Common Filing Mistakes For Income Tax

Make sure you file your income tax returns before April 15. Do not wait till the last moment.

Some Common Filing Mistakes
1. Declare all income. Winnings from Toto and 4D are not considered income as they are windfalls. I wonder whether this is true or not, but apparently for those who want to cheat on income tax buy winning tickets from people to claim the winnings, and then pay them the winnings, just so that the money becomes legitimate. When I bought oil and gas investments recently, I was asked to declare the money I was using to be free from money laundering. It seems that not just illegal businesses need to do money laundering. Tax evaders have to do that as well.
2. If you are a sole proprietor, it is better that you engage a professional accountant to do your taxes. For hawkers, you can refer to guides in 4 official languages. Remember they come down hard on tax evasion hawkers. Business income is taxable on the sole-proprietor’s name.
3. For rental of homes, do check out what you need to pay. An annual exemption of up to $150,000 is allowed to the NAV of one property, which is occupied by the owner. Any excess above $150,000 is taxable.
4. Royalties are taxable but if yours stem from A local publisher; or A branch in Singapore of a foreign publisher, you will only be taxed on 10% of the gross royalties received if they are received for any literary, dramatic, musical or artistic work.
5. If you are a Singaporean citizen or PR, your dividends from local shares need not be filed because the companies will automatically declare for you, unless you are joint account holders.