Filing your personal income tax accurately is a statutory obligation in Singapore and a crucial step toward maintaining financial integrity and peace of mind. The Inland Revenue Authority of Singapore (IRAS) enforces strict compliance to ensure fairness across taxpayers.
Mistakes, whether unintentional or deliberate, can lead to severe repercussions. Below, we explore why accurate tax filing matters, how you can file personal income tax correctly, the consequences of errors, and how you can stay compliant.
Why is it Important to File Personal Income Tax in Singapore Correctly?
Avoid Penalties and Fines
Errors or omissions, whether due to oversight or negligence, can attract penalties under Singapore’s tax laws. Misreporting income or expenses could lead to fines and late payment fees. Filing accurately allows you to safeguard your finances against such avoidable losses.
Build Trust With Authorities
Maintaining a clean tax record demonstrates compliance and builds confidence with IRAS. This can ease your interactions with tax authorities and minimise the likelihood of audits or investigations.
Ease of Financial Planning
Proper tax filing means an accurate understanding of your financial obligations. This clarity is essential for personal budgeting, savings, or investments, and gives you confidence in your financial decisions.
Eligibility for Reliefs and Benefits
Singapore provides a range of tax reliefs and rebates for eligible individuals, including Working Mother’s Child Relief (WMCR) or CPF contributions. Filing correctly ensures you can claim these benefits and reduce your tax liability within legal limits.
Steps to e-File Personal Income Tax Correctly
Step 1: Obtain a Singpass or Singpass Foreign User Account (SFA)
Singpass is a digital ID used to access government e-services in Singapore. Eligible individuals can apply for Singpass online and receive the One-Time Password pin mailer within 3 to 10 working days. 2-Step Verification (2FA) is required when using Singpass.
Individuals ineligible for Singpass can apply for a SFA online.
Step 2: Prepare Documents Needed
Ensure that you have these documents ready before you log in to the IRAS myTax Portal:
- Singpass/SFA
- Form IR8A if your employer is not part of the Auto-Inclusion Scheme
- Particulars of your dependants, such as your child or parent, for new relief claims
- Details of property rental income and other income, if any
- Business registration number or partnership tax reference number for self-employed and partners only
Step 3: Log in to myTax Portal
Use your Singpass or SFA to log in to myTax Portal and file your income tax return. The electronic tax form will take about 5 to 10 minutes to finish. Remember to clear your cache before filing.
If you leave your session idle for over 20 minutes, you must log in to the portal again.
Step 4: Verify Pre-Filled Income Sources and Personal Reliefs in the Income Tax Return
In your income tax return, IRAS will pre-fill these information:
- Information on income, deductions, and reliefs provided by the relevant organisations to IRAS. Examples are employment income from employers taking part in the Auto-Inclusion Scheme (AIS), donations, and even NSman Relief
- Rental income based on your declaration in the previous year’s income tax return or e-stamped tenancy records
- Reliefs provided to you in the previous year, such as qualifying child relief (QCR)
You are responsible for verifying that this pre-filled information is accurate and complete. If there is any discrepancy, you must check with the relevant organisations that have provided the information to IRAS. The organisation will resubmit the information to IRAS if there are errors in the original submission and it will be included in your tax assessment.
Step 5: Declare Other Income Sources
If you have obtained other income sources that are not pre-filled, such as rental income, you must declare the income in your income tax return. Remember to click on the update button after making the declaration.
If your employer is taking part in the AIS but details are not shown in the income tax return, you must tick only the applicable boxes.
Step 6: Update Existing Tax Reliefs
Key in your deductions or reliefs in the boxes provided or the relevant hyperlinks to:
- Change or amend the amount of reliefs shared with other claimants
- Remove pre-filled reliefs that you no longer qualify for
- Make new claims for deductions or reliefs
Step 7: View Consolidated Statement
A consolidated statement will be displayed and fields that are manually updated will be shown as such. Check the declaration box and choose the submit button to go ahead with your tax return submission.
Step 8: Get an Acknowledgment Receipt
After successful e-filing, you will receive an acknowledgment page that you are advised to save a copy of or print for future reference.
Re-Filing Before Receiving Your Notice of Assessment (NOA)
You can only re-file once before the 18 April deadline. When you re-file, you must include all your income details, except information provided by employers under the AIS and other relevant organisations. After successful re-filing, your new submission will override the previous submission.
If you are not able to re-file by 18 April, you must file an amendment after receiving your tax bill for the current Year of Assessment (YA). You can do so on myTax Portal within 30 days from the date of your tax bill.
Related Read: 14 Strategies to Reduce your Personal Income Tax
What Are the Consequences of Filing Tax Incorrectly?
Failing to file personal income tax correctly can lead to significant consequences, including financial, legal, and reputational risks. Below are some potential downsides:
Financial Penalties
Late or incorrect submissions can result in financial penalties, including late payment interest and fines for inaccurate declarations. Repeated non-compliance could escalate these consequences.
Legal Repercussions
Serious tax violations, such as tax evasion or willful misrepresentation, may lead to criminal charges, including imprisonment. Singapore’s tax system is designed to ensure accountability, making evasion a risky endeavour.
Reputation Damage
Non-compliance can harm your reputation, particularly for professionals and entrepreneurs. A tarnished financial record might affect your ability to secure loans, approvals, or even professional opportunities.
Practical Tips for Accurate Tax Filing
Ensuring that your taxes are filed accurately is a vital part of staying compliant. Here are a few tips to guide you:
Understand Your Tax Obligations
Familiarise yourself with Singapore’s tax regulations to determine if you are required to file an income tax return. IRAS sends notifications to eligible taxpayers, but it is good practice to confirm your obligations.
Track and Organise Your Documents
Maintain detailed records of your annual income, employment benefits, rental income, and any business earnings. Ensure all supporting documents like payslips, bank statements, and expense receipts are organised and readily accessible.
Check Eligibility for Reliefs and Deductions
Explore legal tax reliefs, rebates, or deductions that apply to your situation, such as CPF contributions, personal income reliefs, or parent caregiving rebates. This can help lower your taxable amount while maintaining compliance.
Note that for all tax resident individuals in Singapore for YA 2025, the government has provided a personal income tax rebate of 60% of tax payable. It is capped at S$200 per taxpayer.
Seek Professional Assistance
If your tax situation is complex, such as managing income from multiple sources or overseas earnings, consider hiring a tax professional such as InCorp’s tax team. A qualified expert can guide you in reporting accurately and avoiding costly mistakes.
File Early
Avoid rushing to meet deadlines. Filing early gives you time to identify and correct any errors and ensures you avoid last-minute issues.
Related Read: Singapore Personal Income Tax Filing: Tips to Stay Compliant
File Your Personal Income Tax With Ease
Filing your personal income tax in Singapore accurately and on time is a legal obligation and a vital step toward financial accountability and peace of mind. Compliance helps you avoid penalties and audits while allowing you to take advantage of eligible tax reliefs and deductions, contributing positively to your financial well-being.
Navigating tax regulations can sometimes be complex, but you do not have to do it alone. If you are uncertain or require guidance, consider consulting a professional tax advisor to ensure accuracy and maximise your benefits. Our team is here to go the extra mile for you. Contact us today to find out more!
FAQs about Singapore a Shelter Against Global Trade
How much is the personal income tax rate in Singapore?
- The personal income tax rate in Singapore ranges from 0 to 24% depending on your tax residency and taxable income.
What is the personal income tax due date in Singapore?
- The filing deadline is 18 April of every year. If you need more time, you may request for an extension of up to 14 days.
Where can I find a personal income tax calculator in Singapore?
- You can use our free calculator and check with our friendly tax experts for more help!
Let us help you file your personal income tax with ease!
About the Author
