Tax filing season is upon us in Singapore and it's important to make sure you're taking advantage of all the available allowances, reliefs, and deductions to minimize your tax burden. In this article, we'll go over some of the key things you need to know about using reliefs and deductions in your Singapore tax filing, as well as how to claim back previous years' reliefs if you missed any.
Reliefs are deductions that can be made from your taxable income. Some common reliefs in Singapore include the personal income tax relief, which is given to all taxpayers. Qualifying child relief is also common, which can be taken by one spouse (not both) who support their children up through university. Other common reliefs are the foreign domestic worker levy relief, which is allowed by female spouses only. Lastly, course fees relief, which is given to individuals who are taking courses to improve their skills or qualifications.
Deductions are expenses that can be deducted from your taxable income. Some common deductions in Singapore include the expenses related to earning your income, such as transport expenses, and the expenses related to your employment, such as the cost of uniforms or tools. These deductions come with specific conditions, so please ensure that you meet those conditions before claiming.
Filing Reliefs and Deductions
Singapore tax filing is completed online. For your convenience most employers will file through the auto inclusion scheme. If you are self-employed you will need to file your income yourself. Everyone should still login to their personal tax portal through the IRAS website to claim reliefs and deductions. Not all reliefs and deductions are automatic, so please ensure you file to claim.
Claiming Back Previous Years' Reliefs
If you missed claiming a relief in a previous year or multiple years, you may still be able to claim it and receive a refund. To do so, you will need to submit a request for an amendment to your tax assessment. This can be done online through the IRAS website or by submitting a paper form. You can claim back reliefs for up to four years from the current year of assessment.
The examples above are common reliefs and deductions, but there are more that apply in specific circumstances. Please talk with your advisor or IRAS to ensure you claim the right amounts for your specific tax circumstances. If you have any questions, please contact us here at Avrio Wealth.