7 in 10 taxpayers not required to file income tax returns in 2022, more to receive direct bills: Iras
Around seven in 10 income taxpayers - more than 1.6 million individuals in Singapore - will not be required to file a tax return this year, as more initiatives are rolled out to simplify tax filing.
These taxpayers who are eligible for the No-Filing Service (NFS) are required to verify the accuracy of their auto-included income information and check their eligibility for tax reliefs claimed.
Around 120,000 taxpayers out of the 1.6 million on the NFS will get their tax bills directly, under the Direct Notice of Assessment initiative which was introduced last year, the Inland Revenue Authority of Singapore (Iras) said in a release on Monday (Feb 28).
This means that they will get their tax bills directly, with their income information automatically included and tax reliefs pre-filed.
Taxpayers can still make changes to their income or relief details upon receiving their bills by filing an amendment on Iras' online portal within 30 days from the date of their tax bill.
Other initiatives to simplify tax filing include new tools to help taxpayers check on their filing requirements and tax reliefs on the Iras website.
"Employees and directors whose employers are not on the Auto-Inclusion Scheme are reminded to report their employment income as their income are not automatically included," Iras said.
Partnerships will also now benefit from simplified tax filing using just a two-line statement - revenue and adjusted profit/loss - for a revenue of up to $200,000 in year of assessment 2022, which refers to income earned from Jan 1, 2021 to Dec 31, 2021.
This compares to the previous requirement to report their income using a four-line statement covering revenue, gross profit or loss, allowable business expenses and adjusted profit or loss. The four-line statement will continue to be used for sole proprietors and partners with revenues exceeding $200,000.
An estimated 17,000 partners are expected to benefit from easier filing processes and simplified record-keeping requirements in 2022, in addition to 21,000 sole proproprietors.
Taxpayers, including sole proprietors and partners, who are required to file an income tax return should do so on Iras' myTax portal between March 1 and April 18.
More than 90 per cent of taxpayers will be receiving digital bills this year.
Iras is also introducing PayNow as a new tax refund mode from July 2022 for taxpayers who are not on the Giro service. Existing tax refund modes include Giro, direct crediting and telegraphic transfer.
This means that in the case of overpayments or incorrect payments, taxpayers will receive tax refunds into their bank accounts securely and promptly, the authority said.
Taxpayers who need assistance with filing their taxes can contact Iras digitally, such as via e-mail on Iras' myTax portal or through its online virtual assistant, or make an appointment to visit its service centres at least two working days in advance.
Those who have under-declared income or made incorrect expenses or relief claims in previous years should make a voluntary disclosure on Iras' online portal in a timely manner, Iras said.
"Penalties for voluntary disclosures may be reduced if qualifying conditions are met," it said.
The tax authority also urged taxpayers to be vigilant against phishing scams and to not be deceived by fake SMSes, e-mails and WhatsApp messages. More details on its scam and fraud advisory can be found here.
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