Notice of Assessment (NOA) in Singapore: Everything You Need to Know

Understanding the notice of assessment in Singapore to fulfil your income tax obligations is crucial. An NOA is a formal document issued by the Inland Revenue Authority of Singapore (IRAS) that outlines the amount of tax you owe based on your submitted income tax returns.

Every taxpaying individual has to comply with the terms set in the notice of assessment, as it acts as the official tax bill. Hence, foreign investors setting up a business in Singapore should be aware of NOA.

This article provides a detailed account of the NOA, including the deadlines, how to read it, how to obtain it, and why it is essential for managing your tax bills.

Key Points

• The IRAS-issued income tax notice of assessment (NOA) is an essential document that gives Singapore taxpayers and companies a clear idea of how much tax they owe based on their income. It can be regarded as tax bills.
• Both individuals and companies can access their NOAs through the myTax Portal or a hardcopy form.
• You can contest tax disputes, like incorrect amounts in the tax bills through NOA. Hence, it is crucial that businesses in Singapore and individual taxpayers thoroughly understand the details given in the NOA to file taxes accurately, ensuring compliance with the law.

What is a Notice of Assessment (NOA)?

A notice of assessment (NOA) is a document prepared by IRAS that serves as the official tax bill for individuals and companies. This document details the company’s estimated chargeable income and the corresponding income taxes to be paid to the IRAS.

While individual taxpayers in Singapore receive their NOA after filing their personal income tax returns, companies in Singapore must file corporate tax returns to get it. The corporate tax returns underline the chargeable income and the corresponding income taxes of the company.

Types of NOA for Companies

When it comes to the notice of assessment in Singapore for businesses, the following 4 types of NOAs are issued by the IRAS. Each of them serves a specific purpose.

1. NOA Type 1: Issued after a company successfully files its estimated chargeable income (ECI) for the tax year in question.
2. NOA Type 2: Issued when a company fails to file its ECI within 3 months of the financial year-end. This type of NOA is also issued when a company misses the IRAS deadline for Form C and Form C-S submissions or declares a low estimated chargeable income. You can also get it in case of advance tax assessments.
3. NOA Type 3: Issued after a company successfully files its Form C or Form C-S.
4. NOA Type 4: This is the final notice of assessment issued after the IRAS has assessed a company’s chargeable income and the corresponding tax payable. Businesses disagreeing with the assessment have to file a formal objection within 2 months of the NOA’s issuance.

The Importance of a Notice of Assessment From IRAS

The NOA issued by the Inland Revenue Authority of Singapore is unlike any other tax bill, as it helps companies and individual taxpayers in financial planning and compliance. The notice of assessment in Singapore serves the following purposes:

1. Tax Liability Confirmation: The NOA is an official tax record that helps in budgeting and financial accounting as it confirms the amount of tax you or your company owe based on the reported income.
2. Legal Obligation: Receiving an NOA is not just a formality—it represents a legal obligation to pay the assessed tax by the due date. Failure to do so can result in penalties and interest charges.
3. Dispute Opportunity: The NOA also serves as a critical point for settling tax disputes. If you disagree with the assessed amount, the NOA gives you the right to file an objection within a specified period, 30 days for individuals and 2 months for companies. Reporting inaccuracies to the tax authorities is the duty and responsibility of the taxpayers.
4. Proof of Income for Financial Transactions: The NOA can be used as proof of income for various purposes, like applying for loans or visas. Also, many financial institutions and organisations in Singapore verify income using NOA.

How to Obtain a Copy of Your Notice of Assessment

IRAS issues NOAs in both digital and hardcopy formats, which can be obtained by following these steps:

• Log in to your myTax portal using your SingPass or IRAS PIN.
• Navigate to the “notices” section to view your NOA.
• Download and print a copy for your records.
• Request for a hard copy to be mailed to your registered address.
• Review the payment instructions mentioned in the NOA to understand the tax payment options, modes of payment, including Internet banking, and deadlines to avoid late payment penalties.

We have further underlined the steps to get a digital copy and a hard copy in the next subsection.

For Digital Copy Via myTax Portal

• Log in to the myTax portal using your SingPass ID or IRAS unique account (IUA) credentials.
• Go to the “notices” section and select “view individual tax notices” or “view corporate tax notices” as applicable.
• You can view, download, and print your NOA for the past 3 years

For Hardcopy

• Companies and individuals can receive hardcopy NOAs at their registered addresses. If you prefer a hard copy, then update your mailing address on the IRAS portal.

How to Read Your NOA

Foreign investors looking to set up business in Singapore must know how to read the NOA, as it provides detailed information about their taxable income and the tax they owe. This includes:

1. Assessable Income Amount: The total income reported before deducting any tax-deductible expenses.
2. Chargeable Income Amount: The income subjected to tax after eligible expense deductions are made.
3. Tax Payable: The tax amount is calculated based on the chargeable income.
4. Tax Repayable/Discharged Amount: The refundable amount when the final tax payable is less than the tax already paid.

Meanwhile, an individual taxpayer can read the NOA to understand the following:

1. Assessable Income: The total income from employment, investments, and other taxable sources, including rental income, can be assessed through NOA. If your employer participates in the Auto-inclusion scheme (AIS) for employment income, your employment income information will be submitted to IRAS and automatically pre-filled in your tax return without any manual filing from your end.
2. Personal Reliefs: Deductions are allowed based on personal circumstances like parenthood, course fees, and CPF contributions.
3. Chargeable Income: The income is subject to tax after deducting personal reliefs.
4. Tax Payable: The final tax amount is calculated based on the applicable personal income tax rates.

For property owners, the NOA can be used to claim rental expenses based on the percentage of gross rent. This means that the financial implications of your rental income are considered in the taxation process, allowing you to reduce your taxable income by claiming these expenses.
Moreover, you claim the property tax paid on rental properties as a deduction. This helps in managing the rental income and the tax obligations related to it.

Why is it Crucial to Understand the NOA?

Understanding your NOA is critical because it affects how you manage your tax obligations. Failing to accurately interpret this document can lead to overpaying or underpaying taxes, both of which have significant consequences. Overpayment results in reduced cash flow, while underpayment can lead to penalties, interest charges, and a late payment penalty of up to 5% of the unpaid tax amount if payments are not made within the specified deadline. Moreover, a thorough understanding of your NOA can help you identify potential errors in your tax assessment and take corrective action promptly.

How to File an Objection to Your Notice of Assessment

Every individual taxpayer and company should understand the notice of assessment to file objections in case of disagreement. If you find inaccuracies in the NOA, which is the official tax bill, you can object to it by following these steps:

1. Log in to myTax portal using your SingPass or IRAS unique account.
2. Access the ‘notices’ section and find the specific NOA you wish to dispute.
3. Click on ‘object’ and provide detailed reasons for your objection along with the supporting documents.
4. Submit your objection within the stipulated period (30 days for individuals and 2 months for companies).

Once you have filed the objection, IRAS will put it under review and ask for additional information if needed. If IRAS finds the objections valid, they will issue a revised NOA after the review is completed.

How Can InCorp Help?

Proper tax filing ensures accuracy in the NOA, which in turn affects tax refunds. Hence, understanding how to obtain, read, and respond to your NOA is critical for ensuring compliance and avoiding unnecessary penalties. Our team of certified and skilled tax experts and accountants at InCorp Asia can assist you, ensuring your right to settle tax disputes.

We can help you file an objection against the NOA within a specific period of its issuance. Our experts are updated on the NOA process and its importance. Hence, they can easily guide you on how to effectively manage your tax responsibilities in Singapore. Fill out the contact form given below to schedule an appointment with us!

About the Author

Mabel Ng

With over two decades of experience in direct and indirect taxation, Mabel has honed her expertise across a broad spectrum of environments, including the Big 4 accounting firms, mid-tier firms, and various industry roles. Her extensive background spans not only Singapore but also the wider Asia-Pacific region, reflecting a deep understanding of diverse tax landscapes and practices. She is also a member of the ISCA and FCCA, and is an SCTP Accredited Tax Practitioner.

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