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Understanding IRAS Notice of Assessment (NOA) for Singapore Companies

Business Outsourcing Specialists in Singapore

Updates your contact information in myTax Portal to receive IRAS e-notices

Most IRAS notices have been digitized, decreasing the need for hard copy notices. You can access these e-notices at any time through the myTax Portal.

All taxpayers need to provide up-to-date contact information on the IRAS website or update the notification preferences within myTax Portal. This is to ensure you receive timely IRAS notifications for your company.

Log in using your SingPass or SingPass Foreign Account. Then select Account > Update Notice Preferences > Add one or many email addresses to all tax types > Save Preference > Download a copy of the acknowledgement.

What is a Notice of Assessment (NOA)?

IRAS issues an NOA to taxpayers after IRAS processed the tax returns. Overpaid tax payments (based on ECI) will be refunded by IRAS, and underpaid tax payments will have to be paid by the company.

1. IRAS informs the company via email that they can view the NOA via myTax Portal. If the company disagrees with the NOA, the company can inform IRAS of the disagreement within two months.

2. The company has the option to file an objection to IRAS assessment. The company should complete the above within 90 days of receipt of the NOA. The company has thirty days to file a Notice of Objection and should include the grounds and specific details as to why you object.

3. After the tax agent files the Income Tax Returns, it takes IRAS three months to send an NOA. The NOA will dictate the amount of tax payable. Upon agreement of NOA, the company must make payment within forty-five days.

4. IRAS provides the taxpayers a grace period to review NOA and make payment (upon agreement) or file for objection (upon disagreement).

Regardless of the outcome of an objection, even if it is favourable for the taxpayer, the company must pay the tax amount. Should the objection be successful, the excess tax paid will be refunded to the company. The taxpayer must retain a hard copy of the NOA for accounting purposes.

What are the 4 types of NOA?

Type 1

IRAS issues an NOA after the company files the Estimated Chargeable Income (ECI). However, do note that IRAS does not issue NOA when a NIL ECI is filed. Therefore, there is no need to object to this NOA.

Type 2

IRAS issues an NOA if:
(i) the company did not file an ECI by three months after the end of the financial year;
(ii) the company did not file Form C or Form C-S by the filing deadline;
(iii) a lower ECI was declared; or
(iv) IRAS takes its position to give an Advance Tax Assessment to the company.

If the company does not agree with the NOA, the company must file a Notice of Objection within two months from the date of NOA.

Type 3

This NOA is an estimated tax assessment, and this information is from Form C or Form C-S filed. If the tax amount in Form C or Form C-S is higher or lower than the ECI, IRAS will automatically adjust the ECI amount. Therefore, there is no need to object to this NOA.

Type 4

This NOA is the Final tax assessment issued by IRAS. Therefore, if the company wish to object to the final NOA, it should do so within two months from the date of the final NOA.

What are the methods to make payment to IRAS?

Payment options for paying NOA are through GIRO, electronic payment modes (online banking and phone banking), cash, NETS, cheque, cashier’s order, and telegraphic transfer. 

All companies must pay their tax within one month from the date of NOA, even if the companies file a Notice of Objection.

In cases where the company fails to make payment to IRAS (the amount payable stated in the NOA), IRAS will impose a penalty of approximate 5%.

The penalty is staggered and payable in several instalments. The tax file of the company remains “unpaid” as the penalty is not fully paid. The outstanding NOA that is overdue also has a due date, which is different from the deadline of the NOA.

What is the deadline to file an objection to NOA?

From the date of the NOA, companies must submit their objections within two months. If the companies do not file their objections within two months, the NOA is final.

For example, the date of the NOA is 1 July 2021. If the company does not agree with this NOA, you have up to 1 September 2021 to submit a Notice of Objection to IRAS.

There are three options to submit a Notice of Objection to IRAS via myTaxPortal, Objection Form (download from IRAS website) or email or letter (stating the reason for objections).

What is the statutory time limit for IRAS to issue additional assessments?

IRAS statutory time limit of four years applies to the raising of an assessment or additional assessment. However, these statutory time limits will not apply in cases of fraud.

For example, for the Year of Assessment 2020 (i.e. basis period from 1 January 2019 to 31 December 2019), all companies must keep adequate accounting records for 5 years up to 31 December 2024.

Where can we obtain a copy of the NOA?

(i) Tax bills are in MyTax Portal

You can access myTax Portal and download the tax bills for the current year of assessment and the last three (3) years.

Log in using your SingPass or SingPass Foreign Account. Then select Notices/Letters > Corporate Tax > View Notices > select each NOA and download a copy.

(ii) Tax bills are not in MyTax Portal

If tax bills are not available in myTax Portal, you can request a copy from the Taxpayer & Business Service Centre at IRAS Revenue House. You need to pay for the search fees (SGD 20 per search) and document fees (certified copy at SGD 3 per page and uncertified copy at SGD0.30 per page). Payment to IRAS by Internet Banking Fund Transfer to IRAS bank account.

If you intend to send a representative or a tax agent, they must bring the following documents:

(a) An authorization letter from the director of the company (“you” or “your”) (includes your full name, NRIC number, your signature, your representative’s full name and NRIC number, and a detailed description of the documents needed);

(b) Please provide your original NRIC. If this is not available, please provide a scanned copy of your passport; and

(c) Your representative must bring his or her original NRIC.

Have more questions on NOA?

Our tax team is available to assist you with NOA issues.

Please submit a tax inquiry so that we may better understand your concerns. Next, our tax advisor will contact you to assist with tax matters and provide the appropriate guidance.

 

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