What is the Pre-Filing of Income Initiative?
The Pre-Filing of Income Initiative is designed to simplify tax filing for Private Hire Car (PHC) drivers. Under this initiative, income information provided by platform operators is pre-filled into your tax return. You only need to verify the accuracy of these details and make adjustments if necessary before submitting your return.
Am I eligible for the Pre-Filing of Income Initiative?
You are eligible if you are a registered Private Hire Car driver with income information reported to IRAS by the respective ride-hailing platforms. This initiative applies to drivers operating under PHC licenses issued by the Land Transport Authority (LTA).
How can I learn more about pre-filling of income for PHC drivers?
You can watch an educational video on pre-filling, which explains the process and its benefits. The video is part of a broader set of educational materials provided to help you understand your tax obligations.
- Access the video and materials here: [Link to educational materials]
- Visit the IRAS website for more details: [Link to IRAS resource on pre-filling]
How do I participate in the Pre-Filing of Income Initiative?
To participate:
a. Log in to myTax Portal using your Singpass.
b. Verify your pre-filled income details under the “Income” section.
c. Make amendments if needed.
d. Submit your tax return by the stipulated deadline.
What is the Fixed Expense Deduction Ratio (FEDR) scheme?
The FEDR scheme allows PHC drivers to claim a fixed deduction of 60% of their gross driving income for business expenses. This eliminates the need to maintain detailed records of expenses, simplifying tax filing.
Can I opt-out of the FEDR scheme?
Yes, you can choose to opt-out and claim actual allowable business expenses instead. However, this requires maintaining comprehensive records, including receipts and invoices, as evidence of the expenses incurred.
What types of income are included in the pre-filing?
Income derived from providing passenger transport services, such as fares and incentives, is included. Other income sources, like referral bonuses or platform-specific promotions, may also be pre-filled based on the information submitted by the platform operators.
Do I need to file an income tax return if my total income is below $22,000?
Yes, you must file an income tax return if:
a. You received a filing notification from IRAS.
b. Your annual gross income (inclusive of driving income) exceeds $6,000.
Can I claim additional business expenses under the FEDR scheme?
No, the FEDR scheme already accounts for standard expenses (e.g., fuel, maintenance, rental). Additional claims are not permitted under this scheme.
How do I benefit from the Pre-Filing of Income and FEDR schemes?
a. Simplifies tax filing and reduces errors.
b. Eliminates the need for detailed record-keeping.
c. Ensures compliance with tax regulations.
d. Facilitates self-employed individuals' access to government support schemes.
What should I do if the pre-filled income details are incorrect?
You should:
a. Contact the respective platform operator to verify the details.
b. Update the correct income amount in your tax return before submission.
How do I check the status of my tax filing?
After submitting your tax return, log in to myTax Portal to view the status under the “Notices” or “View Filing Status” sections.
Will tax filing procedures change with the inclusion of CPF contributions and if there an automated option.
There will be no changes to the current tax filing procedures. Look out for the in-app message towards the end of the year to opt-in for the IRAS pre-filling scheme.
Can I claim tax relief for my CPF contributions?
IRAS will take your CPF contributions into account for tax relief.
Where can I get more information?
For further assistance, visit the IRAS website or contact the IRAS helpline at 1800-356-8300.