Tax season can be a stressful time for many, but for eligible taxpayers in Singapore, the No-Filing Service (NFS) helps simplify the process significantly. Over 1.9 million individual taxpayers are eligible for NFS in the Year of Assessment (YA) 2025, with close to 500,000 benefitting from the Direct Notice of Assessment (D-NOA) initiative. The D-NOA further streamlines the tax experience by providing taxpayers with their finalized tax bill earlier, starting from mid-March 2025.
For the first time, the D-NOA has also been extended to self-employed individuals, thanks to income information submitted by intermediaries such as commission-paying organizations and private hire car operators. This expansion aims to provide greater assurance and certainty to taxpayers regarding their tax liabilities.
As we approach tax season for 2025, it’s important to understand how the NFS works and what it means for eligible taxpayers.
What is the No-Filing Service (NFS)?
The No-Filing Service (NFS) is a service provided by the Inland Revenue Authority of Singapore (IRAS) that allows eligible individuals to skip the process of filing an income tax return for the year. If you qualify for the NFS, the IRAS will pre-populate your income tax return based on the information they have gathered from various sources. This can significantly reduce the hassle and time spent on tax filing, as you won’t need to manually submit your income details, deductions, and other relevant information.
Instead of filing your tax return, you will receive a Notice of Assessment (NOA), which is based on the information the IRAS already has on file. This includes your employment income, bank interest, and other income sources reported to IRAS. If all the information is accurate and complete, you don’t need to take any action.
Who is Eligible for the No-Filing Service?
The No-Filing Service is designed to simplify the tax filing process for certain taxpayers who meet specific criteria. To be eligible, you typically must meet the following conditions:
- Income Level: You must have income that is within a certain threshold. Generally, this applies to individuals with straightforward tax situations, such as salary earners or those with limited sources of income.
- Employment Income: If you are an employee, and your only source of income is salary (with no other complex sources such as freelance work or rental income), you are more likely to qualify for the NFS.
- No Claim for Deductions or Reliefs: The NFS is typically available to individuals who do not have additional claims for tax reliefs or deductions, such as medical expenses, children’s relief, or foreign tax credits. If you have such claims, you may still need to file your tax return.
- Accurate Information on File: The IRAS must have accurate and complete records of your income, and they must be confident in the data they’ve received. If you have reported income incorrectly in the past or have inconsistent information, you may not be eligible for the NFS.
How Does the No-Filing Service Work?
For taxpayers eligible for the NFS, the process is quite straightforward:
- Receive the Pre-Populated Tax Return: IRAS will automatically prepare your income tax return based on the information they already have. This will be available for you to view through your IRAS online account (myTax Portal).
- Review the Information: Even though you do not need to file a return, it’s essential to review the pre-populated details carefully. Make sure your income, tax reliefs, and deductions are correct. If everything looks good, you don’t need to take further action.
- Notice of Assessment: If the pre-populated information is accurate, you will receive a Notice of Assessment (NOA) directly from IRAS. This document will show your tax payable amount. If no changes are needed, you can simply pay the tax amount by the due date.
- Make Adjustments (If Needed): If there are any discrepancies or if you want to claim additional reliefs or deductions, you can notify IRAS via the myTax Portal. After any adjustments, IRAS will send you the updated Notice of Assessment.
Benefits of the No-Filing Service (NFS)
The NFS offers a range of advantages for eligible taxpayers, making tax season much easier to manage. Here’s a more detailed look at the key benefits:
1. Time-Saving
One of the biggest benefits of NFS is the amount of time it saves. Traditional tax filing requires taxpayers to gather documents, check their income statements, and manually enter tax reliefs and deductions. With NFS, this entire process is automated, allowing taxpayers to skip filing a tax return altogether. Since IRAS already has the necessary income details, taxpayers can avoid the hassle of paperwork and reduce the time spent on tax compliance.
2. Simplified Process
Filing taxes can be complex, especially for those unfamiliar with tax regulations. The NFS eliminates much of this complexity by handling tax computations automatically. IRAS gathers financial data directly from reliable sources such as employers and financial institutions, reducing the risk of human error and ensuring a seamless tax filing experience.
3. Pre-Populated Data for Accuracy
One of the major challenges of filing taxes is ensuring all data is accurate and up to date. The NFS resolves this issue by pulling income information directly from third-party sources such as:
- Employers – Salaries, bonuses, and CPF contributions are automatically reported to IRAS.
- Banks and Financial Institutions – Any taxable bank interest or dividends are pre-filled in the tax computation.
- Government Agencies – Government payouts, rebates, or reliefs are included as applicable.
This pre-population of data makes tax filing easier and minimizes errors or omissions that could result in additional tax assessments.
4. Convenience and Peace of Mind
For many taxpayers, tax season can be a source of stress, especially when they are unsure about the accuracy of their returns. The NFS eliminates this anxiety by streamlining the process. Taxpayers will receive a notification of their NFS status by March 2025 and are encouraged to verify the pre-filled information, especially for tax reliefs based on the previous year’s assessment. Any required changes should be updated via the myTax Portal to ensure accurate tax assessments and avoid potential tax adjustments.
What Should You Do If You’re Not Eligible for NFS?
Not everyone is eligible for the No-Filing Service. If you have additional income sources or claims that need to be reported, or if your income level or tax situation is more complex, you will need to file a tax return as usual. In this case, make sure to file your tax return by the designated deadline to avoid penalties for tax evasion in Singapore.
You can file your tax return through the IRAS online portal, where the process is fairly intuitive and user-friendly. If you’re unsure of your eligibility or how to file your taxes, it’s advisable to consult a tax professional or contact IRAS for further guidance.
Conclusion
The No-Filing Service (NFS) is a convenient and time-saving option for certain taxpayers in Singapore. It helps reduce the complexity of tax season by automating the filing process for individuals with simple tax situations. If you’re eligible, the NFS allows you to focus on other aspects of your life without worrying about filing a tax return. However, always review the information provided by IRAS to ensure its accuracy. If you’re not eligible, make sure to file your tax return on time to avoid any penalties.
For those who may still find the tax filing process overwhelming, consider seeking professional advice from corporate service providers that manage taxation to ensure that your taxes are filed correctly and efficiently. Understanding how the NFS works will give you peace of mind this tax season!
