The Inland Revenue Department today sent out about 2.66 million tax returns for individuals for the year of assessment 2024-25.
Taxpayers should file their tax returns by June 2. For sole proprietors, a three-month period is allowed and the filing deadline is August 2. Those filing through eTAX will be granted a one-month extension.
At a press conference this afternoon, Commissioner of Inland Revenue Benjamin Chan said that salaries tax, tax under personal assessment and profits tax for 2024-25 will be reduced by 100%, subject to a ceiling of $1,500 per case.
From the year of assessment 2024-25, a two-tiered standard rates regime for salaries tax and tax under personal assessment has been implemented.
When calculating the amount of salaries tax or tax under personal assessment at standard rates, the first $5 million of net income is subject to the standard rate of 15%, and the portion exceeding $5 million is subject to the standard rate of 16%.
Also, there has been an increase in the deduction ceilings for home loan interest or domestic rent from $100,000 to $120,000 for taxpayers who were residing with their newborn children born on or after October 25, 2023.
Furthermore, a new deduction for expenses on assisted reproductive services has been introduced, subject to a ceiling of $100,000.
On the enhancement measures for the deduction of expenses under profits tax, there have been tax deductions for expenses incurred for reinstating the condition of leased premises to their original condition, and the time limit for claiming annual allowances in respect of industrial/commercial buildings or structures has been removed.
Mr Chan added that in July, the department will launch three interconnected portals, namely Individual Tax Portal, Business Tax Portal and Tax Representative Portal, under eTAX to facilitate taxpayers and enhance the efficiency, reliability and accuracy of return filing.
On revenue collection, the department collected $374.5 billion for 2024-25, an increase of 10% from the previous year.
The revenue collection for 2025-26 is estimated at $401.4 billion, representing a 7% year-on-year increase.
