Common tax-filing mistakes to avoid

If you’ve only got a minute:

• Tax-filing is treated differently between an employee and a self-employed person. 
• Even if your employer has sent your employment income details to IRAS, you are still required to file your Income Tax Return unless you have received the No-Filing Service (NFS) notification.
• If you are an employee under the Auto-Inclusion Scheme (AIS) for employment income, you are still required to file for Income Tax return if there are other incomes you wish to declare or wish to claim for personal reliefs.

It’s tax-filing season again! If you need to submit an income tax return for Year of Assessment (YA) 2023 (for your income earned in the year 2022), do so by 15 April 2023 for paper filing or 18 April 2023 for e-Filing to avoid penalties.

If you need more time to submit your tax return, request for an extension to file online via myTax Portal.

If you are not sure on how to file your tax correctly, here are some tips for you!

Tax-filing mistakes to avoid – for employees

Tax-filing for self-employed persons

Tax-filing is treated differently between an employee and a self-employed person. For instance, a self-employed person can claim trade losses against his trade income whereas an employee is not entitled to such claims.

As a self-employed with your own business, you work for yourself, and are in the position to realise a business profit or loss. Your income is derived from the buying and selling of goods, or from providing professional or personal services.

Some examples of a self-employed person include:

• Baby-sitter
• Insurance agent
• Real estate agent
• Direct seller
• Freelancer (e.g. you receive fees for providing services as a delivery rider, consultant, graphic designer)
• Hawker (you are the owner of a hawker business or a food stall)
• Owner of a business that buys and sells goods and/ or services
• Owner of an online business (i.e. you buy and sell goods or provide services through the Internet)
• Owner of your own practice (e.g. accountant, architect, doctor, lawyer)
• Taxi driver / Private-hire car driver
• Private tutor (you look for your own students by yourself or through agencies and do not receive a salary from a tuition centre)

Tax-filing mistakes to avoid – for self-employed

Find out more about Tax Season 2023 here.

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Disclaimers and Important Notice
This article is meant for information only and should not be relied upon as financial advice. Before making any decision to buy, sell or hold any investment or insurance product, you should seek advice from a financial adviser regarding its suitability.