06 Mar 2024
  • Over 100,000 Commission Agents to Benefit From Pre-filled Tax Returns 
  • Fixed Expense Deduction Ratio Extended to Delivery Workers

This year, the Inland Revenue Authority of Singapore (IRAS) has further simplified tax filing for self-employed persons (SEPs), in particular commission agents and delivery workers, through two key initiatives. Over 100,000 commission agents will enjoy pre-filled income information in their tax returns. This is made possible with the income information obtained from some 650 commission-paying organisations. IRAS will also expand the Fixed Expense Deduction Ratio (FEDR) to include delivery workers for the first time, a benefit previously limited to commission agents, private hire car and taxi drivers. The FEDR streamlines tax filing for eligible SEPs by enabling them to claim business expenses based on a prescribed percentage of their gross income, instead of claiming tax deductions based on the actual amount of allowable business expenses incurred.

Taxpayers, employees and self-employed who are required to file an Income Tax Return should do so at myTax Portal before 18 April 2024, to avoid penalties for late filing.

1.8 Million Taxpayers Benefit From No-Filing Service

Over 1.8 million taxpayers are eligible for the No-Filing Service (NFS). They will be notified accordingly and need not file an Income Tax Return this year. They are required to still verify the accuracy of their auto-included income information and to check their eligibility for any tax reliefs claimed. 180,000 taxpayers on the NFS will also benefit from the Direct Notice of Assessment (D-NOA) initiative. Taxpayers on D-NOA will not receive a notification from IRAS but will receive their tax bills directly from mid-March 2024, with their income information and tax reliefs automatically included. Taxpayers who wish to make changes to their income and/or tax relief details upon receiving their tax bills can file an amendment using the Object to Assessment digital service on myTax Portal within 30 days from the date of their tax bill.

Taxpayers who receive a filing notification are required to file their tax returns on myTax Portal by 18 April 2024.

Mandatory Income Submission for Commission-Paying Intermediaries

This year, nearly 700 identified commission-paying intermediaries have been issued a Notice to collect, retain and submit the identification and income information of their self-employed commission agents to IRAS by 1 March 2024. Of this, some 650 organisations responded by the due date. This marks the first year of the requirement, which will be progressively extended to more commission-paying intermediaries and other organisations.

The mandatory income submission streamlines the tax filing process for self-employed commission agents by automatically pre-filling their tax returns with their commission income information. This enhances the accuracy of their tax returns. Qualifying commission agents may also benefit from the automatic computation of business expenses based on the FEDR, enabling them to potentially qualify for NFS. Commission agents such as real estate agents, insurance agents or brokers, financial advisers, multi-level marketing agents and remisiers, can use the IRAS Commission-Paying Intermediary Search Facility to verify if their organisations are among the identified commission-paying intermediaries. They can also confirm whether these organisations have submitted their income information to IRAS for Year of Assessment (YA) 2024.

Identified commission-paying intermediaries who have not yet submitted the necessary information of their commission agents should do so promptly[1].

Fixed Expense Deduction Ratio for Delivery Workers

Qualifying self-employed delivery workers now have the option to claim tax deductions on business expenses based on a fixed proportion of their annual gross income from delivery services (including food and goods delivery), instead of claiming deductions based on the actual amount of allowable business expenses incurred. The FEDR will apply to income earned from 2023 onwards. To qualify, delivery workers must be self-employed individuals earning a total annual gross income of $50,000 or less from delivery services, and use the prescribed delivery mode(s). The FEDR claimable, depending on the delivery mode used, is outlined in the table below.

 

Prescribed delivery modesFEDR on annual gross income from delivery services
On foot, by public transportation, or by non-power-assisted bicycles20%
By motorised personal mobility devices (PMDs), power-assisted bicycles or motorcycles35%
By vans60%

 

For a self-employed delivery worker with multiple delivery modes, the respective FEDR should be applied to the corresponding income earned under each mode[2]. The FEDR must be applied consistently to either all delivery modes used or none at all[3].

The FEDR was first introduced to private hire car and taxi drivers in YA 2019. It was subsequently extended to self-employed commission agents with annual gross commission income of $50,000 or less in YA 2020.

Easier Tax Payments with GIRO or PayNow

Upon receiving their tax bills from late-April 2024, taxpayers should choose digital payment methods like GIRO and PayNow over cheques. This ensures safe and seamless transactions, and saves taxpayers from incurring additional costs. Taxpayers should ensure that their contact details and notification preferences on myTax Portal are up to date, to receive timely notifications when their tax bills are ready for viewing.

Need Assistance With Filing Your Taxes?

Taxpayers who need help with tax filing can contact IRAS through the following channels:

Taxpayers who need in-person assistance with tax filing or digital payment can also visit ServiceSG Centres and counters [4]. ServiceSG Centres operate daily from 9am to 6pm, while the ServiceSG counters at Community Clubs operate daily from 10am to 6pm, except for Public Holidays.

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

Inland Revenue Authority of Singapore


[1] Identified commission-paying intermediaries must submit their commission agents' income information to IRAS by 1 Mar 2024. Those who have not yet done so should act promptly to ensure their agents can benefit from pre-filled tax returns. 

[2] See Annex – Claiming FEDR for Multiple Delivery Modes (PDF,15KB) for an example of how the FEDR can be applied to multiple delivery modes.

[3] This means one cannot claim the FEDR against income earned from one delivery mode, and actual allowable business expenses against income from another delivery mode. If income is earned from multiple delivery modes and any of the delivery mode does not have an FEDR (e.g. car), actual allowable business expenses must be claimed for all delivery modes instead.

[4] There are extensive road works around Revenue House to facilitate the North-South Corridor construction. Taxpayers are encouraged to visit ServiceSG Centre Our Tampines Hub, ServiceSG Centre One Punggol, ServiceSG@Nee Soon Central Community Club, ServiceSG@The Frontier Community Club, ServiceSG@Kampong Chai Chee Community Club, ServiceSG@Keat Hong Community Club or ServiceSG@Bukit Canberra.