Filing income tax can become a nightmare for certain individuals, and that is why we offer professional tax filing services where we will do the hard work for you. But before going there, let’s give you an idea of Singapore’s income tax rules and regulations.
In Singapore, the majority of people who are employed contribute to the development of the country by paying taxes. The tax filing doesn’t have to be difficult, but it occasionally may be. To make filing your taxes easier, we, one of the most trusted tax filing services in Singapore, are here with some Q&As.
If you are working in Singapore, chances are you have to pay tax to the government. Like most countries, tax filing in Singapore requires some procedures before you can fill it. Here are the basic steps you need to follow in order to pay tax in Singapore. In Singapore, a progressive personal income tax rate is followed. It starts at 0% and reaches a maximum of 21.9% for employment above $300,000. Thankfully, in Singapore, there is no capital gain or inheritance tax. This essential guide will help you in filing your tax return in Singapore.
Who Is Obligated to Pay Income Tax in Singapore?
Unless explicitly exempted under the Money Tax Act or by an Administrative Concession, all people who earn, derive, or receive income in Singapore must pay income tax each year, according to IRAS.
In general, the following situations will result in you as a person having to pay tax during any given Year of Assessment (YA):
- Your revenue is derived or received in Singapore.
- Income may come from full-time employment, working alone or as a freelancer, among other things, or from investments in Singapore.
- You are employed by Singapore but are working outside of Singapore.
- You have a yearly gross income of at least SGD 22K; or
- Unless temporarily absent, you are a Singaporean citizen (SC) or permanent resident (SPR) who dwells in Singapore.
- You are a foreign national who resided or worked in Singapore for 183 days or longer in the year before the YA (excluding service as a director of a firm).
Additionally, you may be required to file if:
- Your annual net business income exceeds $6,000; OR
- Your yearly income exceeded $22,000 last year, even if IRAS does not send you any notification.
Being aware of these criteria is crucial when considering professional tax and accounting services, especially if your personal finances are complex.
What Is and Isn’t Taxable?
Income may or may not be taxed. Income that is subject to taxation is referred to as taxable income. The taxing procedure does not need consideration of non-taxable income.
Taxable Earnings:
- Employment earnings
- Payment bonus
- Fee for directors
- Income from self-employment
- Rental earnings
Non-Taxable Earnings:
- Windfalls, such as lottery prizes
- Gains from investments in equities and real estate
- Pensions
- Payouts for CPF Life
How Much Income Tax Must I Pay?
The main principle behind income tax is one’s income band. The personal income tax rates in Singapore are graduated for taxpayers who are residents. This implies that the highest income tax rate is presently 22% and that the more your income, the higher your tax.
Taxpayers might also anticipate tax reductions. Tax reliefs serve to lower the amount of taxes you must pay and are frequently the result of government programmes or policies.
Common Tax Reliefs or Deductions in Singapore Include:
- Parental Support
- Children’s Aid
- Relief for NSman
- School Fee Relief
- Relief from Life Insurance
- Relief for the Central Provident Fund (CPF)
- Relief from the Supplementary Retirement Scheme (SRS)
- Donation deduction
Please be aware that there is a cap on the amount of tax relief you may get; in Singapore, the cap for personal income tax relief is presently set at SGD 80K.
Documents Required for Tax Filing
It’s a straightforward procedure. You can pay using the myTax Portal or by paper filing. Many people prefer assistance from tax filing services in Singapore to avoid errors.
If you are an individual taxpayer:
Required:
- Form B1 2021
You will receive:
- Appendices 1 and 2
- Return envelope
If you are a self-employed taxpayer:
Required:
- Form B 2021
You will receive:
- Appendices 1 and 2
- Return envelope
If you are a non-residential taxpayer:
Required:
- Form M 2021
You will receive:
- Appendix
- Return envelope
When Must I File My Income Tax Return?
Tax returns can be electronically filed through the IRAS website from 1 March through 18 April each year. For instance, in 2022, you would file taxes for income earned in 2021.
You must deliver your finished tax form to IRAS by 15 April if you prefer paper filing.
Case A: You receive an SMS, letter, or tax form from IRAS
- File via myTax Portal between 1 March and 18 April.
- AIS-participating employers provide pre-filled information.
- Self-employed individuals may also get pre-filled data.
- Still ensure all data is completed correctly before submitting.
Case B: You are under No-Filing Service (NFS)
- No filing is needed unless you want to amend income or relief claims.
- Expect a tax bill around the end of April.
Case C: You receive no notification
You must file if:
- Annual net business income exceeds $6,000, OR
- Total yearly income exceeded $22,000
This is where reliable tax filing services can help ensure compliance.
Step-by-Step Guide for Filing Income Tax
There are two methods for submitting taxes: electronically and on paper. Most taxpayers use electronic filing due to its simplicity.
STEP 1: Gather the Required Materials
Have the following ready:
- IRAS Unique Account / SingPass (IUA)
- Form IR8A (if employer is not in AIS)
- Dependant information for relief claims
- Rental or additional income details
- Tax reference number for business/partnerships
STEP 2: Access the myTax Portal
- Log in using SingPass or IUA.
- Click Individuals > File Income Tax Return.
STEP 3: Enter or Confirm Your Information
- Input income, deductions, and reliefs.
- AIS users only need to verify pre-filled details.
STEP 4: Update Tax Relief Measures
- Add new reliefs.
- Remove ones you no longer qualify for.
STEP 5: Declare Additional Income
- Include revenue such as rental income.
STEP 6: Obtain Confirmation of Receipt
- An acknowledgement page appears after submission—save or print it.
For individuals unable to file online, IRAS sends paper returns between February and March.
Common Mistakes to Avoid When Filing Taxes
Avoid these common errors:
- Misreporting income
- Claiming inappropriate deductions
- Incorrect CPF contribution claims (self-employed)
- Submitting false documents
- Forgetting to click Submit on the myTax Portal
What Happens If I Don’t File My Taxes on Time?
Late or non-filing leads to a composition fee and possibly a court hearing. Appeals can be made through the myTax Portal. Always file early or request an extension if needed.
Filing taxes may feel complex, but with familiarity—or expert support from tax and accounting services—it becomes much simpler.
Who Are We?
Wzwu is a dedicated team of company secretarial professionals offering high-quality tax and accounting services. Our team has a business-oriented approach and extensive experience across all sectors. We provide efficient solutions for corporate-related issues and ensure your company thrives by using advanced technology to reduce administrative burdens.
We specialise in tax filing services in Singapore and understand the ins and outs of compliance, accounting, and corporate regulatory matters. Contact us now to learn more about taxes and how to file them. We also offer company secretarial services and deep insights into the business industry.
