<TABLE cellSpacing=0 cellPadding=0 width="100%" border=0><TBODY><TR>12,000 opt to pay no tax for three months
</TR><!-- headline one : end --><TR>Deferment scheme frees up taxpayers' money for other pressing needs </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Leow Si Wan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->CLOSE to 12,000 taxpayers have taken advantage of a new scheme by the Inland Revenue Authority of Singapore (Iras) which allows them to defer income tax instalments for three months, from May to July this year.
The Defer Giro option, introduced in the 2009 Budget, is available to about 500,000 taxpayers who pay their income tax by monthly Giro deductions.
It is the first time Iras has offered a deferment scheme aimed at easing taxpayers' cash flow.
Those who sign up for the scheme will see their Giro deductions restart in August and end in April next year. But it also means their monthly payments will be higher when they are resumed.
Still, some taxpayers are opting for the deferment to have greater liquidity for three months.
For instance, high-income earners who have to pay larger monthly instalments would get substantial extra cash on hand which could go to other uses.
A fund manager in an asset management firm, who pays close to $30,000 in monthly taxes, welcomed the flexibility.
Said the 37-year-old: 'Given the current economic situation, this scheme would give me more leeway to manage my funds.
'There is no downside to the scheme and I will be able to use the money saved for timely investments in stocks and shares.'
He will have to pay about $38,000 per month when his payments resume.
Other taxpayers, such as Mr Chia Jin Tai, 26, managing director of SoccerPunter Pte Ltd, felt that the scheme would 'offer temporary relief while the economy recovers'.
Mr Chia, who pays about $500 in tax every month, added that he could allocate the money saved to daily necessities.
'Hopefully, the economic situation will improve after three months,' he said.
If there is a quibble, it is that the deferment is too short, said some taxpayers.
Ms Agnes Tan, 27, an engineer, said: 'Those who are retrenched or who face severe financial difficulties might find three months insufficient.
'It would be ideal if monthly instalments could be deferred for more than three months or if the amount deferred could be paid over a longer period of time.'
A 60-year-old supervisor who pays about $150 in tax each month agreed with Ms Tan.
He said: 'Times are hard and we are struggling to pay bills. Being able to defer payment for three months is helpful but I am worried about what happens after that.
'I hope that payments can be deferred for up to a year.'
An Iras spokesman said that taxpayers who have lost their jobs any time last year or this year can approach the tax authority to discuss their income tax payment plans and spread their payments over a longer period of up to 24 months.
From now until March 15, taxpayers can sign up for the Defer Giro option at www.iras.gov.sg/defergiro
Taxpayers who are not on the Giro instalment scheme but want to sign up for this deferment option must first apply to pay by Giro. [email protected]
</TR><!-- headline one : end --><TR>Deferment scheme frees up taxpayers' money for other pressing needs </TR><!-- Author --><TR><TD class="padlrt8 georgia11 darkgrey bold" colSpan=2>By Leow Si Wan
</TD></TR><!-- show image if available --></TBODY></TABLE>
<!-- START OF : div id="storytext"--><!-- more than 4 paragraphs -->CLOSE to 12,000 taxpayers have taken advantage of a new scheme by the Inland Revenue Authority of Singapore (Iras) which allows them to defer income tax instalments for three months, from May to July this year.
The Defer Giro option, introduced in the 2009 Budget, is available to about 500,000 taxpayers who pay their income tax by monthly Giro deductions.
It is the first time Iras has offered a deferment scheme aimed at easing taxpayers' cash flow.
Those who sign up for the scheme will see their Giro deductions restart in August and end in April next year. But it also means their monthly payments will be higher when they are resumed.
Still, some taxpayers are opting for the deferment to have greater liquidity for three months.
For instance, high-income earners who have to pay larger monthly instalments would get substantial extra cash on hand which could go to other uses.
A fund manager in an asset management firm, who pays close to $30,000 in monthly taxes, welcomed the flexibility.
Said the 37-year-old: 'Given the current economic situation, this scheme would give me more leeway to manage my funds.
'There is no downside to the scheme and I will be able to use the money saved for timely investments in stocks and shares.'
He will have to pay about $38,000 per month when his payments resume.
Other taxpayers, such as Mr Chia Jin Tai, 26, managing director of SoccerPunter Pte Ltd, felt that the scheme would 'offer temporary relief while the economy recovers'.
Mr Chia, who pays about $500 in tax every month, added that he could allocate the money saved to daily necessities.
'Hopefully, the economic situation will improve after three months,' he said.
If there is a quibble, it is that the deferment is too short, said some taxpayers.
Ms Agnes Tan, 27, an engineer, said: 'Those who are retrenched or who face severe financial difficulties might find three months insufficient.
'It would be ideal if monthly instalments could be deferred for more than three months or if the amount deferred could be paid over a longer period of time.'
A 60-year-old supervisor who pays about $150 in tax each month agreed with Ms Tan.
He said: 'Times are hard and we are struggling to pay bills. Being able to defer payment for three months is helpful but I am worried about what happens after that.
'I hope that payments can be deferred for up to a year.'
An Iras spokesman said that taxpayers who have lost their jobs any time last year or this year can approach the tax authority to discuss their income tax payment plans and spread their payments over a longer period of up to 24 months.
From now until March 15, taxpayers can sign up for the Defer Giro option at www.iras.gov.sg/defergiro
Taxpayers who are not on the Giro instalment scheme but want to sign up for this deferment option must first apply to pay by Giro. [email protected]
