To align with the nation’s plan to digitalise payments, both IRAS and DBS are working together to digitalise tax payments and collections. SMEs are encouraged to use PayNow over cheque payment to increase convenience. In March 2019, IRAS had introduced PayNow as an option to allow SMEs to receive the Wage Credit Scheme (WCS) payouts other than cheque. There has been a 20% decrease in cheque request.
The SMEs form 99% of the local business and are expected to aid in the shift from cheque and cash payments.
Mr Raof Latiff, Group Head of Digital, Institutional Banking Group, DBS Bank said, “Acceptance of digital transactions among individuals in Singapore has been well established. To bring Singapore’s digital agenda to fruition, it is critical to encourage SMEs to get on board the digital payments train as they represent 99 per cent of businesses locally. Partnering with statutory boards like IRAS is one of the key ways to encourage this shift, with them leading the way by digitalising payments and collections channels across their suite of services.”
DBS continues to see traction in SME adopting the PayNow options. IRAS expects to include digital payments in more services, including stamp duty payments. By leveraging on DBS’s API, tax payers can set up GIRO account online and receive the Stamp duty certificate instantly once they have made the payment. This new initiative is expected to launch in November this year.
“Besides stamp duty payments, with cashless payments gaining momentum in Singapore, taxpayers are encouraged to use cashless or electronic payment modes such as GIRO and online banking to fulfil their other tax obligations,” said Ms Ang Sor Tjing, Director of IRAS’ Revenue and Payment Management Branch.
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