Details

Published: 06 April 2020

Tax Season 2020

Portal to e-File tax return:  https://mytax.iras.gov.sg/ESVWeb/default.aspx

Income Tax for Trusts -  Form T

Persons Required to Submit Form T

• Legal personal representative (administrator/executor) of an estate of a deceased; and
• Trustee of an estate held in trust,  private trust or settlement

Income to Declare in Form T

• Income earned one day after the date of death from assets left behind by a deceased person; or
• Income from assets held under a private trust/settlement

Income Tax for Clubs and Associations -  Form P1

Persons Required to Submit Form P1

• The president,
• Honorary treasurer,
• Secretary or
• Any other member of the management committee 

Submit to:

The Comptroller of Income Tax Compliance,
Clubs, Trust and Gaming Branch
55 Newton Road, Revenue House
Singapore 307987

Note: IRAS will not issue any reminders to the clubs or associations

Estimated Chargeable Income (ECI)

ECI is an estimate of the company's taxable income (after deducting tax-allowable expenses) for a Year of Assessment (YA).

All companies must file Estimated Chargeable Income (ECI) within three months from the end of their financial year except for companies that qualify for the administrative concession and those that are specifically not required to file.

Waiver to File ECI

GST Returns

GST-registered businesses are required to use CorpPass to e-File their GST returns through https://mytax.iras.gov.sg/ESVWeb/default.aspx

S45 Withholding Tax Forms

Payers are required to e-file and pay the withholding tax to IRAS by the 15th of the second month from the date of payment to the non-resident

Tax Clearances for Foreign Employee

When non-Singapore Citizen employee ceases employment in Singapore, goes on an overseas posting or plans to leave Singapore for more than three months

Employer must notify IRAS at least one month in advance

Employer shall withhold all monies due to the employee from the date aware of his impending cessation of employment or departure from Singapore

Applies to all work pass holders including Personalised Employment Pass (PEP) holders

Details

Published: 19 February 2020

Deputy Prime Minister and Finance Minister Heng Swee Keat delivered Singapore’s FY2020 Budget Statement on Tue 18 Feb 2020, focused on Advancing as One Singapore.

The Budget is presented against a backdrop of the on-going COVID-19 outbreak, as well as broader uncertainties and structural shifts in the global landscape.

In the Budget, DPM Heng presented plans on how we can, as one Singapore, grow our economy and transform our enterprises, care for and nurture Singaporeans at every stage of life, build and secure our nation, and work together with fellow Singaporeans to create a home we will always call our own.

In particular, DPM Heng announced a Stabilisation and Support package to help local workers and enterprises weather near-term economic uncertainties, a plan to enable Transformation and Growth in the longer-term, and a Care and Support Package for households. When the GST rate is raised, there will be an Assurance Package to cushion the increase.

Please click below for more info:

FY2020 Budget Statement

FY2020 Budget Booklet

FY2020 Budget Summary_PDF    FY2020 Budget Summary_JPG

FY2020 Advancing as One Singapore

FY2020 Analysis of Revenue and Expenditure

Revenue and Expenditure Estimates for FY2020-2021

Source: MOF, SingaporeBudget

Details

Published: 03 April 2020

Singapore Government has announced Resilience Budget on 26 March 2020

Helping employee stay employed

1. Enhance and extend the Jobs Support Scheme (JSS), to provide more impactful and sustained wage support
   
   • Raising the Government’s co-funding of wages for local employees from 8% to 25%
     
     • Firms in the food services sector will receive higher support, at 50% of wages
     • Firms in the aviation and tourism sectors, which are the most badly affected sectors, will be supported at 75% of wages
   • Raising the monthly qualifying wage ceiling from $3,600 to $4,600
   • Extending the Jobs Support Scheme for another two quarters, till the end of 2020, so employers will receive a total of three tranches of payouts, in May, July, and October this year
   • Employers do not need to apply for the JSS. The grant will be computed based on CPF contribution data. Employers eligible for the additional tiers of support will be informed closer to the date of the first payout.

Helping the self-employed

1. The enhancements to the Jobs Support Scheme and Wage Credit Scheme will support workers employed in enterprises
   • Including: include taxi and private hire car drivers, real estate agents, media and art freelancers, and sports coaches
2. Extend the Self-Employed Person Training Support Schemeto December 2020, and enhance the hourly training allowance from $7.50 to $10, with effect from 1 May 2020. The allowance is for self-employed persons to attend courses under the SkillsFuture Series, or select training programmes
   • The enhanced training allowance is on top of the already generous training subsidies, which cover up to 90% of fees
   • In addition, trainees will be able to tap on their SkillsFuture Credit to further offset the course fees
3. Eligible self-employed persons will receive $1,000 a month for nine months
   
   • The Ministry of Manpower will provide more details soon

Helping lower-income workers

1. For lower-income workers, including self-employed persons, government have been supplementing their incomes through the Workfare Income Supplement Scheme (WIS)
   •  In the Unity Budget, Singaporeans on Workfare in 2019 would receive a one-off Workfare Special Payment amounting to 20% of their 2019 payout, with a minimum payout of $100
   • In this Resilience Budget, Government will enhance theWorkfare Special Payment, and increase the payout received by this group of Workfare recipients to $3,000 each, in cash

Creating opportunities for jobseekers

1. Government will introduce the SGUnited Traineeshipsprogramme to provide our young people with opportunities to gain valuable work experience, while giving an added boost for employers to emerge stronger from this crisis
   • The Ministry of Manpower will announce more details soon

Supporting the unemployed

1. Government will set up a Temporary Relief Fundin the month of April, to provide families with immediate financial assistance
   • This will be available at Social Service Offices and Community Centres
2. Government will also introduce a COVID-19 Support Grantat Social Service Offices to help workers who become unemployed due to COVID-19
   
   • Low- and middle-income employees who lose their jobs can receive a grant of $800 per month for three months
   • Requirements
     
     • Singapore Citizens or Permanent Residents
     • Aged 16 years and above
     • iii. Presently unemployed due to retrenchment or contract termination as a result of the economic impact of the COVID-19 situation
     • Had a monthly household income of not more than $10,000 / per capita household income not more than $3,100 per month prior to unemployment
     • Lives in a property with an annual value of not more than $21,000
     • Not currently receiving ComCare Short-to-Medium Term Assistance (SMTA) or ComCare Interim Assistance
     • Employed as a full-time / part-time permanent / contract staff prior to unemployment
     • Recipients of the support grant must agree and undertake to actively participate in job search, or attend a training programme under Workforce Singapore or the Employment and Employability Institute
       
       • Internships and self-employment are not considered
   • The scheme will be open for application from May 2020 to September 2020
   • Individuals who are eligible may submit their application at their nearest SSO, or as otherwise advised based on the latest MOH advisories

Helping our households

1. Government will enhance the Care and Support Packageannounced in the Unity Budget
   • Government will triple the cash payoutfor all adult Singaporeans from the earlier announced range of $100 to $300, to a range of $300 to $900, depending on income
   • Government will triple the additional cash payout given to each Singaporean parent with at least one young Singaporean child, from $100 to $300
   • For lower-wage workers, the enhanced Workfare Special PaymentGovernment will provide $3,000 in cash this year for their household needs
   • To further help needy Singaporeans with their daily expenses, and in particular, the cost of food, Government will triple the Grocery Vouchersgiven to them this year from $100 to $300. Together with the $100 which will be given to them next year, needy Singaporeans will receive $400 in Grocery Vouchers over 2020 and 2021
   • Government will also provide the earlier-announced one-off PAssion Card top-up for Singaporeans aged 50 years and above in cash instead. This is to avoid the need to queue at top-up stations during this period
   • Those who own more than one property will receive $300, regardless of their income

* Refers to Singaporean parents with at least one Singaporean child aged 20 and below in 2020. Each eligible parent will receive the additional $300.

^ The $100 PAssion Card Top-up that was announced at Budget 2020 will be provided in cash instead.

• • Additional $200 of Grocery Vouchers in 2020 for:
    • All Singaporeans aged 21 and above
    • Who live in 1-room and 2-room HDB flats
    • Do not own more than one property
  • The Labour Movement is also doing its part to help our workers and self-employed persons
    
    • NTUC announced the $25 million NTUC Care Fund (COVID-19) to provide one-off relief of up to $300 to low- to middle-income union members
    • NTUC also announced a $4 million top-up to the Self-Employed Person Training Support Scheme, to give union members an additional training allowance of up to $1 per hour
  • Government will freezeall government fees and charges for one year, from 1 April 2020 to 31 March 2021. This will apply to all fees for government services
  • To help graduates who are worried about having to pay off their student loans while finding jobs in this economic climate, Government will suspend all loan repayment and interest chargesfor one year, from 1 June 2020 to 31 May 2021
    
    • This will apply to all graduates who have taken a government loan for their university and polytechnic studies
  • Government will also suspend all late payment charges on HDB mortgage arrears for three months
    
    • For those who are struggling with their mortgage payments during this difficult period
    • HDB will continue to exercise flexibility when providing assistance during this period, through existing measures such as deferring payment of loan instalments for six months.

Supporting Businesses

1. Government will grant an automatic deferment of income tax payments for companies and self-employed persons, for three months. No application is required
2. For companies, Government will defer income tax payments due in April, May, and June 2020. Instead, income tax payments will only be payable from July 2020
   • In other words, if you made money last year and need to pay tax this year, you will delay paying for 3 months
3. For self-employed persons, Government will defer income tax payments due in May, June, and July 2020
   
   • The payment cycle for personal income tax for the Year of Assessment (YA) 2020 generally starts in May 2020

Example:

All companies with CIT payments due in the months of April, May, and June 2020 will be granted an automatic three-month deferment of these payments.
The CIT payments deferred from April, May, and June 2020 will instead be collected in July, August, and September 2020 respectively
Example: Company A’s financial year-end is in December.
It e-Filed its Estimated Chargeable Income (ECI) for Year of Assessment (YA) 2020 on 15 January 2020.
The tax payable, based on the ECI filed, is $12,000.
Company A has a GIRO instalment arrangement with IRAS for the payment of CIT. Currently, given that Company A filed its ECI within one month from the end date of its financial year-end , it will enjoy 10 months of instalments, i.e. it will pay $1,200 of CIT per month over the period February 2020 to November 2020.
For this year, Company A will also enjoy the following benefits as announced in the Unity Budget on 18 February 2020:
a) Companies that are on GIRO and filed their ECI on time will automatically qualify for an additional two months of interest-free instalment. In this case, as Company A had filed its ECI within one month from its financial year-end, it will enjoy 12 (10 + 2) months of instalments, i.e. it may pay its CIT over the period from February 2020 to January 2021.
b) In addition, for YA2020, companies are granted a CIT rebate of 25% of the CIT payable, subject to a cap of $15,000. This CIT rebate reduces Company A’s tax payable for YA2020 to $9,000. As Company A is paying its CIT by instalment, IRAS will adjust the remaining instalment amounts for Company A from April 2020 onwards.

4. All Self-Employed Persons (SEPs) will be granted an automatic three-month deferment of their PIT payments due in the months of May, June, and July 2020. The PIT payments deferred from May, June, and July 2020 will instead be collected in August, September, and October 2020 respectively
   • SEPs are to file their personal income tax (PIT) returns for YA2020 by 18 April 2020.
5. Government will enhance the Property Tax Rebateannounced in the Unity Budget, by raising the amount and covering more types of properties
   
   • For 2020, qualifying commercial properties that have been more badly affected by the COVID-19 outbreak will pay no Property Tax
     • Including hotels, serviced apartments, tourist attractions, shops, and restaurants
   • Government will now grant a Property Tax Rebate of 30% for the year 2020 for businesses in other non-residential properties
     
     • Such as offices and industrial properties

6. To help alleviate costs for businesses located in Government-owned / managed non-residential facilities. The following tenants will qualify for rental waivers:
   • Stallholders of Hawker Centres and Markets
     • Stallholders who qualified for the one month’s worth of rental waiver announced in Budget 2020 will now get three months’ worth of rental waiver (i.e. two months more), with a minimum waiver of $200 per month
   • Commercial Tenants
     
     • Commercial tenants who qualified for the half a month’s worth of rental waiver announced in Budget 2020 will now get two months’ worth of rental waiver in total (i.e. one and a half months more)
       
       • Eligible tenants / lessees may include those providing
         
         • Commercial accommodation
         • Retail
         • F&B
         • Recreation
         • Entertainment
         • Healthcare
         • Other services
     • Other Non-Residential Tenants
       
       • Government agencies such as JTC, SLA, HDB, URA, BCA, NParks, and PA will provide half a month’s worth of rental waiver to eligible tenants of other non-residential premises who do not pay Property Tax.
         
         • Eligible tenants / lessees may include
           
           • Those in premises used for industrial or agricultural purpose, or as an office, a business or science park, or a petrol station
7. Government will further enhance financing schemes so that even the hardest-hit businesses can continue to have access to credit
   
   • Government will enhance the Enterprise Financing Scheme (EFS) – SME Working Capital Loan to alleviate SMEs’ cash flow concerns, and introduced theTemporary Bridging Loan Programme (TBLP) for enterprises in the tourism sector
     
     • Government will increase subsidies to businesses for loan insurance premiums under the Loan Insurance Scheme, from 50% to 80%
     • Government will also expand the Temporary Bridging Loan Programme to all sectors, and increase the maximum supported loan from $1 million to $5 million
     • iii. SMEs that require support beyond the TBLP can continue to tap on the EFS –SME Working Capital Loan. The maximum loan quantum for this will be further enhanced, from $600,000 to $1 million

Emerging Stronger

1. The Government will now match $1 for every $2 raised by Trade Associations and Chambers (TACs) or business groups for qualifying initiatives, doubling the earlier matching rate of $1 for every $4
2. Government will raise the maximum support levels for PSG and EDG to 80% and 90% respectively to spur transformation
3. The enhancements to these three schemes will last until December 2020

Economic Resilience

1. Government will extend the enhanced training support to the arts and culture and land transport sectors, starting from 1 April 2020
   • In Unity Budget, we raised course fee subsidies and absentee payroll to 90% for the aviation, tourism, food services, and retail trade sectors, to last until June 2020
2. Government will extend the 90% absentee payroll rates to all employers, to provide additional cash flow relief when they send their workers for training, from 1 May 2020
3. The duration of the enhancements will also be extended, to cover eligible courses starting before 1 January 2021

Details

Published: 19 October 2018

The following legislative changes to the Companies Act take effect on 31 Aug 2018 for companies with Financial Year End (FYE) ending on or after 31 Aug 2018:

• Alignment of timelines for holding AGM and filing Annual Return with the FYE of companies
• Exemption for private companies from holding AGMs subject to specified safeguards

Please click HERE for more information.

Commencement Notification & Subsidiary Legislation

Companies (Amendment) Act 2017 (Commencement) Notification 2018 and related Subsidiary Legislation can be accessed HERE.

Source: ACRA

Details

Published: 13 September 2017

IRAS would like to alert the public that a scam email titled "Inland Revenue Authority of Singapore-Refund-Online-Confirmation" has been circulating. The email carries a message that the recipients are eligible to receive a tax refund and that they are to click on the link provided in the email to download and fill out the tax refund form.

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