Why does the Notice of Assessment (NOA) in Singapore hold tremendous significance for both individuals and businesses? And how can it affect your tax compliance clarity? These might be the several common questions you have in mind when encountering the Singapore NOA.
With a clear and concise approach, this article aims to offer practical insights on the NOA for you to confidently comprehend this document while doing business in Singapore. Let’s begin.
What is the Notice of Assessment in Singapore?
The Notice of Assessment (NOA), commonly known as a “tax bill”, is a critical document in the Singapore taxation system issued by the Inland Revenue Authority of Singapore (IRAS).
It offers you, the taxpayer, a comprehensive overview of your tax assessment for a specific fiscal year.
The content encompasses your income amount, deductions, tax liabilities, the amount owed, filing deadlines, and so forth.
What taxation details does the NOA cover?
Interpreting the Notice of Assessment (NOA) involves analyzing the information provided and understanding its implications. Here are some key points to help you comprehend the details effectively.
Within your company’s income tax Notice of Assessment, you will find vital information that includes:
Assessable Income Amount
This figure denotes the total income amount as reported in your Estimated Chargeable Income filing, or the relevant tax return forms. It reflects the sum of your income before considering any corporate tax deductions.
Chargeable Income Amount
This is the actual taxable income on which the IRAS imposes taxes, computed by deducting the relevant allowable deductions from the Assessable Income Amount.
Tax Payable
This represents the amount of tax you must pay based on the current tax rates applied to the chargeable income. It indicates your company’s tax liability and must be settled within the given timeframe.
Tax Repayable/ Discharged Amount
In cases where the IRAS determines that the final tax payable amount is less than the tax already paid as per the initial NOA, the excess amount will be refunded to your company.
The authority shall reflect this amount in the final tax bill.
How many types of NOA are there for a Singapore business?
A solid grasp of the NOA types is indispensable for tax compliance and optimal financial planning in your Singapore business.
There are 4 types of Notice of Assessment in Singapore:
- Type 1: issued after ECI is filed correctly.
- Type 2: issued in case of late/ unqualified filings of ECI/ tax return forms or advance assessment. Objection allowed.
- Type 3: issued when the ECI amount differs from the information on Form C/ Form C-S/ Form C-S (Lite) after these forms are filed. No objection is needed.
- Type 4: issued as the final notice with adjustments by IRAS (if any). Objection allowed.
Here are detailed explanations of the four types of NOA you may encounter during tax obligations in Singapore:
Type 1 NOA
Type 1 Notice of Assessment (NOA) is the tax bill issued by the IRAS to your company a few months after the Estimated Chargeable Income (ECI) is submitted on time. This means no later than 3 months after the end of the financial year.
Your company or your appointed tax agent will be in charge of filing the ECI.
Please note that Type 1 will not be issued when you file a nil ECI (no chargeable income available for the assessment year).
Type 2 NOA
The Type 2 NOA is issued under the following circumstances:
- Your company doesn’t submit its ECI within 3 months from the end of the fiscal year (unless the company qualifies for the filing waiver);
- You fail to meet the IRAS deadline for submitting Form C/ Form C-S/ Form C-S (Lite);
- Your business declares a significantly lower ECI than stated in the submitted Forms; or
- In the case of advance tax assessments.
Upon receiving the Type 2 document, you have the option to file an objection against the decision (if any).
What are Form C and Form C-S/ Form C-S (Lite)?
Form C and Form C-S are corporate income tax return forms that your Singapore company filed with the IRAS to declare its actual income.
- Form C-S/ Form C-S (Lite) are simplified forms designed for eligible small businesses with annual revenue of $5 million or below.
- Form C, on the other hand, is a form that requires more detailed financial information. All businesses unqualified for a Form C-S/ Form C-S (Lite) shall file this form.
Read more in our dedicated article on Singapore tax return forms.
Type 3 NOA
After your company files its Form C/ Form C-S/ Form C-S (Lite) correctly, IRAS will evaluate the ECI stated in Type 1 against the new information from the tax form.
If the amount stated in the tax return differs from the ECI, the IRAS will send the Type 3 to you. This is usually the case for companies with complex affairs.
Since IRAS will automatically adjust the ECI amount in the next NOA, no objection is needed.
Type 4 NOA
Type 4 NOA is the final evaluation with adjustments made by the IRAS (if any), marking the last opportunity to address any concerns before the decision is finalized.
Once the authority has completed the assessment process, this NOA shall be issued to your business, typically on 31 May of the following year. This is the date for companies with straightforward affairs (around 90% of the Singapore company population).
You will then review the document and take any necessary action (e.g. paying taxes, filing objection notices, etc.)
Filing your objection is only allowed within 2 months from the NOA issuance date, so make sure to act swiftly within this period. Adhering to this strict timeline is crucial to protect your company from potential damage.
Remember to retain a physical copy of every NOA to ensure proper record-keeping.
Important Note For All NOAs
Regardless of the ọbjection result, your company will have to pay the tax amount stated in every Notice of Assessment, no later than 1 month from the NOA date.
- If the notice is accurate, your business shall pay the mandatory taxes without any additional steps.
- Suppose there is any issue with the NOA, you can file an objection notice to the IRAS. Rest assured that any excess tax paid will be refunded if the notice is approved.
Now that you have acquired a fundamental grasp, let’s look into some commonly raised queries: Where can you conveniently access and review your NOAs online? Additionally, what recourse do you have in case of misplacement or loss?
What is the process of getting a copy of the NOA?
In the unfortunate event of losing your NOA, there are steps you can take to obtain a copy. Depending on the specific situation, several options are available as follows.
For tax bills available on myTax Portal
Normally, your tax bills will be updated on the myTax Portal managed by the IRAS.
You can conveniently view and print your tax bills for the current Year of Assessment as well as the preceding three years by following these steps:
- Step 1: Log in using your Singpass
- Step 2: Click on “Notices/ Letters”
- Step 3: Select “Corporate Tax”
- Step 4: Choose “View Notices” to see and download your NOAs
Consider this option your top choice, as the service is both free of charge and time-saving.
For tax bills not available on myTax Portal
What can you do when your NOAs are not accessible on the online portal?
In this case, your business has the option to request a copy of the tax bill (up to 7 back years, subject to availability) directly from the IRAS Revenue House.
Search and document fees will apply as follows:
- Document search fee: SGD 20
- Fee per page of the document: SGD 3 per page (certified copy) or SGD 0.3 per page (uncertified copy)
This payment shall be conducted through the Internet Banking Fund Transfer to the IRAS bank account.
Should you prefer to collect your documents in person from the Taxpayer & Business Service Centre at Revenue House, remember to schedule an appointment in advance. You should book your appointment online at least 2 working days before your intended visit.
Can a representative or tax agent come on your behalf?
If you, as the company director, are unable to personally visit the Revenue House and choose to send a representative, he or she must bring along a comprehensive authorization letter.
The letter must include the following essential details:
- Your full name, signature, and NRIC number/ FIN
- Your original NRIC, or a scanned copy of your passport
- Your representative’s full name
- Your representative’s original NRIC number
- A description of the documents needed (the NOA)
Most importantly, your representative should always carry his/ her original NRIC during this process.
To wrap up
Understanding the Notice of Assessment is essential for conducting business in Singapore. Through this guide, we have explored the main components, types of NOAs, and options for efficiently managing your tax-related documents.
Armed with this knowledge, you can now confidently navigate your tax obligations. But remember, staying informed and proactive is key to maintaining a strong financial foundation for your Singapore business.
For more advice on doing business in Singapore, feel free to get in touch with us via service@bbcincorp.com. We are ready to offer help.
Frequently Asked Questions
Why is the Notice of Assessment important to your Singapore business?
The Notice of Assessment provides a comprehensive summary of the tax assessment for a specific year, with valuable insights into the company’s financial obligations.
It offers financial clarity, ensures compliance with tax regulations, and aids in financial budgeting. Thus, this serves as a foundation for effective communication with the tax authorities (particularly the IRAS).
Can you file an objection to the NOA your business receives?
Yes, you can state your concerns about the NOA to the authority.
Anyone disagreeing with the assessment (Type 2 or 4) must submit a Notice of Objection via mytax.iras.gov.sg. This assessment will remain final if your business fails to file an objection within the allowed period.
What is the deadline to file a Notice of Objection?
After the NOA is issued, you have 2 months to file an objection notice. The NOA becomes final if your company fails to file your objections within this period.
The Notice of Objection can be submitted via myTaxPortal, the Objection Form (available on IRAS’s website), or through an email/ letter.
In the case of states and trusts created under the wills of deceased persons/ intestate estates, you have only 30 days to submit your objection.
The IRAS will review and announce the results in writing within 6 months from the receiving date. You will then have 3 months to reply to the NOA.
What payment options do you have to pay taxes stated in the NOA?
Businesses are able to make payments via GIRO, electronic payment (online banking or phone banking), checks, NETS, cashier’s checks, or telegraphic transfers.
Taxes must be paid no later than 1 month after the NOA issuance date, regardless of whether the company files its objection or not. Late payments are subject to a penalty of approximately 5% of the amount owned.
Disclaimer: While BBCIncorp strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact BBCIncorp’s customer services for advice on your specific cases.
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