Your Feedback - Our Response 2017

Application of Certificate of Residency for companies

In order to apply for a Certificate of Residency from IRAS, companies need to meet the residency test requirement of having their management and control exercised in Singapore during the particular Year of Assessment. Companies would like to know if the Year of Assessment is on financial year or calendar year basis.

Determining quantum of loss items to be transferred

To provide examples to illustrate how to determine the quantum of loss items to be transferred under the group relief system when the shareholding falls below 75% during the basis period.

We have provided a hyperlink to an existing FAQ with an illustration on how to determine the quantum of loss items to be transferred if the shareholding falls below 75% during the basis period.

Nature of gain from sale of virtual currencies

Given the increased interest in virtual currencies, companies would like to know how to determine whether a gain made from the sale of virtual currencies is revenue in nature or capital in nature.

The determination of the nature of gains made from the sale of virtual currencies is similar to the gain made from sale of investments, i.e. based on the Badges of Trade test.

We have included a new paragraph to clarify this and provided a hyperlink to the Badges of Trade webpage.

Document Identification Number

Qualifying conditions for filing Form C-S

Notification of business cessation

Computation of deductible medical expenses

To provide guidance on the computation of the cap on deductible medical expenses when ad-hoc contributions to employees' Medisave accounts were made.

Estimated Chargeable Income (ECI) waiver eligibility criteria

It was announced that the annual revenue threshold (one of the criteria for determining the eligibility for ECI waiver) would be increased from $1 million to $5 million in 2017. Companies were unsure of the effective date when the new revenue threshold would take effect.

Instructions to complete Form C

We have updated our website and FAQs in response to common enquiries and clarifications received on Form C filing matters.

Enhancing brochure content

Clearance Directives

We have updated the content of the Clearance Directives to be clearer and more concise so that employers understand what they need to do after receiving the directive more easily.

A summary section that highlights the key actions required was also added to the directive. This serves as a quick reference for employers on “what they need to do” and “easy ways to pay”.

Claiming of input tax on insurance expenses

More examples should be provided on the type of insurance expenses which businesses can claim GST input tax on. The website previously only cited public liability insurance as an example.

Claiming of input tax by businesses which no longer make taxable supplies

One of the conditions for claiming input tax is for the expenses incurred to be directly attributable to the making of taxable supplies.

We have included a new FAQ in our website to highlight that businesses which have stopped making taxable supplies cannot claim input tax on overhead expenses such as rental and utilities, since the condition is not met.

Businesses can claim GST input tax on mobile phone expenses incurred by employees if they are regarded as businesses expenses and reimbursed. For mobile phones used for both business and private purposes, businesses were previously required to determine the amount used for business calls in order to claim the input tax.

Enhancing stamp duty refund process

We have enhanced the online refund application* since Mar 2017 to populate key information and allow system processing based on taxpayers’ declaration. Supporting documents are not required for the online refund application but should be retained and submitted to IRAS upon request. Majority of taxpayers can now obtain a refund within 30 days instead of the previous 60 days from the date of application.

Stamp Duty Remission forms

To extend more remission forms to law firms who can e-Stamp for their clients

Additional Stamp Duty transactions

To allow taxpayers to pay additional Stamp Duty online and obtain the revised Stamp Certificate instantly

Electronic Property Tax notices

We are piloting the digitalisation of property tax bill for residential properties owned by individuals, before extending to other property owners and notice types.

Utilisation of Property Tax

Number of attachments for myTax Mail

We have enhanced myTax Mail since Sep 2017 to allow taxpayers to upload 5 attachments per email message at a time. This enhances the taxpayers’ experience when using our e-Service.

myTax Portal font size

A taxpayer filing withholding tax suggested that reduce the font size on myTax Portal so that printouts of the acknowledgment page/ consolidated statement would not run into several pages.

Businesses would like to be informed on the outcome of their application for GST registration through faster modes, in addition to the notification letter sent to their registered address.

We have begun sending SMS or email notifications since Apr 2017 to the directors or business owners once their GST registration is approved.

Businesses found it difficult to apply the different rules for claiming GST on expenses incurred prior to GST registration.