On 26 March 2020, the Inland Revenue Authority of Singapore (IRAS) has declared a series of support measures for taxpayers in response to COVID-19 pandemic.
I. Support for Companies
All companies with Corporate Income Tax (CIT) payments due in the months of April, May and June 2020 will be granted an automatic three-month deferment of these payments. The CIT payments that are deferred from April, May and June 2020 will be collected in July, August and September 2020 respectively.
Companies can expect to receive a letter from IRAS by 15 April 2020. Those on GIRO and have ongoing CIT payments due in April, May and June 2020 can view their revised installment plans at myTax Portal in early May 2020. Companies who are not on GIRO and are required to make a one-time CIT payment in April, May and June 2020 can use the Corporate Tax Payment Deferment Calculator to view the extended payment due date. For more information, please refer to Paying Corporate Income Taxes.
II. Support for Self-Employed
Deferment of GIRO Deductions
The income tax payments due in May, June and July 2020 will be deferred automatically for three months to August, September and October 2020 respectively. This means that there will be no income tax payments in May, June and July 2020. No application is required.
Payment Extension for One-Time Payments
For one-time income tax payments due in May, June and July 2020, there will be a 3-month deferment to August, September and October 2020 respectively. For example, if the due date is initially 15 May 2020, the extended due date for payment will be 15 August 2020. No application is required. Find out more on how the deferment of tax payment work.
III. Property Tax Measures
Non-residential properties will be granted property tax rebate for the period 1 January 2020 to 31 December 2020. Commercial properties badly affected by COVID-19 like hotels, serviced apartments, tourist attractions, shops and restaurants will receive a 100% rebate. Other non-residential properties such as offices and industrial properties will get a 30% rebate on their property tax payable. The IRAS will send out the rebate notices by 31 May 2020. Property owners can expect to receive their refunds by 30 June 2020. For more information and FAQs, please refer to this link.
IV. Jobs Support Scheme (JSS)
The Jobs Support Scheme (JSS) was launched at Budget 2020 to help businesses retain their local employees during this period of uncertainty. Eligible employers will now receive a 25% cash grant (up from 8%) on the gross monthly wages of each local employee (Singapore Citizens and Permanent Residents) for the months of October to December 2019, subject to a monthly wage cap of $4,600 per employee.
Higher tiers of support on top of the base rate of 25% will also be given to businesses in severely-affected sectors. Employers eligible for the additional tiers of support will be informed closer to the date of the first payout (end-May 2020).
The JSS will also be extended to cover nine months of wages (up from three months), which will be paid in two additional tranches in July 2020 and October 2020. Employers do not need to apply for the JSS. The grant will be computed based on CPF contribution data. Employers can expect to receive the first JSS payment from IRAS by 31 May 2020 and subsequent payments in July and October 2020.
V. Support for Employees
Some taxpayers who have filed their Income Tax Returns for Year of Assessment (YA) 2020 would have received their electronic Notice of Assessment (i.e. eNOA or tax bill).
Apply to Defer Tax Payment (GIRO)
Taxpayers may opt to defer their income tax payments due in May, June and July 2020 if they need help with tax payments. If taxpayers are paying by GIRO, there will be no GIRO deduction in May, June and July 2020. The income tax deduction will resume in August, September or October 2020 and the end-date of installment plan will be extended by 3 months. Sign up for this deferment option here by 31 July 2020.
Apply to Defer Tax Payment (Lump Sum Payment) If taxpayer is making a lump sum payment, they may opt to defer tax payment by 3 months.