Income Tax Season: Have You Filed Your Taxes Yet?
News & Updates | 28 Mar 2019
Get started on filing your income tax before 18 April 2019. We will cut to the chase and condense all the necessary information you need to follow before filing for your income taxes.
Do I need to pay taxes?
For first-timers or new expatriates, this may be a very common question. Here’s how to find your eligibility for tax filing. You are required to file taxes if you are:
- Singapore Citizen or Singapore Permanent Resident (SPR) who resides in Singapore.
- The foreigner who has stayed or worked in Singapore (excluding director of a company) for 183 days or more in the previous year. i.e. the year before the Year of Assessment (YA). With the conditions that you have income from:
- Employment (receiving salary or bonuses).
- Trade, Business, Profession or Vocation (receiving income within Singapore and overseas, inclusive of virtual currencies such as cryptocurrencies).
- Property or Investments.
- Other Sources (including annuities, royalties, winnings etc).
More information on the requirements for tax filing here.
What are my income tax rates?
Credits: Inland Revenue Authority of Singapore (IRAS)
As condensed above, there are 10 tiers to income tax rates. You will need to pay taxes based on the salary you make. Bear in mind that these tax rates will affect individuals with an annual income of over S$20,000 – this includes freelancers and self-employed individuals.
Some examples of non-taxable income include capital gains on sale of fixed assets as well as games on foreign exchanges on capital transactions.
How can I lower my taxes?
Tax reliefs and rebates are some considerations you can rely on, such as CPF cash top-up relief, handicapped family member or spouse relief, NSman (self/wife/parent) relief etc. Find more information on the types of rebates here.
Fortunately, all tax residents can enjoy 50% off rebate (capped at $200) on income taxes as announced by Finance Minister Heng Swee Keat during the annual Singapore Budget earlier this year. This $200 tax rebate will relieve a sliver of your income taxes.
Of course, here at PolicyPal, we want to bring the focus on Life Insurance Relief. You can claim this relief if you meet the following conditions:
- Your total mandatory employee CPF contribution, self-employed Medisave/Voluntary CPF contribution as well as a voluntary cash contribution to your Medisave account is 2018 was less than S$5,000.
- You paid your own insurance premiums in 2018 on your life insurance policy.
- The insurance company must have a physical office or branch in Singapore if your policies are taken on or after 10 August 1973.
Note that this excludes the premiums paid on accident or health policies that provide for the payment of policy monies on the death of the policyholder. If you meet the above conditions, go ahead and file your claim to enjoy this rebate, simply by logging in to myTax Portal with your SingPass or IRAS Unique Account (IUA). More information on filing your claim here.
How do I file my income tax?
There are 2 ways to go about it. We encourage you to go green and paperless using the e-Filing method. Especially so as the deadline for e-Filing is 18 April 2019, whereas the traditional paper method of filing has a deadline of 15 April 2019.
- IR8A form (from employers who are not in the Auto-Inclusion Scheme)
- Statement of Account (if you are self-employed, a sole-proprietor or a partner)
- Name(s), Birth Certificate no./ NRIC of your children for Child Relief Claims
- Name(s), NRIC of Parents/ Parents-in-laws for Parent/ Grandparent Caregiver Relief Claims
Need more help with the e-Filing procedure? Here’s the IRAS e-Services portal to help you. You may also reach out for more assistance at 1800-356-8300.
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