Updates to COVID-19 tax and Central Provident Fund (CPF) support measures for individuals and employers for Year of Assessment (YA) 2022.
Since the onset of the COVID-19 pandemic last year, the Inland Revenue Authority of Singapore (IRAS) and CPF Board have announced several COVID-19 support measures in 2020 to support employers and their impacted workforce.
With Singapore embarking on the endemic COVID-19 road map, companies have displayed resilience in rapidly adapting their business strategies to address challenges and opportunities in a post-pandemic future. In response, the IRAS and CPF Board have reviewed their support measures in 2021 and reduced the extent of support measures offered following the gradual reopening of borders.
In summary, depending on the period in 2021, there are additional qualifying conditions to be met and/or submissions to be made to the authorities for the tax and CPF support measures to continue to apply for Singaporean and Singapore Permanent Resident (SPR) employees working remotely in Singapore for overseas employers. The 60-day tax exemption on income attributable to the extended work period of foreigner employees who had completed their Singapore assignment but were stranded in Singapore has also lapsed on 1 January 2021. Lastly, the tax exemption of up to S$75 and S$50 on benefits (such as accommodation, food, transport, and daily necessities) provided to employees whose work have been impacted by the COVID-19 pandemic has lapsed on 1 January 2021.
Employers will need to note these changes in the upcoming filing of the Form IR8A (Return of Employee’s Remuneration) for the calendar year 2021, which is due on 1 March 2022.
