SINGAPORE – Fresh graduates who have just entered the workforce might find filing their income tax returns a daunting task that school lessons did not prepare them for.
The individual income tax season runs from March 1 to April 18 every year. The deadline for those filing a paper tax return is April 15, while those filing electronically have till April 18.
With the deadline fast approaching, The Straits Times spoke to the Inland Revenue Authority of Singapore (Iras) to find out what information individuals need to file on their income tax returns, which reliefs and deductions they might be eligible for, and some common mistakes to avoid.
Q: What is income tax, and how do I know if I need to file an income tax return?
A: For the Year of Assessment 2024 (YA2024), you will be taxed based on your income earned in the previous year between Jan 1, 2023, and Dec 31, 2023.
Generally, income earned in or derived from Singapore is subject to income tax, if it exceeds $22,000, or if your self-employment income had a net profit exceeding $6,000.
Income can come from sources such as employment, trade, business, profession and vocation, and from renting out your property.
For employees, your employment income, including your salary, bonus or commission, is taxable. Additional allowances such as those for transport or meals, or other benefits such as club memberships, are also taxable.
For the self-employed, your income earned from the buying and selling of goods, or from providing professional or personal services, is taxable.
Taxpayers fall under two categories – those on the no-filing service (NFS), and those required to file an income tax return.
If you received a letter, form or SMS informing you to file an income tax return, you must do so by April 18.
If you were informed that you are under the NFS, you do not need to file an income tax return. However, you will need to log in to myTax Portal to check that your automatically included income information and relief claims are correct.
Q: What kind of information do I need on hand to file my income tax return?
A: Ensure that you have these documents ready before logging into myTax Portal:
- Singpass account/Singpass foreign user account
- Form IR8A from your employer (if your employer is not participating in the Auto-Inclusion Scheme)
- particulars of your dependants, such as parents or children, for new relief claims
- details of rental income from your property and other income, if any
Under the Auto-Inclusion Scheme, employees’ income information will be automatically filled up in their tax returns by their employers.