Currently, IRAS allows tax agents bulk extension of time to file tax returns - for locals till 30 June and foreigners, till 31 July. For any extension beyond 31 May, tax agents are required to submit the Estimated Chargeable Income (ECI) of their clients.
IRAS has reviewed the bulk extension framework under which tax agents can request for extension of time for their individual clients to file their tax returns.
Under the new simplified bulk extension framework, there will be one common bulk extension date - 30 June for both locals and foreigners. With this change, tax agents need not provide the ECI of their clients. A common bulk extension date will be easier for tax agents to manage and taxpayers will only receive one assessment. ECI assessments will not be issued unless the tax returns are filed late, i.e. after the extended due date.
A phased - in approach will be adopted over a period of two years as follows:
Year of Assessment (YA)
|
Bulk Extension Due Date
(For both locals and foreigners)
|
2010
|
31 July 2010 (No ECI required)
|
2011 onwards
|
30 June 2011 (No ECI required)
|
To request this extension, tax agents will have to provide the list of their clients to IRAS at the beginning of each year. Tax agents are advised to adhere to the extended timeline strictly as penalties may be imposed if the tax returns are not received by the extended due date. We encourage tax agents to start planning their resource requirements early to meet the new bulk extension due date.
A separate update will be issued by December 2009.