For BUSINESSES and Self Employed
Income tax payment deferments announced to help with cash flow
April 14, 2020
During this time of uncertainty, having sufficient cash flow is vital. On top of wage support schemes announced previously, it was announced in the Resilience Budget on 26 Mar 2020 that the Government is deferring income tax payments for businesses and self-employed individuals by up to three months.
All companies with corporate income tax payments due in April, May and June will have them deferred automatically for three months. Payments will be collected from July. This move is in addition to the 25 per cent tax rebate, capped at $15,000, for Year of Assessment 2020 that was announced last month in Budget 2020.
- All companies with Corporate Income Tax (CIT) payments due in the months of Apr, May and Jun 2020 will be granted an automatic three-month deferment of these payments.
- The CIT payments that are deferred from Apr, May and Jun 2020 will be collected in Jul, Aug and Sep 2020 respectively.
- The deferment applies to CIT payments due in the months of Apr, May and Jun 2020, regardless of which YA the taxes or payments relate to.
- This relief measure complements the automatic extension of two months interest-free instalments as announced in Budget 2020 on 18 Feb 2020.
- Eligible companies can expect to receive a letter from IRAS by 15 Apr 2020.
- Companies who are on GIRO will be able to view their revised instalment plans at myTax Portal from 1 May 2020.
- Companies that are not on GIRO and are required to make a one-time CIT payment in Apr/May/Jun 2020 can use the Corporate Tax Payment Deferment Calculator to view the revised payment due date.
Individuals who are self-employed will also get a three-month deferral on personal income tax payments. All freelancers, who have to file their personal income tax returns for Year of Assessment 2020 by April 18, will be given an automatic deferral of payments due between May and July.
Refer to IRAS website for more details:
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