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Choosing to Pay for Personal Income Tax in Singapore as There Are Many Options to Choose From
Thinking of how to pay personal income tax in Singapore? Taxpayers can choose to pay their personal income tax via GIRO bank account or electronic payment modes. Taxpayers also have the option to pay individual income tax using a credit card, though it is yet to be offered by IRAS.
Paying Personal Income Tax in Singapore – GIRO Leads the Way
Among the available payment methods, most taxpayers prefer using GIRO. It is a popular choice for the following reasons:-
- It is a cashless payment mode
- no queueing needed at payment kiosks
- no late payments
- opt for 12-month interest-free instalments or annual GIRO deductions
- receive faster tax refunds as refunds are credited directly into your bank account
If you opt to use GIRO for your tax payment method, you will have full control over it with IRAS’ e-services. These services include viewing your GIRO plan and tax balance by logging in to myTaxportal, or you can adjust or cancel your plan by calling in IRAS at 1800 356 8300. If you desire to change your GIRO bank account, submit a new GIRO application using your new bank account. Once approved, the GIRO will override the previous GIRO arrangement. This means only one GIRO bank account is allowed at any one time. If you do not have GIRO, you can easily apply at myTaxportal or through internet banking or even AXS stations for instant bank approval. You can also complete GIRO form in the Payment Slip sent with the Tax bill and submit to IRAS. Do allow three weeks to process and approve.
Electronic Payment Mode
Individuals who do not or have yet to have a GIRO bank account can pay their tax via electronic payment. This payment mode includes internet banking bill payment. Banks that offer such services are BOC, CIMB, DBS/POSB, HSBC, ICBC, Maybank, OCBC, RHB, Standard Chartered Bank, State Bank of India and UOB. Other options available for taxpayers to pay their taxes are as the following:
- AXS station including AXS e-station & AXS m-station (internet and mobile respectively),
- SAM payment network (kiosks, web or mobile),
- phone banking,
- DBS Paylah Mobile App,
- NETS which is only available over the counter at any Singapore Post Branch and;
- Internet Banking Fund transfer, meaning, taxpayer transfer the amount to IRAS bank account detail with the correct Tax Reference Number.
Credit-Convenient-Sard, Not Really
Credit or debit card has always been a saviour and a preferred payment method in almost every situation because of its convenience and wide acceptance. For tax payments, however, this is not the case. IRAS does not offer direct tax payments via credit card as credit card providers often charge high transaction cost. IRAS prefers to keep cost of collection low to preserve public funds. That said, abe tax payers wanting to pay tax can still do so using their Mastercard (credit or debit) via AXS stations, AXS e-station or AXS m-station. Better yet, check with your credit card issuing bank if they offer payment scheme to pay income tax via credit card.
Paying for personal income tax in Singapore has never been easier. With a wide range of payment methods, you only need to decide which suits you best and change any time you want.