POSB or OCBC solely)
• AXS Station
• AXS e-station (web) or m-station (cellular)
• SAM kiosk
• SAM Internet / SAM Cell
• NETS (at publish workplace solely)
• Telegraphic switch (solely if you’re abroad and can’t use any of the opposite fee strategies)

Can you utilize a bank card to pay earnings tax?

Formally, you possibly can’t use your bank card to pay your earnings tax. Nevertheless, a number of banks do let you make fee not directly by way of tax fee services. You’ll must pay a processing price, however some really feel it’s value it for the miles or rewards factors.

Citibank’s PayAll service allows you to pay earnings tax together with your Citi bank card. You earn the bottom earn fee in your card — for instance, 1.2 miles per $1 on the Citi PremierMiles card. However you could pay a service price of round 2% (varies from buyer to buyer).

DBS has an Revenue Tax Fee Plan the place you possibly can earn 1.5 miles per $1 whereas splitting your earnings tax invoice over 12 months at 0% curiosity. Nevertheless, there’s a processing price of two.5%.

HSBC’s Tax Fee Programme means that you can pay your earnings tax invoice in a single fee or in month-to-month instalments. HSBC affords the bottom processing price of 0.7%; however, you solely earn 1 reward level per $1.

Due to the fee, utilizing your bank card to pay earnings tax most likely solely is smart when you have a really massive earnings tax invoice and don’t thoughts paying to earn some miles or factors.

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