1. Osome Blog Singapore
  2. All You Need to Know About IRAS (Inland Revenue Authority of Singapore)

All You Need to Know About IRAS (Inland Revenue Authority of Singapore)

Author Osome Content TeamOsome Content Team

3 min read
Running My Business

Top Singaporean tax body — Inland Revenue Authority (or IRAS) deals with collecting taxes and helping out the government with any tax matters. Osome guides you through its functions and structure.

All You Need to Know About IRAS (Inland Revenue Authority of Singapore)

The Inland Revenue Authority of Singapore (or IRAS) is a governmental body that deals with collecting taxes. It’s under the Ministry of Finance’s authority and also acts as a chief tax advisor to the government.

Let’s have a look at how IRAS functions and what it is responsible for in particular.

What does IRAS do?

All the questions either an individual, or a company, or even a country might have on taxes  — the Inland Revenue Authority deals with all of them in Singapore. But the two main functions of the body that can be outlined are collecting taxes of all types and acting as a tax advisor to the government.

Collects taxes

That is the part your accounting services provider in Singapore is surely well aware about.

Let’s have a quick look at what types of taxes IRAS deals with.

  • Income tax — a tax chargeable on the income of individuals and companies.
  • Goods and Services Tax (or GST) — basically, a tax on consumption of any goods and services, including imports. Charged by the supplier of the above and usually included in the price.
  • Property Tax — applied to any property owners, based on the expected rental values of the properties.
  • Stamp Duty for Property
  • Stamp Duty for Property-Holding Entities
  • Stamp Duty for Shares
  • Withholding Tax
  • Trust
  • Estate Duty
  • Private Lotteries Duty
  • Betting and Sweepstake Duties
  • Casino Tax
  • Clubs and Associations
  • Charities

Dividends, capital gains and inheritance are not to be taxed.

IRAS collects taxes that make 70% of the Government’s Operating Revenue, with the sum mostly going to support the countries’ economic and social programmes.

Advises the government on tax

IRAS is the main tax advisor for the Singaporean government. It drafts the tax policy, aids the Ministry of Finance to draft tax legislation and deals with drawing up any tax treaties. For example, Singapore has nearly a hundred of double taxation agreements with other countries, which helps people to avoid being taxed twice on their income.

What is special to know about taxation in Singapore?

Singapore follows a territorial tax system which means that taxes companies pay are based on where the profits come from, not where the company is registered.

Paul’s construction engineering company is registered in Singapore. However, he’s based in France and all his clients are in France. He issues bills for them in France and they pay him money to his company's French bank account. The only money from his profit that reaches his Singaporean bank account is his company expenses. IRAS taxes only this sum.

A paragraph of IRAS history

The body as it is dates back to 1992. The highlights of the IRAS history are 1947 — when the Singapore Income Tax Department was formed, dealing with both individual and corporate tax returns; and 1960 — when the Inland Revenue Department was formed, paving the way to the IRAS creation.

What is the IRAS’ structure?

As IRAS deals both with individuals and businesses, it’s divided into departments accordingly. You can check out its full structure below.

IRAS departments deal with both

How to deal with IRAS?

Whether you are an individual or a business, to find out your tax status, you should sign in to the IRAS personal account known as myTax Portal.

If you enter your individual account, you will need your SingPass ID. For businesses — it’s a CorpPass ID.

IRAS offers you a personal account known as myTaxPortal

If you want to connect IRAS and your accounting software — it is possible. However, your accounting software must meet the technical requirements IRAS has set and must make it to this list of approved software.

How to get in touch with IRAS?

And, of course, with IRAS trying to get as digital as possible — you can always turn to Virtual Assistant “Ask Jamie”, who was designed to make interactions with taxpayers easier. Meet Jamie, who appears in the right corner of the IRAS website:  

You can ask IRAS your questions

Conclusion

Main IRAS agendas are to make collecting taxes easy, keep tax levels competitive and help to boost Singapore’s economy. It’s been getting more and more digital to ease the burden of tax reporting for Singapore-incorporated companies and local residents.

Share this post:
Subscribe

Tips to run your business smarter. Delivered to you monthly.

By clicking, you agree to our Terms & Conditions , Privacy and Data Protection Policy

Related Articles

How To Interview a New Employee
Running My Business

How To Interview a New Employee

Hiring the right talent is no easy feat. However, asking the right questions can help you pick the right candidate for the job. Read on to learn more about guiding the conversation, so you can distinguish the right candidate for that position from another candidate who simply wants a job.

·6 min read
Accounting Treatment for Cryptocurrency
Running My Business

Accounting Treatment for Cryptocurrency

Cryptocurrency is an innovative trend that is here to stay. However, digital assets can be volatile and affected by prominent individuals – that’s why it is crucial to get your cryptocurrency accounting treatment right. Read on as we delve into the appropriate cryptocurrency accounting treatment.

·5 min read
How To Write An Employee Termination Letter
Running My Business

How To Write An Employee Termination Letter

When it comes to running your own business, you may inevitably have to terminate your employees. While it isn't the easiest thing to do, you can still keep your demeanour and tone professional. Read on to find out how you can write a termination letter.

·6 min read
10 Businesses You Didn’t Know Were Started By Women
Running My Business

10 Businesses You Didn’t Know Were Started By Women

We’re celebrating International Women’s Day with these successful business leaders. How many do you know?

·4 min read
10 Tips for Founders To Save More Time
Running My Business

10 Tips for Founders To Save More Time

On certain days, it just feels like there are not enough hours in the day. Months fly by and you wonder where the time went. As a founder of a company, you’ll need to handle tasks such as problem-solving, decision-making and even staffing matters.

·6 min read

Tips to run your business smarter. Delivered to you monthly.

We’re using cookies! What does it mean?