No need for tax returns for some employees, retirees

A GROUP of 45,000 people - many retirees - will find things a lot less taxing this year when it comes to dealing with the Inland Revenue Authority of Singapore (Iras).

Most won't even have to file a return at all while the rest will have to do so only if key financial details have changed in the past two years.

The people in the group have been singled out as part of a pilot scheme aimed at further streamlining the tax filing process.

The first segment comprises about 35,000 taxpayers receiving under $20,000 of dividends with no other source of income. About 75 per cent are over 50, according to Iras.

These people do not have to pay tax and usually get a refund as tax is deducted at source on dividends. But this year, they will not have to file a return in order to trigger that refund cheque.

Since Iras automatically gets details of all dividend income from the Central Depository, it will calculate the refund without needing the return. The cheques should be sent out by the end of July.

Life is going to get a bit easier for the other 10,000 people in the pilot group as well.

These have a straightforward tax position if they have met two criteria: salary data is already sent by their employers to the taxman and the reliefs they claim - for an aged parent, for example - have not changed for two years.

Again, Iras will calculate their tax without needing a return and send them a notice of assessment by June.

These taxpayers should log onto the Iras website to ensure the relevant information has been correctly pre-filed on their form. If their circumstances have changed - such as having another child - they will have to e-file by April 18.

The 45,000 taxpayers in the pilot run form about 3 per cent of Singapore's total taxpayer base of 1.4 million or so but Iras may extend the initiative after getting feedback.

In a bid to make e-filing even less onerous, Iras officers are fanning out to the heartlands to help taxpayers with online filing. Look for them at the Chong Pang, Bedok and Yew Tee community clubs where they will be at till April 18.

Hawkers at Tampines Street 11, the first food centre here with a wireless Internet connection, are also being encouraged to give e-filing a go.

Iras officers will train staff of the hawkers' association to help members with e-filing.

Iras said that all taxpayers should have received forms or letters and they can start e-filing. The deadline is April 18. Those submitting hard copy returns must post them by midnight on April 15.

sushyan@sph.com.sg



MAKING A START

The 45,000 taxpayers in the pilot run form about 3 per cent of Singapore's total taxpayer base of 1.4 million or so but Iras may extend the initiative after getting feedback.