Name of the Organization : Inland Revenue Authority of Singapore
Type of Facility : Wage Credit Scheme
Country : Singapore
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IRAS Wage Credit Scheme
** Under the Scheme, the Government will co-fund 40% of wage increases given to Singapore Citizen employees earning a gross monthly wage of $4,000 and below in 2013 – 2015.
Related : Inland Revenue Authority of Singapore Productivity & Innovation Credit Scheme : www.statusin.org/24498.html
** Only Employers are eligible for the co-funding.
Qualifying Conditions :
Who qualifies for WCS :
All employers paying wage increases in 2013 – 2017 to Singaporean Singapore Citizen employees who:
** Are earning a gross monthly wage of $4,000 and below;
** Received CPF contributions from a single employer for at least 3 calendar months* in the preceding year1;
** Have been on the employer’s payroll for at least 3 calendar months* in the qualifying year2
** i.e. employer must have paid employee CPF contributions for at least three calendar months* in qualifying year; and
** Have at least $50 gross monthly wage increase.
** Must not also be the business owner of the same entity
** i.e. sole proprietor of the sole proprietorship, or a partner of the partnership, or both a shareholder and director of a company
Additional Eligibility Conditions :
** An employer is not eligible for a payout under any of the circumstances below :
** The employer is an entity that has no substantial trade or business;
** The employer had given, in IRAS’ opinion, false or misleading information to IRAS in order to obtain a payout or a higher amount of payout;
** The employer (either singly or with another person) had used, in IRAS’ opinion, one or more artificial, contrived or fraudulent steps in order to obtain a payout or a higher amount of payout;
** The employer was convicted in the qualifying or preceding year for making CPF contributions to Singaporeans who were not actively employed by the firm
An employer is not eligible for a payout for a wage increase for a particular employee who:
** Did not carry out any substantive work for the employer;
** Effectively controls the employer (i.e. controls decision making power and management of the business or company)
** If the total wages paid by an employer for a period is not commensurate with the volume or nature of activity carried out by the employer in that period, then the employer is only eligible for an amount of payout that, in IRAS’ opinion, corresponds to the increase in the total wages paid for that period that commensurate with such volume or nature of activity.
How much of wage increases qualify for co-funding
** Over the period of 2013-2015, the Government will co-fund 40% of qualifying wage increases up to a gross monthly wage level of $4,000.
** In addition, gross monthly wage increases of at least $50 – given in 2013 that is sustained in 2014/2015 by the same employer, and given in 2014 that is sustained in 2015 by the same employer; will continue to be co-funded at 40%.
Receiving Wage Credit :
** Application is not required. IRAS will notify eligible employers by post of the Wage Credit payable to them by 31 March 2014, 2015, 2016, 2017 and 2018.
When is the payout :
** Payouts will be given to employers by 31 March 2014, 2015, 2016, 2017 and 2018.
How do employers receive the payout :
** Payouts will automatically be credited to employers’ GIRO bank account for Income Tax/GST, or by cheque.
Submitting a Request for Wage Credit Breakdown :
How to submit a request :
** Employers may submit an online request via myTax Portal.
When to submit :
** Employers have from the last week of March till 31 October of the year of payout (2014, 2015, 2016, 2017 and 2018) to submit their request.
How much :
** Processing fees apply for qualifying employee records exceeding 100.
** $100 for records more than 100 but not exceeding 200
** $150 for records exceeding 200
How to pay :
** Payment is via cheque only, made payable to “Commissioner of Inland Revenue” and paid upon collection of the CD at IRAS.
How will employers receive the records :
** Employee records not exceeding 100 will be mailed to the business’s registered address by ordinary mail within 7 working days.
** Employee records exceeding 100 will be provided in a CD. IRAS will contact the employer for payment and collection of CD at IRAS within 10 working days.
Appealing for Wage Credit Adjustment
** In any payout year, employers can only appeal on Wage Credit payout for that year.
Appeals under the following situations may be considered based on the merits of the case:
** Merger of companies;
** Conversion of business entity, or change in UEN;
** Overseas Singaporean employees for whom CPF contributions were not made but whose salaries were nonetheless paid.