A Comprehensive guide to the Inland Revenue Authority of Singapore (IRAS)

Singapore is widely recognized for its highly-efficient and competitive tax system, which lets companies, partnership firms, sole proprietor and entrepreneurs (individuals) enjoy low tax rates and several types of tax relief. The Inland Revenue Authority of Singapore (IRAS) is the central tax administrator of the country. It falls under the Ministry of Finance’s authority and operates as a chief tax advisor to the Singaporean government. The IRAS is mainly in charge of collecting taxes. It collects taxes, which account for around 70% of the government’s operating revenue that supports the nation’s economic and social programs. These programs are aimed at achieving an inclusive society and quality growth. All in all, the two main functions of the IRAS is to collect all types of taxes and act as a tax advisor to the state.

As a part of its public engagement, IRAS works with tax agents as partners in administering the Singapore tax system and in facilitating tax compliance. As the main tax authority under the Ministry of Finance, IRAS plays a crucial role in tax policy creation by providing policy inputs in addition to the technical and administrative implications of each policy. IRAS also actively monitors developments in external economic and tax environment to spot areas for policy review and changes. It aims to create a competitive tax environment, which fosters the growth of enterprises in the nation. Other non-revenue operations carried out by IRAS include representing the state in tax treaty negotiations, offering advice on property valuation and drafting of tax legislation.