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Home » Tax Services For Singapore Companies » Understanding Notice of Assessment (NOA)

Understanding Notice of Assessment (NOA)

Common NOA-related questions we received

What is a Notice of Assessment?
What are the four types of NOA?
What are the methods to make a tax payment to IRAS?

What is the deadline to file a Notice of Objection to IRAS?
What is the statutory time limit for IRAS to issue additional assessments?

 

What is a Notice of Assessment (NOA)?

IRAS Notice of Assessment Singapore | NOA Advice | Tax AdvisorsNOA is a tax form sent to taxpayers after IRAS processed the tax returns. For overpaid tax payment (based on ECI), IRAS will refund and for underpayment, the company will need to pay for the shortfall.

1. IRAS sends NOA to companies via post or businesses can view NOA via mytax.iras.gov.sg. If the company disagrees with the NOA, you are advised to inform IRAS of your disagreement within two (2) months.

2. The company has the option to file a formal objection for disagreement with IRAS assessment. As long as the company does all these within ninety (90) days of receipt of the NOA, this will be dealt with accordingly. The company has thirty (30) days to file a Notice of Objection and should include the grounds and specific details as to why you object.

3. After the company filed the Income Tax Returns, tt takes IRAS three (3) months to send a NOA. The NOA will dictate the amount of tax payable. Upon agreement of NOA, the company has to make payment within forty-five (45) days.

4. The grace period is given to review NOA – to send payment (upon agreement) or file for objection (upon disagreement). Results of objection, even if it is favourable to the taxpayer, the tax amount has to be paid regardless of the ground of objection. If the objection is successful, excess tax paid will be refunded back to the company.

For accounting purposes, the taxpayer must keep a hard copy of the NOA in their file.

 

What are the four types of NOA?

Type 1

A NOA is issued once the Estimated Chargeable Income (ECI) is filed. Do note that no NOA will be issued when a NIL ECI is filed. There is no need to object to this NOA.

Type 2

A NOA is issued if:
– the company did not file an ECI by three (3) months after the end of the financial year;
– the company 
did not file Form C or Form C-S by the filing deadline;
– a lower ECI was declared; or
– 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 by two (2) months from the date of NOA.

Type 3

This NOA is an estimated tax assessment based on Form C or Form C-S filed. If the amount reported in Form C or Form C-S is higher or lower than the ECI, the ECI amount will be automatically adjusted. There is no need to object to this NOA.

Type 4

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

 

What are the methods to make a tax 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. 

From the date of NOA, the companies must pay their tax (as stated in the NOA) within one (1) month, even if the companies file a Notice of Objection.

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

Penalties are staggered and can be paid in several instalments, or the company's tax file remains "unpaid". The outstanding NOA overdue also has its due date which is different from the deadline of NOA.

 

What is the deadline to file an objection to NOA?

From the date of the NOA, companies must submit their objections within two (2) months. If the companies do not file their objections within two (2) months, the NOA will be treated as final.

For example, the date of the NOA is 13 May 2016. If the company does not agree with this NOA, 13 July 2016 is the last day to submit a Notice of Objection to IRAS.

There are three (3) 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?

The statutory period for IRAS to issue an additional assessment is four (4) years. This time, the limit does not apply to situations where fraudulent activities are involved.

For example, for Year of Assessment 2016 (i.e. covering the financial period from 1 January 2015 to 31 December 2016 or from 1 April 2014 to 31 March 2016), all companies must keep adequate accounting records up to 31 December 2020.

 

Where does the company obtain a copy of the NOA and other documents?

1. The company can view and print a copy of the NOA and other documents via mytax.iras.gov.sg. This service is free and convenient.

2. For hard copy collection at Revenue House (Taxpayer Services Centre), please make an e-appointment at least 2 working days in advance.

 

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