Extension of Tax Filing Deadlines by the Inland Revenue Authority of Singapore

The Inland Revenue Authority of Singapore (IRAS) announced on 4 April 2020 that it will be providing an automatic extension of deadlines for tax filing for both individuals and businesses. This extension arrives as part of its support for taxpayers in view of the latest measures introduced by the Singapore Government to manage the COVID-19 situation.

The following tax types have been granted an extension of their filing deadlines:

No. Tax Type Original Filing Deadline Extended Filing Deadline
1 Income Tax for individuals (including sole proprietors and partnerships) 18 April 2020 31 May 2020
2 Income Tax for Trusts, Clubs and Associations 15 April 2020 30 June 2020 (Updated)
3 Estimated Chargeable Income (ECI) for companies with Financial Year ending January 2020 30 April 2020 30 June 2020 (Updated)
4 ECI for companies with Financial Year ending February 2020 31 May 2020 30 June 2020 (Updated)
5 GST Returns for accounting period ending March 2020 30 April 2020 11 May 2020
6 S45 Withholding Tax Forms due in April 2020 15 April 2020 15 May 2020
7 Tax Clearances for foreign employees in April 2020 30 June 2020 (Updated)
8 Tax Clearances for foreign employees due in May 2020 30 June 2020 (Updated)

Source: IRAS

Support for Businesses – Singapore Resilience and Solidarity Budgets 2020

Various measures were introduced or enhanced in the Resilience and Solidarity Budgets announced by the Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, since 26 March 2020 to help businesses address cash flow, cost and credit issues. There are broad-based measures that are available to all businesses to overcome the immediate challenges posed by the COVID-19 outbreak, as well as measures that are specific to certain sectors which are most directly affected by COVID-19.

In this article, we examine some of the key broad-based and sector-specific measures announced in the Resilience and Solidarity Budgets.

Read Article

Enhanced Property Tax Rebate

In the Budget 2020 Statement on 18 February 2020, it was announced that property tax rebate will be granted to owners of qualifying non-residential properties to ease the cost pressure of certain industries which are more badly affected by the COVID-19 outbreak. As part of the Resilience Budget announced on 26 March 2020, the property tax rebate previously announced is now enhanced, by increasing the amount of rebate and covering more types of properties. With the enhancement, owners of qualifying properties will be granted rebates of up to 100% on their property tax payable for the period of 1 January 2020 to 31 December 2020.

The Government introduced new legislation on 7 April 2020. Under the new legislation, property owners are obliged to pass on to their tenants the full amount of property tax rebate received for each property tax account that is attributable to the tenanted property. Further details will be made known on the Inland Revenue Authority of Singapore’s (IRAS) website in mid-April 2020.

The table below shows the property tax rebate announced in Budget 2020 as well as the enhanced property tax rebate announced in the Resilience Budget.

  Property Tax Payable for Property Tax Rebate as Announced in Budget 2020

Enhanced Property Tax Rebate
A. Hotel room or function room of a hotel registered under the Hotels Act 30% 100%
B. Serviced apartment or serviced apartment function room
C. Premises of the following that are used or intended to be used for Meetings, Incentive Travel, Conventions and Exhibitions (MICE):

  • Suntec Singapore Convention and Exhibition Centre;
  • Singapore EXPO; and
  • Changi Exhibition Centre.
D. All the premises of the following:

  • Changi Airport;
  • Singapore Cruise Centre;
  • Marina Bay Cruise Centre Singapore; and
  • Tanah Merah Ferry Terminal.
15%
E. Premises that are used or intended to be used as:

  • Backpackers’ hostel, boarding house, guest house or students’ hostel that is not a hotel;
  • Hotel that is not a registered hotel;
  • Shop or warehouse retail building;
  • Restaurant;
  • Sports and recreation building;
  • Amusement centre;
  • Cinema or theatre;
  • Medical clinic, hospital, nursing home, hospice, place of rehabilitation or convalescent home;
  • Childcare centre or kindergarten;
  • School;
  • Driving school;
  • Purpose-built workers’ dormitory; or
  • Tourist attraction.
F. All the premises of the following:

  • Marina Bay Sands; and
  • Resorts World Sentosa.

The above rates in (A) – (E) do not apply to Marina Bay Sands and Resorts World Sentosa.

10% 60%
G. Other non-residential properties. Some examples are:

  • Premises used for an industrial or agricultural purpose
  • Offices
  • Business or science park
  • Petrol station
  • Warehouse
0% 30%
The above property Tax Rebate does not apply to any other premises or part of any premises used or intended to be used for any residential purpose or as a facility for the exclusive use of residents of residential premises.

No property tax rebate shall be given to vacant land or land under redevelopment.

IRAS will send out the rebate notices by 31 May 2020. Owners of qualifying properties can expect to receive their refunds by 30 June 2020.

 

Deferment of Income Tax Payments

The Deputy Prime Minister and Minister for Finance, Mr Heng Swee Keat, unveiled additional support measures to ease cash flow for taxpayers in the Resilience Budget announced on 26 March 2020. One of the measures is the automatic deferment of income tax payments as explained below.

Businesses
For companies, the Corporate Income Tax (CIT) payments that are due in the months of April, May, and June 2020 will be deferred for three months and collected in July, August, and September 2020 respectively. It is crucial to note that the automatic deferment of CIT payments will complement the automatic extension of additional two months interest-free instalments on ECI as announced in the Unity Budget 2020 on 18 February 2020. An example to illustrate the deferment of CIT payments is provided below:

Example

Company A’s financial year-end is in December and had e-filed its Estimated Chargeable Income (ECI) for the Year of Assessment (YA) 2020 on 15 January 2020 with a CIT payable of S$9,000. Accordingly, the number of instalment plans availed to Company A for its ECI is twelve and the revised instalment plan for Company A’s ECI tax payable for YA 2020 is as follows:

Deferment of Income Tax Payments 1

Note: The example illustrated above has taken into account the two relief measures (i.e. automatic extension of interest-free instalment of 2 months for payment of CIT on ECI and CIT rebate of 25% of the CIT payable (capped at S$15,000) for YA 2020) as announced in the Unity Budget on 18 February 2020.

By examining the figures in the table above, it is evident that Company A’s CIT payable on its ECI is deferred for three months to ease the cash flow needs for April, May and June 2020 as a relief measure to help Company A tide through the challenges brought by the COVID-19 outbreak in these months.

Companies can expect to receive a letter from the IRAS by 15 April 2020 on the deferred CIT payments. Companies who are on the GIRO will be able to view their revised instalment plans at IRAS’ myTax Portal from 1 May 2020.

Self-Employed Persons (SEPs)

The tax filing deadline for SEPs to e-file their Personal Income Tax (PIT) returns via the IRAS tax portal for YA 2020 is by 18 April 2020. Accordingly, the PIT payments for SEPs that are due in the months of May, June, and July 2020 will be deferred for three months and collected in August, September, and October 2020 respectively. An example to illustrate the deferment of PIT payments for SEPs is provided below:

Example

SEP B files his PIT returns for YA2020 by 18 April 2020 with a PIT payable of S$1,200. SEP B has an existing GIRO instalment arrangement with the IRAS and his PIT is payable in 12 months of equal instalments. The revised instalment plan for SEP’s PIT payable for his YA 2020 tax assessment is as follows:

Deferment of Income Tax Payments 2

Individual Taxpayers (Employees)

Individual taxpayers can opt to defer their income tax payments due in May, June and July 2020 by signing up for the deferment option by 31 July 2020. The application can be made online here: https://form.gov.sg/5d5ce149c0a8230012d27118.

This deferment does not apply to non-Singapore citizen employees who have sought tax clearance and employees of foreign employers.

Once the request to defer the payment is approved, the new arrangement shall supersede any due date indicated on the Notice of Assessment.

If the taxpayer is paying his or her income tax by GIRO, there will be no GIRO deduction in May, June and July 2020. The income tax deduction will resume in August, September or October 2020 and the end-date of the instalment plan will be extended by 3 months.

For taxpayers settling their income tax liabilities in one lump sum payment, the payment will be deferred by three months.