Singapore simplifies tax filing for commission agents, delivery workers

Over 100,000 commission agents will benefit from this simplified process.

The Inland Revenue Authority of Singapore (IRAS) is simplifying the tax filing processes for self-employed individuals in the city, including commission agents and delivery workers.

Over 100,000 commission agents will benefit from pre-filled income information in their tax returns, sourced from 650 commission-paying organizations.

The Fixed Expense Deduction Ratio (FEDR), previously limited to commission agents, private hire car drivers, and taxi drivers, is also now extended to include delivery workers. 

Eligible self-employed persons (SEPs), including delivery workers, can now claim business expenses based on a fixed percentage of their gross income to eliminate the need for detailed deductions based on actual business expenses incurred.

All taxpayers, including employees and self-employed individuals, must file their Income Tax Return on myTax Portal by 18 April to avoid late filing penalties.

Additionally, over 1.8 million taxpayers qualify for the No-Filing Service (NFS) and will be notified accordingly. Those on Direct Notice of Assessment (D-NOA) will receive their tax bills directly from mid-March.

Commission-paying intermediaries have also received a mandate to submit identification and income information of their self-employed commission agents by 1 March. 

Moreover, eligible self-employed delivery workers can claim tax deductions based on a fixed proportion of their annual gross income from delivery services. This applies to income earned from 2023 onwards.

To facilitate easier tax payments, taxpayers are encouraged to opt for digital payment methods like GIRO and PayNow upon receiving their tax bills in late April 2024. 

IRAS advised to keep the contact details and notification preferences updated on myTax Portal for timely notifications about tax bills.