What is an NOA and how to get NOA in Singapore 2023?

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Written By Loanbuddy Singapore
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What is an NOA and how to get NOA in Singapore 2023?

Every Singaporean taxpayer is issued a Notice of Assessment (NOA) by the IRAS (Inland Revenue Authority of Singapore) for tax proceedings. The NOA is issued for a particular tax year to both individuals and corporate taxpayers. You are required to follow the NOA and pay the taxes listed on it.

To help you understand what are the succeeding requirements, this article will explain what this document contains and how to obtain one for your tax assessment.

NOA income tax

What is an NOA (Notice of Assessment)?

The NOA is a document created by the IRAS to function as your official tax document. It typically contains your total income chargeable to tax plus the tax levied upon it. You, as an individual can expect to obtain your NOA right after submitting final tax filings. The authority after reviewing the filed details processes to dispatch hard and soft copies of the NOA from the end of April month.

The IRAS issues a single type of NOA for Individual taxpayers and 4 types of NOAs for companies:

Type 1 NOA– Issued for companies who have successfully filed their ECI (Estimated Chargeable Income).

Type 2 NOA– Type 2 NOA is issued for three reasons-

  • When a company fails to file ECI within three months from the end of the financial year.
  • When a company fails to submit Form C Form C-S before the deadline.
  • When a company declares a low ECI.
  • When IRAS has to issue notice for advance tax assessments.

 Type 3 NOA– After the successful submission of Form C and Form C-S, type 3 NOA is issued by the IRAS.

Type 4 NOA– This is the final notice after IRAS has evaluated the company’s chargeable income and tax thereon. Your company can file an objection against Type 4 NOA before the end of 2 months from the date of issue of NOA.

All of the NOAs not only indicate the tax but also the instructions to pay. Therefore, along with payment modes, settlement deadlines are also appeared in the NOA. The IRAS receives settlement through cheque, cash, online banking, NETS, telegraphic transfer, cashier’s order and GIRO. The payments need to be settled within 1 month according to the NOA deadline and a penalty of 5% of tax is attracted in case of late payments.

NOA income assessment

Why NOA is so important in Singapore?

An NOA acts as an invoice of tax in Singapore. Once you file your income details, the IRAS generates this tax bill in tune with your all tax settlement details- tax due and deadlines. However, the amount is not always fixed and NOA gives 30 days time limit to settle your tax duties. You can also file a formal objection that contains all the issues you have flagged within 2 months.

For Additional Assessments, what is the Statutory Deadline in Singapore?

The Singapore law requires IRAS to provide additional estimation within a specified time limit. The statutory time limit is fixed to 4 years to charge any assessment or any additional assessment. However, In case of fraud, the time limit of 4 years is not applicable.

All taxpayers are required to maintain their accounting documents and records for at least 5 years.

How to obtain NOA in Singapore?

There stand two scenarios for obtaining your NOA here in Singapore. Either the NOA is found on MyTax Portal or not.

If MyTax Portal contains your tax bills, follow these steps to get your NOA-

  • Login to MyTax Portal through your Singpass or SingPass Foreign Account
  • Click on Notices/Letters
  • Next click on ‘Corporate Tax’
  • Then click on ‘View Notices’
  • Download your NOA for the current tax year. You can also download your three previous years’ NOAs.

If MyTax Portal does not show any tax bills, you can obtain them from the Revenue House, Taxpayer & Business Service Centre at IRAS. You will need to pay a search fee of SGD20 per search and a document fee of SGD10. The certified copies can be obtained at SGD3 for each page and uncertified ones for SGD0.30 per page. To pay for these services, you can use internet banking to transfer funds from your account to the IRAS bank account.

The representatives and tax advisors are required to carry the following documents-

  • LOA (Letter of Authorization) from the business director containing full name NRIC number, signature and explanation in detail for the requirements.
  • In case of original NRIC is not carried, a digital copy of your passport is required.
  • When the taxpayer is sending its representative, he or she must have his or her original NRIC.

Singapore tax returns are filed online since 2020. The IRAS sends its tax bills to all taxpayers before May 31st. Then the taxpayers will have 30 days to make the tax payment. It’s worth noting that the IRAS may ask you for an explanation regarding significant differences in income reported under Form C, C-S with income reported in ECI. Singaporean directors may also face fines for failure to tax return filing on time.

How to read NOA?

In the case of Individuals, the guidelines to read an NOA are as follows-

  • Assessable Income– This is the total income earned from various sources such as employment, investments, professional services, rents from properties or others.
  • Personal Reliefs– Individuals can claim personal relief from the assessable income known as tax benefits.
  • Chargeable Income– This is the total on which your tax is calculated by the IRAS. The amount comes after deducting personal reliefs from the assessable income.
  • Tax– According to the tax rates in force, tax is calculated on the chargeable income.

For companies, an NOA should be read after understanding these below guidelines-

  • Assessable Income– This is the total amount earned during a financial year by a company from its business or profession. This income matches the income presented in company’s estimated chargeable income, form C, form C-S. You can also refer to it as income before giving the effects of deductions.
  • Chargeable Income– This income is calculated by the IRAS itself after deducting all the eligible deductions available for the company from the assessable income amount.
  • Payable Tax amount– The IRAS wants the companies to pay this amount which is calculated as per the prevailing tax rates in Singapore on chargeable income.
  • Refund/Tax repayable– When the IRAS analyzes and estimates that the final tax payable is lower than the advance tax paid in the first NOA, refunds appear on the final NOA.

How does IRAS estimate Income Tax?

The IRAS computes any person’s (including individuals and corporates) based on the following formula-

  • Statutory Income- Total Income less allowed total expenditure.
  • Assessable Income- Statutory Income reduced by donations.
  • Taxable Income- Assessable Income as reduced by giving effects of personal reliefs/deductions.

Who are the eligible individuals to file Personal Tax Returns in Singapore?

An individual is required to furnish his or her personal income tax returns if falling in one of the below criteria-

  • Every resident individual
  • If the individual has an employment pass in Singapore
  • If you have a PEP (Personalized Employment Pass). You may note PEP gives you greater flexibility than that traditional employment passes.
  • A person holding the Entrepass card
  • If your annual income exceeds or equals SGD22,000.
  • No matter what your status or income is, if you receive a letter from the IRAS to file a personal tax return, you fall in the criteria.

What are the employers’ obligations for personal income tax?

The employers are mandatorily required to issue form IR8A to their employees to get the details of remuneration, and benefits-in-kinds for every previous calendar year.

What is an Assessment year?

Every person who is liable to pay tax for one financial year is assessed in the next financial year. The next financial year in which the previous financial year’s income is assessed is regarded as an assessment year.

You have the liberty to choose any fiscal year closing period for your company to be its fiscal year. Normally companies choose 31 December as their closing period. So we call that its financial year duration is Jan 1st to Dec 31st. In case where any company’s fiscal year’s span is more than 12 months, it must be declared and tax must be levied considering 2 years at the time of income tax return filing.

For example. If a company was incorporated on July 2021 with a fiscal year-end date of Dec 31st, then the company must declare its income based on two years while filing ITR as below-

  • The fiscal year July 21 to December 31 is included in the 2022 tax year.
  • The fiscal year Jan 1 to December 31 is included in the 2023 tax year.

The ACRA system is straightly linked with the IRAS website to make sure that a company’s tax returns for the financial year in the assessment are promptly informed to the IRAS.

The Takeaway

The NOA is a significant document which entails all the necessary actions any taxpayer must follow for their income tax filings for each assessment year in Singapore. It is your responsibility to understand what it is and how can you avoid heavy penalties imposed by the IRAS and pay your taxes on time.

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