taxBytes@iras

Tax Season 2021 - File taxes early from now till 18 Apr

Tax filing season has begun! Avoid the last-minute rush or late filing penalties by filing your taxes early. From now until 18 Apr, log into myTaxPortal to file.

Tax Filing Made Easy For The Self-Employed

Pre-filling and Fixed Expense Deduction Ratio Initiatives for Self-Employed Individuals

Are you a self-employed individual such as a commission agent or private-hire car (PHC)/taxi driver? Have your commission agencies participated in pre-filling and have you opted-in to pre-fill your gross driving income if your PHC/taxi operators have participated in pre-filling? If so, you will be able to enjoy more convenience when filing your income tax return as gross income information has been pre-filled.  

Don’t forget that qualifying commission agents and PHC/taxi drivers can also choose to deduct a deemed amount of expenses based on a prescribed percentage of gross income earned.  

Want to find out more information? Click here.

No-Filing Service for Eligible Commission Agents and Taxi/Private-Hire Car Drivers  

Eligible commission agents and taxi/private-hire car drivers who have joined the Pre-Filling of Income Scheme will enjoy the benefits of the No-Filing Service (NFS) from 2021 onwards.

You will be informed via a SMS notification from IRAS that you need not file a tax return unless you wish to make any adjustments to your income details or relief claims. Your tax bill will be sent to you from May 2021.  

Other qualifying criteria for the NFS include:

• Earning a commission income of not more than $50,000 and/or deriving driving income as a private-hire car/taxi driver;
• Employment income, if any, has been submitted to IRAS by your employer under the Auto-Inclusion Scheme (AIS) for Employment Income.

Increase in Revenue Threshold of 2-Line Statement to $200,000 for Sole-Proprietorships  

Sole-proprietors will experience easier tax filing with the increase in revenue threshold for 2-line statement, i.e. Revenue and Adjusted Profit/Loss, from $100,000 to $200,000.  

Want to read more? Click here. 

Receiving Digital Tax Bills  

Did not receive a Notification Letter informing you that you that you have been selected to receive an electronic tax bill also known as a Notice of Assessment (NOA)? Fret not! You can opt in to receive digital notices by signing up here.

Tax obligations of online sellers and service providers  

If you are selling goods or providing services and content online, income derived from these online activities are taxable. You will need to file a tax return between 1 March and 18 April if your total annual net trade income exceeded $6,000 (or your total annual taxable income exceeded $22,000) last year. The income earned from your online activities should be reported under "Trade, Business, Profession or Vocation" in your individual income tax form.  

Find out more at go.gov.sg/tax-guide-online-sellers-service-providers.

Reminder to Pay Corporate Income Taxes  

Received your company’s Notice of Assessment (NOA)? Take note that companies must pay the tax stated in the Notice of Assessment (NOA) within one month from the date of the NOA.  

Enjoy hassle-free payment of your Corporate Income Tax when you sign up for GIRO by completing either the Master GIRO application form or the GIRO application form for Corporate Tax.  

Payment can also be made via internet banking bill payment, internet banking fund transfer, AXS or PayNow QR.

Filing of Estimated Chargeable Income (ECI) for Companies  

All companies must file the Estimated Chargeable Income (ECI) within three months from their financial year end.

However, your company does not need to file the ECI for that particular YA if it meets both of the following criteria:

1. Annual revenue is not more than $5 million for the financial year; and
2. ECI is NIL for the YA.

 Using the GST Registration Calculator

Do you need to register for GST? Use the GST Registration Calculator to find out now.