SINGAPORE: Over 2 million taxpayers (8 in 10 taxpayers) are set to enjoy having their tax returns pre-filled this year. This is made possible as the Inland Revenue Authority of Singapore (IRAS) extends the Auto-Inclusion Scheme (AIS) for Employment Income to more than 100,000 qualifying employers, who are to electronically submit the employment income information of their employees to IRAS by 1 March 2023. 1.7 million taxpayers will also be eligible for the No-Filing Service (NFS) this season. Taxpayers, including sole proprietors and partners, who are required to file an Income Tax return should do so at myTax Portal before 18 April 2023, to avoid increased penalties for late filing.
Increased Penalties for Late Filers
Non-Compliant Employers to Be Prosecuted
In the Tax Season last year, 9 in 10 qualifying employers on AIS had filed by the deadline of 1 March in 2022. Employers who failed to do so were subjected to penalties and/or prosecution. The penalties have been enhanced this year, with a maximum fine of $5,000, up from $1,000 previously. Key personnel of non-compliant businesses such as company directors or partners may also be subject to a fine of up to $10,000, and/or imprisonment for a term of up to 12 months.
Up to $5,000 Penalty for Individuals Who Do Not File Tax Returns by 18 April 2023
Most taxpayers file their taxes by 18 April — 19 in 20 taxpayers did so in 2022. Those who do not file on time are liable to a fine of up to $5,000.
Taxpayers are encouraged to file online from 1 March 2023 and avoid last-minute filing. IRAS will be sending taxpayers filing notifications (via SMS or letters) in late February/early March 2023. Those who do not receive these notifications may check their filing requirements via the filing checker on the IRAS website. Alternatively, they can log into myTax Portal to see if tax returns have been issued to them.
Update Your Contact Details to Be Notified When Your Tax Bill Is Ready
Most taxpayers will receive digital tax bills via myTax Portal this year. Taxpayers should ensure that their contact details and notification preferences in myTax Portal are up to date so that they can receive timely notifications when their tax bills are ready for viewing.