To ease cash flow pressures for companies and self-employed persons, the government will be allowing them to defer their income tax payments by three months past their due dates.
This was announced as part of the Resilience Budget announced by Deputy Prime Minister and Finance Minister Heng Swee Keat on Thursday (Mar. 26) in Parliament.
The Resilience Budget aims to help beleaguered companies and individuals affected by the Covid-19 economic slump, which Heng called Singapore's "worst economic contraction since independence".
Companies with Corporate Income Tax payment due in April, May, and June 2020 will have the payments deferred to July, August, and September 2020.
This is on top of the corporate income tax benefits (interest-free instalments and income tax rebates) given out during the Unity Budget in February.
Self-employed persons who have their personal income tax payments due in May, June, and July 2020 will have them deferred to August, September, and October 2020.
There is no need for companies or self-employed persons to make any application. The Inland Revenue Authority of Singapore (IRAS) will not make any GIRO deductions during the months that income tax payments are deferred.
Other employees who need help with their income tax payments may approach IRAS for deferment of their tax payments.
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