Why Income Tax E-Filling is Essential for Individuals and Businesses
Still filling your taxes manually? It’s time to change. Income tax e filling is transforming the way Singaporeans manage their taxes. With the government’s push toward digitalization, e-filing has become the preferred and most efficient method. If you’re still using manual processes, you might be missing out on significant benefits.
Discover why e-filing is the smarter choice for individuals and businesses alike!
What is Income Tax E-Filing?
Income tax e-filing is a convenient and efficient method for submitting tax returns electronically via the Inland Revenue Authority of Singapore (IRAS) system. In Singapore, individuals must submit an income tax return under certain conditions: If their total annual income surpasses SGD 22,000, if they earn over SGD 6,000 in net profits from self-employment, or if they are non-residents generating income in the country. While the income tax e-filing system differs for businesses, they are still required to file corporate tax returns electronically through the IRAS Corporate Tax Filing system.
Regardless of your income level or your employer’s participation in the Auto-Inclusion Scheme (AIS), you are required to file an Income Tax Return if IRAS has sent you a letter, form, or SMS instructing you to do so. To file your Income Tax Return, please log into myTax Portal using your Singpass or Singpass Foreign user Account (SFA).
What are the Benefits of Income Tax E-Filing?
Singapore’s income tax e-filing system is designed to enhance efficiency, accuracy, and compliance for taxpayers. E-filing offers several key benefits, such as:
- Convenience and Time-Saving:
With income tax e-filing, taxpayers can submit their returns anytime, anywhere, as long as they have an internet connection. Moreover, the process is faster compared to traditional paper filing, and acknowledgments are received immediately upon successful submission. To e-file, simply log in to myTax Portal using Singpass or Singpass Foreign user Account (SFA) and follow the guided process.
- Accuracy and Reduced Errors:
Income tax e-filling systems often include built-in checks to minimize errors and ensure compliance with tax laws. These built-in validations reduce the risk of miscalculations or omissions, helping taxpayers stay compliant with IRAS regulations.
- Faster Processing and Refunds:
Compared to manual submissions, e-filing allows for quicker processing of tax returns. In cases where excess tax has been paid, refunds are facilitated more swiftly, ensuring that taxpayers receive their reimbursements in a timely manner.
- Avoid Penalties:
Timely submission of tax returns through e-filing helps taxpayers meet deadlines, thereby preventing penalties associated with late or missed filings. This ensures compliance with IRAS regulations and avoids unnecessary financial penalties.
What are the Steps in Submitting Income Tax E-Filing?
Submitting income tax e filling is easy. Steps to e-file your income tax return are as follows:
1. Get a Singpass or Singpass Foreign user Account (SFA)
If you’re not eligible for Singpass, you can apply for a SFA online. Singpass is a digital ID that grants access to all Government e-Services. Upon registration, you will receive a One-Time Password (OTP) mailer within 3 to 10 working days. For security, a 2-Step Verification (2FA) is required when using Singpass.
2. Prepare the Required Documents
Before logging into myTax Portal, make sure you have these necessary documents:
- Singpass/SFA.
- Form IR8A (if your employer is not participating in the Auto-Inclusion Scheme).
- Particulars of your dependants(e.g. child, parent) for new relief claims.
- Details of rental income from your property (e.g. gross rent, expense claims) and other income, if any.
- Business registration number/partnership tax reference number (for self-employed and partners only).
3. Log in to myTax Portal
Access myTax Portal with Singpass or SFA and select ‘Individuals’ > ‘File Income Tax Return.’ The process takes 5-10 minutes. Clear your cache before and after filing. Check system requirements, and note that inactive sessions expire after 20 minutes.
4. Verify Your Pre-Filled Income Sources and Personal Reliefs in the Income Tax Return
IRAS automatically fills in your tax return with income, deductions, and reliefs from relevant organizations, such as employment income (AIS), donations, and NSman Relief. Rental income is based on last year’s return or e-stamped tenancy records. Verify all pre-filled details for accuracy. If there are errors, contact the relevant organization to update IRAS. Proceed with e-filing by 18 April.
5. Declare Other Sources of Income
If you have additional income not pre-filled (e.g., rental income), you must declare it in your tax return. Click ‘+ADD NEW,’ enter the details, and select ‘UPDATE’ to save.
6. Update Existing Tax Relief
You can enter your deductions and reliefs in the designated fields or use the provided links to make necessary adjustments. This includes:
- Removing pre-filled reliefs that you no longer qualify for.
- Modifying the amount of shared reliefs if they are being claimed by another person.
- Adding new claims for eligible deductions or reliefs.
During the filing process, you will see a question:
“My spouse/child/parent/caregiver did not have an annual income of more than $8,000 in 2024.” If your dependant’s total income was less than $8,000, please select the “Yes” checkbox to ensure your claim is processed correctly.
7. View Consolidated Statement
Before submitting your tax return, you’ll see a Consolidated Statement summarizing your entries. Any changes you made will be marked “Updated.” Double-check your details, check the declaration box, and click “Submit” to complete the process.
8. Receive an Acknowledgment Receipt
After successfully submitting income tax e-filing, an acknowledgment page will appear. Save or print it for reference.
If you need to re-file before receiving your tax bill (Notice of Assessment), you can only do it once by 18 April. Make sure all income, expenses, donations, and relief claims are included, except for employer-submitted Auto-Inclusion Scheme (AIS) data. The latest submission will override the previous one.
If you miss the 18 April deadline, wait for your Tax Bill and submit changes via ‘Amend Tax Bill’ on myTax Portal within 30 days of its issue date.
What are Common Challenges in E-Filing and How to Overcome Them?
While it offers convenience, income tax e-filing also comes with several challenges. Here are the common issues faced during e-filing and ways to overcome it:
1. Technical Glitches
Income tax e-filing portals may experience crashes, slow loading time, or continuous buffering, making submission difficult. Errors like mismatched pre-filled data or delayed updates can also cause issues. To avoid this, you can file during non-peak hours, verify pre-filled data, and keep backups of submissions.
2. Errors in Data Entry
Mistakes in income, deductions, or relief claims may lead to penalties. Double-check entries before submission and use built-in error detection tools to ensure accuracy.
3. Authentication Problems
Delays or failures in receiving OTPs can prevent timely filing. Ensure your registered mobile number is up to date, retry after a short interval, or contact support if the issue persists.
4. Complex Tax Scenarios
Taxpayers with multiple income sources may face reporting challenges. Seeking professional advice or using tax software designed for diverse income streams can simplify the process.
5. Missed Deadlines
Last-minute technical issues can result in penalties. Start early to allow time for problem resolution and save drafts periodically to prevent data loss.
Why E-Filing is Crucial for Businesses?
For businesses, income tax e-filing is important because of several reasons:
- Time Efficiency
Income tax e-filing reduces the time needed to prepare and submit tax returns compared to traditional paper filing. With the convenience to file from anywhere, businesses can avoid delays caused by mailing. Tax agencies also process e-filed returns more quickly, often providing acknowledgments and refunds within 24–48 hours. - Improved Accuracy
With built-in error checks, income tax e-filing helps businesses avoid common mistakes such as miscalculations or missing entries. The system is able to highlight discrepancies and provides clear instructions for corrections, ensuring accurate tax reporting. - Cost Savings
By switching to income tax e-filing, businesses can reduce administrative costs. It also helps prevent late filing penalties by ensuring timely and accurate submissions. - Faster Refunds
Businesses that e-file their income tax returns receive refunds faster, especially when opting for direct deposit. The streamlined process eliminates unnecessary delays, ensuring quicker access to eligible tax refunds. - Convenience
With income tax e-filing, businesses can submit their tax returns anytime without being restricted by office hours or postal deadlines. The system also allows scheduling payments in advance.
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E-filing your income tax can be complicated, especially for businesses with complex financials. Let One Tax CM simplify the process for you. Our experts handle everything—from preparing your tax documents to ensuring accurate and timely submissions.
Save time, avoid errors, and stay compliant with ease. Contact One Tax CM today at +65 6708 9369 or visit www.onetaxcm.com to make income tax e-filing stress-free.
FAQ About Income Tax E-Filing
- What is the deadline for income tax e filling in Singapore?
The deadline for e-filing income tax returns in Singapore is April 18th. - How do I access the e-filing portal?
You can access the e-filing portal using a SingPass or SingPass Foreign User Account (SFA) on the IRAS myTax Portal. - What documents do I need for e-filing?
You need your SingPass/SFA, Form IR8A (if applicable), details of dependents, rental income information, and any other relevant income documents. - Can I save my return as a draft?
Yes. You can save your return as a draft if you can’t complete it in one session. Drafts are retained for 14 days, and you must submit your return within this timeframe or by April 18th, whichever is earlier. - What if my employer participates in the Auto-Inclusion Scheme (AIS)?
If your employer is in AIS, your employment income will be pre-filled in your tax return. You don’t need to report this income unless you have other income or wish to claim reliefs.