In my country, every year, I have to pay my income tax return (ITR) to the Bureau of Internal Revenues (BIR). This is the same with Singapore but with different terminologies.
What is the Government Body that Handles Tax in Singapore?
They call the government body that handles taxes in Singapore as Inland Revenue Authority in Singapore (IRAS).
May you be a local or a foreign worker individual taxpayer , or a small or big time business entity in Singapore, IRAS is your friend when it comes to taxes.
Singapore IRAS is very efficient in collecting taxes from an individual or a business entity. It is because all transactions are handled through internet banking or if not, the taxpayer can pay at payment kiosks such as SAM , AXS, Cash/NETS. Singapore Post, a postal company in Singapore also accepts payment for taxes.
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The other payment type is through GIRO, this will auto deduct the tax from your bank account. To avail this GIRO, you need to fill up the form that comes from IRAS.
There is no way to find an excuse on not paying the taxes.
First Step on Income Tax Return
The expertise on taxes is not in my field, but as a foreign worker in Singapore, I need to be knowledgeable on how and when to pay it.
Every year, during the month of March, IRAS sends a letter to my company, it's a Tax Filing Package. Since my company is a small business entity, they did not apply for a direct payment to IRAS in behalf on their employees.
That means I need to pay my tax through my online account to IRAS. I'll explain this topic later.
The letter is a request from IRAS to file my Income Tax Return for the given year. The company will then provide me a copy of my Assessable Income for the whole year, 2012.
There is an internet portal in IRAS, they call it the myTax Portal, wherein every tax transaction that you need to do with IRAS is through this site.
When I filed my Income Tax Return, I logged in through IRAS using my SingPass account. Inside the myTax Portal, I keyed in my income details and submitted it to them online.
After Filing the Income Tax, What's Next?
A month after, IRAS sent a letter direct to my home address. Inside the letter is the Notice of Assessment wherein the details of all assessable income and personal reliefs are computed in details.
At the bottom of the computation is the amount of the Tax Payable by that year. The tax should be paid within 30 days from the date of the notice. There will be penalties if not paid on time.
I paid my income tax through myTax Portal via my DBS/POSB bank account. Then I checked the status on my tax payments for the year 2012, it's already updated.
For this year 2013, I paid IRAS 1.25% based on my chargeable income for the year 2012. Yes, I can't believe what I saw on that percentage, this is Singapore. The tax is lower than my home country.
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