Introduction

This is to show how to declare a contractual bonus paid in 2020 as 2019's income.

NOTE: The year used in this article is for example purposes only, however, the guide is applicable for any year.

Steps

Step 1: Log in to the account

Step 2: Click on 

Step 3: Click on 

Step 4: Click on  tab at the top

Step 5: Click on  

Step 6: Look for the Bonus Pay Element from the list and click on the "eye" icon to go into the details.

Step 7: You will see this page. Put a tick in the checkbox to the right of the Tax Code.

Note: When it is checked, the pay element amount will be added to last year’s income tax declaration.

Example Scenario:

The employee is given a contractual bonus (e.g. AWS) for the services rendered in 2019, this bonus is paid in Feb 2020.

According to IRAS, this contractual bonus will be taxable in YA2020 (to be declared as 2019’s income) because the bonus was paid for employee’s services in 2019. Refer to link below: 

https://www.iras.gov.sg/irashome/Individuals/Locals/Working-Out-Your-Taxes/What-is-Taxable-What-is-Not/Employment-Income--Salary--Bonus--Director-s-Fees--Commission--etc--/

Example, this employee was paid with contractual bonus and below is the Payroll Yearly report (report #14) generated:

1) $2000 in Jan 2019

2) $3000 in Feb 2020

When we generate his YA2020 IR8A (to declare 2019’s income), only the bonus paid in Feb 2020 will be reflected as the $2000 bonus paid in Jan 2019 was assumed already declared in YA2019.

Please also note that the system will remain to declare employee’s CPF as per taxation year (based on the year 2019 for YA2020).