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

Author Osome Content TeamOsome Content Team

3 min read
Running My Business

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

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

You might like it

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
What SMEs Need To Know About Singapore Budget 2022
Running My Business

What SMEs Need To Know About Singapore Budget 2022

As Singapore experiences broader economic recovery, Small & Medium-Sized Enterprises (SMEs) are still struggling from the long-term effects of the pandemic. Budget 2022 sets out measures to help struggling workers and businesses and key changes to advance Singapore’s green transition.

·9 min read
10 Stress Management Tips For New Entrepreneurs
Running My Business

10 Stress Management Tips For New Entrepreneurs

With the pandemic affecting most companies’ operations, business owners are now finding it tougher than ever to keep their business afloat. As a new entrepreneur starting your business during these times of crisis, stress is unavoidable. Find out how to manage your stress levels with these 10 tips.

·6 min read
3 Things To Consider Before Renting Your First Office Space
Running My Business

3 Things To Consider Before Renting Your First Office Space

If you have always been working from home for your small business and are contemplating moving to a bigger space to accommodate your staff and to have a central office location, you may be looking out for office spaces to rent.

·6 min read
Digital Payment Trends For E-commerce Sellers To Know
E-commerce

Digital Payment Trends For E-commerce Sellers To Know

Today, consumers are switching from traditional payment methods, such as cash, cheque and cards to digital payment. The global pandemic has fuelled this unprecedented shift in the consumer’s behaviour.

·6 min read
What You Need To Include In An Invoice for E-commerce
E-commerce

What You Need To Include In An Invoice for E-commerce

For business owners who own and run an online store, you probably already know that invoices must be sent to your customers for the services you provide or the goods you sell, as a form of purchase proof.

·5 min read
Should You Consider Using Cryptocurrency in Your Business Operations?
Running My Business

Should You Consider Using Cryptocurrency in Your Business Operations?

There are more than 4,000 cryptocurrencies that exist. Before you jump on the bandwagon, assess whether cryptocurrencies are suitable to be used in your business.

·8 min read
5 Tips for a Streamlined Payroll Process for SMEs
Payroll

5 Tips for a Streamlined Payroll Process for SMEs

For a business to run smoothly, the payroll process must be streamlined and error-free. It is easy to streamline and optimize your payroll and other back-office processes within your SMB. Did you know that this can improve your cash flow?

·5 min read
What Is a Register of Controllers and Why Singapore Companies Now Have To Submit This Document
Secretary

What Is a Register of Controllers and Why Singapore Companies Now Have To Submit This Document

In April 2020, Singapore businesses will have to submit the Register for Registrable Controllers to ACRA. Before, your company was only obliged to maintain it internally. Now you will have to file the Register with ACRA electronically and maintain it updated at all times.

·5 min read
How To Change My Singapore Company’s Name?
Secretary

How To Change My Singapore Company’s Name?

There might come a point when the name you chose for your company during incorporation no longer fits where you want it to go. Often an application to ACRA to change your company name might be more efficient and cheaper, too.

·8 min read
How To Close Your Company From Start to End
Running My Business

How To Close Your Company From Start to End

Shutting down a company is a natural part of a business cycle. Business owners close down their companies for various reasons, either by their own choice or ordered by the Court. This article will go through the process of winding up and striking off a company.

·12 min read

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

We’re using cookies! What does it mean?