How much money requires you to file taxes

Do I Have to File Taxes?

Table of Contents Show

Other circumstances that require you to file
You may want to file even if you’re not required to
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Who needs to pay income tax in Singapore?
What is taxable and what isn’t?
How much income tax do I need to pay?
When do I need to file for income tax?
How do I file income tax in Singapore?
STEP 1: Prepare the necessary resources.
STEP 2: Log in to myTax Portal
STEP 3: Key In or Verify your details
STEP 4: Update existing tax reliefs
STEP 5: Declare other sources of income, if any.
STEP 6: Receive acknowledgement receipt
How can I pay for income tax in Singapore?
What happens if I miss the deadline to file my tax?
What happens if I fail to pay my taxes on time?

Not everyone is required to file taxes. Here are the income tax filing requirements for tax year 2021.

Not everyone is required to file their taxes. Whether you need to file your taxes depends on four factors: your income, filing status, age, and whether you fall under a special circumstance.

Even if you aren’t required to file taxes, you may want to file for tax credits and other benefits.

Income

The IRS sets new tax filing thresholds each year. If your 2021 gross income was greater than the amounts listed below, then you are required to file taxes.

Gross income is any income you pay taxes on. Your age is determined by how old you were on December 31, 2021.

Filing Status	Gross Income (Taxpayers under 65)	Gross Income (Taxpayers over 65)
Single	$12,550	$14,250
Head of Household	$18,800	$20,500
Married Filing Jointly	$25,100 (both spouses)	$26,450 (one spouse)
$27,800 (both spouses)
Married Filing Separately	$5	$5
Qualifying Widow with Dependent Child	$25,100	$26,450

If you can be claimed as a dependent on someone else’s tax return, your tax filing requirements are different. If that is the case, read up on 2021 filing requirements for dependents.

Other circumstances that require you to file

If you are self-employed, you are required to file taxes if you earned more than $400 in self-employment income.

If you pay special taxes, then you must file even if you don’t meet the filing threshold. Special taxes include additional taxes on qualified retirement plans or when you must pay taxes on tips you did not report to your employer.

In addition, you must file taxes if you or anyone in your household enrolled in health coverage through the Healthcare.gov Marketplace and you received premium tax credits in 2021.

If you have special tax considerations, you may want to use the IRS’ interactive tool to determine whether you need to file.

You may want to file even if you’re not required to

If you’ll receive a tax refund, you should file a tax return even if you’re not required to.

If you’re not required to file taxes but you withheld taxes throughout the year, you can get that money back when you file your tax return.

You may also be eligible for refundable tax credits that will give you a tax refund even if you don’t owe taxes. These credits include the Earned Income Tax Credit, the Child Tax Credit, and the American Opportunity Tax Credit.

If you didn’t receive your first, second, or third stimulus checks or didn’t get the full amount that you’re eligible for, you can claim the stimulus checks when you file a tax return.

If you’re not sure if you withheld taxes or qualify for tax credits, you may want to file a tax return anyway to avoid missing out. You have up to three years to file previous years’ taxes and/or claim past tax credits.

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The latest

In Singapore, most of us who are earning an income are paying taxes, as part of our contribution to the nation’s growth. Filing taxes can sometimes be complicated, but it doesn’t need to be. We’ve put together some answers to frequently asked questions to ease your yearly tax-filing exercise.

Who needs to pay income tax in Singapore?

According to IRAS, “all individuals earning, deriving or receiving income in Singapore need to pay income tax every year, unless specifically exempted under the Income Tax Act or by an Administrative Concession”.

Generally, as an individual, you will be required to pay tax for any particular Year of Assessment (YA) under the following circumstances:

You derive or receive income in Singapore.
- Income can be from a full-time job, as a sole proprietor, freelancer etc., or investments in Singapore.
You are working outside Singapore, with your employment status under Singapore
You are earning a gross income of $22,000 or more in a year; or/and
You are a Singapore Citizen (SC) or Singapore Permanent Resident (SPR) who resides in Singapore except for temporary absences; or
You are a Foreigner who has stayed / worked in Singapore (excludes director of a company) for 183 days or more in the year preceding the YA.

What is taxable and what isn’t?

Income can be taxable or non-taxable. Taxable income refers to income that is subject to taxation. Non-taxable income does not need to be taken into account during the taxation process. Below are some examples of taxable and non-taxable income.

Taxable Income	Non-Taxable Income
Employment Income Salary Bonus Director's Fee Self-employment income Rental Income	Windfalls, such as winnings from lottery Capital gains from stocks and property investments Pensions CPF Life Payouts

How much income tax do I need to pay?

Income tax is generally based on one’s income bracket. Singapore’s personal income tax rates for resident taxpayers are progressive. This means that the higher your income, the higher your tax – currently, the highest income tax rate stands at 22%. Below is a table of personal income tax rates based on income:

Chargeable Income	Income Tax Rate	Gross Tax Payable
First $20,000 Next $10,000	0 2%	0 $200
First $30,000 Next $10,000	- 3.5%	$200 $350
First $40,000 Next $40,000	- 7%	$550 $2,800
First $80,000 Next $40,000	- 11.5%	$3,350 $4,600
First $120,000 Next $40,000	- 15%	$7,950 $6,000
First $160,000 Next $40,000	- 18%	$13,950 $7,200
First $200,000 Next $40,000	- 19%	$21,150 $7,600
First $240,000 Next $40,000	- 19.5%	$28,750 $7,800
First $280,000 Next $40,000	- 20%	$36,550 $8,000
First $320,000 In excess of $320,000	- 22%	$44,550

This information is correct at time of publishing. For more updated information, visit the IRAS website.

Note: You can download an income tax calculator from the IRAS website to get a better idea of how much taxes you will need to pay.

Taxpayers can also expect tax reliefs. Typically a result of government programmes or policy, tax reliefs help to reduce the amount of taxes that you have to pay. In Singapore, some common tax reliefs or deductions you may qualify for include the following:

Parent Relief
Child Relief
NSman Relief
Course Fees Relief
Life Insurance Relief
Central Provident Fund (CPF) Relief
Supplementary Retirement Scheme (SRS) Relief
Deduction on donations

Do note that there is a limit to the amount of tax relief you can receive – for personal income tax in Singapore, the tax relief currently stands at $80,000.

When do I need to file for income tax?

Tax can be filed starting from the end of the first quarter of the year – you can do it electronically via the IRAS website from 1 March to 18 April every year. The assessment is for income earned in the preceding year – for example, in 2022, you would be filing for taxes for the income you received or derived in 2021. If you prefer paper filing, you will have to submit your completed tax form to the IRAS headquarters by 15 April.

How do I file income tax in Singapore?

There are two ways to file taxes – electronic filing and paper filing. Most taxpayers file their taxes online. Filing for income tax electronically is relatively easy:

STEP 1: Prepare the necessary resources.

Make sure you have these ready:

SingPass / IRAS Unique Account (IUA)
Form IR8A (if your employer is not participating in the Auto-Inclusion Scheme)
Particulars of your dependents (e.g. child, parent) for new relief claims
Details of rental income from your property and other income, if any
Business Registration Number / Partnership Tax Reference Number (for self-employed and partners only)

STEP 2: Log in to myTax Portal

Log in to myTax Portal with your SingPass / IRAS Unique Account (IUA).
Click on "Individuals" > "File Income Tax Return" and follow the instructions.

STEP 3: Key In or Verify your details

Key in details such as your income, deductions and reliefs. If your organisation participates in the Auto-Inclusion Scheme, these details will be pre-filled. You will simply need to verify the information.

STEP 4: Update existing tax reliefs

If you qualify for additional or new tax reliefs (e.g. relief for newborn child), please include your claims. If you previously claimed any reliefs that you no longer qualify for (e.g. course fees), you will need to remove them.

STEP 5: Declare other sources of income, if any.

If necessary, declare your other sources of income (e.g. rental income).

STEP 6: Receive acknowledgement receipt

You will see an acknowledgement page after successfully e-filing. Save or print a copy if you can.

You can find a more detailed process here.

For those who are unable to file taxes online, IRAS will send them the relevant paper tax return between February to March.

How can I pay for income tax in Singapore?

One of the most common questions taxpayers may have is how to pay income tax in Singapore. Most taxpayers pay their taxes via GIRO, via a one-time payment, or 12-month interest-free instalments. You can make a payment via electronic payment modes such as AXS, internet banking, phone banking, mobile banking (PayLah and PayNow apps) and SAM, or head to a post office to pay using NETS.

Taxpayers who face difficulties with their tax payment may apply for a longer payment plan via myTax Portal.

What happens if I miss the deadline to file my tax?

You will incur a composition amount and may be summoned to Court for late or non-filing of taxes. Appeals for a waiver of the composition amount must be made online via myTax Portal and is subject to approval.

IRAS will send you reminders nearer to the deadline, so do try to file your taxes ahead of time. If you need more time to file your income tax return, do apply for an extension online via myTax Portal.

What happens if I fail to pay my taxes on time?

You have one month from the date of the Notice of Assessment (NOA) to pay your taxes. Should you fail to make payment before the stipulated date, a late payment penalty of 5% will be imposed on the unpaid tax. If continue to default on payment, you may face an additional penalty of 1% per month – if tax remains unpaid 60 days after the 5% penalty was imposed. This penalty will be imposed for each month payment is not made, up to a maximum of 12% of the unpaid tax.

Appeals for a waiver of the late payment penalty must be made online via myTax Portal and is subject to approval. Further enforcement actions will be taken to recover the taxes if it continues to remain unpaid.

If you are unable to pay the tax in full, you can apply to pay via instalments – monthly payments via GIRO for up to 12 months, interest-free.

Conclusion

Filing taxes is part and parcel of adult life; it can be complex, but it gets easier once we have familiarised ourselves with the system. In general, just remember – if you are earning an income in Singapore of more than $22,000 per annum, you’ll need to pay taxes. You’ll also get reminders from IRAS via mail and text to file your taxes, so, try to do it as early as you can – in this way, you have ample time to seek help or rectify mistakes if necessary, as well as avoid any additional hassle or fees.

Author(s):

Shu Rin Hoe is a business writer with over nine years of experience in writing, spanning lifestyle, travel, health and wellness and finance.