-  Tax Filing Simplified for the Self-Employed 
-  Digital Notices with New Look and Design

To enhance the tax filing experience, the Inland Revenue Authority of Singapore (IRAS) will be sending tax bills directly to selected taxpayers in place of filing notices this season. IRAS will also be rolling out new initiatives to simplify tax filing for the self-employed. Selected commission agents and private hire car/taxi drivers will get to enjoy No-Filing Service (NFS) for the first time, and more sole-proprietorships will experience easier filing with the increase in revenue threshold for 2-line statement from $100,000 to $200,000. Taxpayers can also expect a new look for their tax notices this year, with improved design for an easy read.

Receive Direct Tax Bills

The vast majority of taxpayers on NFS do not make any adjustments to their Income, Deductions and Reliefs Statement when they receive their NFS notice, before their tax bill. IRAS is thus introducing a Direct Notice of Assessment (D-NOA) initiative, which means taxpayers on the NFS scheme will get their tax bills directly when ready. This is made possible as more income information is automatically included, and tax reliefs can be pre-filled for taxpayers. Taxpayers can still object to the assessment if they want to make changes to their reported income and relief claims at that stage. About 100,000 taxpayers will benefit from the D-NOA initiative this year when they receive their tax bills directly from May 2021. More taxpayers who are on the NFS scheme will get to enjoy this new service initiative progressively over the next few years.

Tax Filing Simplified for the Self-Employed

NFS for Commission Agents and Private Hire Car/Taxi Drivers

This year, IRAS is extending NFS to the self-employed taxpayers for the first time. Eligible commission agents and private hire car/taxi drivers who have joined the Pre-filling of Income Scheme will benefit from it. Under the Pre-filling of Income Scheme, the self-employed taxpayers’ income information is pre-filled in their tax returns. The scheme will be extended to other groups of self-employed taxpayers progressively. Taxpayers eligible for NFS will receive an SMS notification from IRAS. They do not need to file a tax return, unless they wish to make any adjustments to their income details or relief claims. They will receive their tax bills from May 2021.

Increase in Revenue Threshold of 2-Line Statement for Sole-Proprietors

To ease tax filing for small businesses, the revenue threshold for reporting of 2-line statement i.e. Revenue and Adjusted Profit/Loss, will be increased from $100,000 to $200,000 from YA2021 for sole-proprietorships. Sole-proprietors will need to report their business income using the 4-line statement i.e. Revenue, Gross Profit/Loss, Allowable Business Expenses and Adjusted Profit/Loss, only when their revenue exceeds $200,000. Around 21,000 sole-proprietors are expected to benefit from this initiative this year.

Digital Notices with New Look and Design  

IRAS will be digitising most notices from May 2021, with paper notices minimised. Taxpayers can look forward to the redesigned notices shown in Annex A and enjoy instant access to their tax notices on-the-go via myTax Portal. The new notices will set out the simple steps that taxpayers need to take. The layout has also been enhanced for better user experience. In line with IRAS’ digital-first approach, approximately 720,000 taxpayers will be invited to receive their tax bills electronically this year, bringing the total number of taxpayers receiving electronic tax bills to over 2 million. Taxpayers are encouraged to ensure that their contact details are up-to-date and indicate their notification preferences (viz whether by SMS, email or post) via the new “Update Notice Preferences” digital service on myTax Portal.

Claiming Deductions on Work-from-Home Expenses

Taxpayers who have been working from home can claim the incremental running expenses on electricity and telecommunication charges incurred for work purposes as tax deductions, if these expenses are not reimbursed by their employers. Taxpayers can compare the bills before and after working from home, with the difference to be claimed as a deduction. If there is more than one taxpayer working from home, IRAS will accept an equal apportionment basis in computing the amount of shared expenses across all working individuals in the same household. Taxpayers will have to retain expense records for 5 years and provide IRAS with the relevant supporting documents upon request.

File Tax Returns by 18 April 2021

IRAS reminds all taxpayers, including sole-proprietors and partners, to file their Income Tax returns at myTax Portal from 1 March to 18 April 2021.

Individuals with overseas employment who were working remotely from Singapore in 2020 due to COVID-19-induced travel restrictions, and who do not have other income taxable in Singapore, will not need to file tax returns if they meet all relevant conditions in Annex B.

Need Assistance with Filing Your Taxes?

Contact IRAS digitally through the following channels:

• Ask Jamie, a virtual assistant on tax filing matters
• Call 1800 356 8300 or chat online (Mon – Fri, 8 a.m. to 5 p.m.)
• Send an email via myTax Portal

Alternatively, make an appointment with IRAS (at least 2 working days in advance). Taxpayers can also visit Our Tampines Hub’s Integrated Public Service Centre (OTH IPSC) and SG Digital Office at Geylang East Public Library for filing assistance daily, except for Public Holidays. OTH IPSC operates from 9 a.m. to 10 p.m., while SG Digital Office at Geylang East Public Library operates from 10.30 a.m. to 7 p.m.

For more information, please visit https://www.iras.gov.sg.

Inland Revenue Authority of Singapore

Factsheet - Income Tax Treatment of COVID-19-Related Payouts to Individuals (PDF, 35KB)

ANNEX A: Redesigned Individual Income Tax NOA

ANNEX A: Original Individual Income Tax NOA

ANNEX B