Tax assessment process
What IRAS does
IRAS reviews your Form P1 and Statement of Accounts to determine your tax liability. IRAS may request additional information and adjust your tax computation based on the review.
When you receive your assessment
You will generally receive your Notice of Assessment (NOA) by 31 December of the same year you filed.
What you must do
Pay the taxes within 1 month from the date of the NOA, even if you object to the assessment.
If you disagree with your tax assessment
You may file an objection to have your assessment reviewed.
How to file an objection
- File within 30 days from the NOA date
- Write to IRAS stating clearly why you disagree with the tax assessment
- Pay the assessed tax within 1 month (required even when objecting).
After filing objection
- IRAS reviews your objection and may request for information
- You receive the outcome within 6 months of providing complete information
- For complex cases requiring more time, IRAS will inform you of the estimated review time
- If your objection is successful, excess tax paid will be refunded.
Tax audits
IRAS conducts regular audits to ensure tax submission accuracy. Being selected for an audit does not necessarily mean you made a mistake.
What to expect
IRAS will issue a letter to you requesting information, such as:
- Details about your operations
- Income and expense records
- Supporting documents (e.g. bank statements, invoices, receipts)
- Register of members.
IRAS may also contact your suppliers, members, or banks to verify transactions.
Your responsibilities during an audit
You must:
- Respond promptly to information requests
- Provide accurate information
- Be truthful and honest in all dealings with IRAS
- Cooperate fully with the audit process
What you need to prepare
Keep these documents readily available:
- Constitution documents
- Complete financial records
- Bank statements
- Invoices and receipts
- Member registration records
- Minutes of meetings
- Contracts and agreements.