facebookIs it true that whatever you do for INCOME TAX Rebates and savings in 2020 are only applicable in 2021? - Seedly

Anonymous

25 Feb 2020

Saving Hacks

Is it true that whatever you do for INCOME TAX Rebates and savings in 2020 are only applicable in 2021?

If I were to make some donations now on some online portals, is it true that they will only apply to my assessable income for 2021?

Discussion (5)

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Elijah Lee

25 Feb 2020

Senior Financial Services Manager at Phillip Securities (Jurong East)

That is correct, and especially in the context of donations.

However it's not true if you were to say that 'whatever you do in 2020' will only be applicable for 2021 assessment. There is a very special class of Income Tax relief that can be deferred for a few years or even spread over a few years for the purposes of tax relief, and that is Course Fees relief.

A person can take a 3 years course now and spread the course fee over the next 3 years of tax relief.

He or she can also take a course in 2020, leading to a new job/employment/trade in 2022 for example, and then in 2022, claim back on the course fees that was paid in 2020.

Andy Sim

25 Feb 2020

HR Professional at a Financial Institution

Yep, IRAS will only assess your taxable income, deductions and reliefs in 2021,for the year 2020

Rais M

25 Feb 2020

Accountant at SME

Yes. That is right. You cannot exactly "backdate" such things. Same concept as whatever you earn thi...

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