INCOME TAX GIRO PROMOTION FREQUENTLY ASKED QUESTIONS

Transcription

1 INCOME TAX GIRO PROMOTION FREQUENTLY ASKED QUESTIONS SECTION A FEATURES 1. What is Income Tax GIRO promotion? Income Tax GIRO promotion entitles you to a rebate of up to 1.68% on your income tax for 12 months when you pay your income tax by monthly GIRO from a SaveUp Account. 2. What are the benefits of Income Tax GIRO promotion? You can enjoy a rebate on your monthly income tax payment depending on the balance you maintain in the eligible SaveUp Account. To enjoy a rebate of 0.88%, a minimum average daily balance of 12 times the income tax paid that month or S$3,000, whichever is higher, is required. For a rebate of 1.68%, a minimum average daily balance of 24 times the income tax paid that month or S$3,000, whichever is higher, is required. Minimum balance^ in SaveUp Account 12x income tax paid that month 24x income tax paid that month Monthly rebate 0.88% of monthly income tax amount 1.68% of monthly income tax amount ^ Minimum balance is calculated as the average daily balance at the end of each month. Subject to a minimum of S$3,000. As GIRO deductions will reduce the balance in your SaveUp Account, please top up your account periodically to ensure that your account maintains an average daily balance of 12 or 24 times the monthly income tax amount in order to enjoy the rebate. Example 1: Customer with monthly tax amount of S$300 with an account balance of S$3,600 at the start of the month will not qualify for rebate. 1 July 07 SaveUp A/c Balance: S$3, July 07 Average daily balance of account is S$3,348, which is less than 12x S$300 (S$3,600). 6 July 07 Deduction of Income Tax of S$300 by GIRO A/c balance: S$3,300 1 Aug 07 No rebate paid. 1

2 Example 2: Customer with monthly tax amount of S$300 with an account balance of S$4,800 at the start of the month will qualify for 0.88% rebate. 1 July 07 SaveUp A/c Balance: S$4, July 07 Average daily balance of account is S$4,548, which is more than 12 x S$300 (S$3,600) but less than 24 x S$300 (S$7,200). 6 July 07 Deduction of Income Tax of S$300 by GIRO A/c balance: S$4,500 1 Aug 07 Rebate of 0.88% on S$300 = S$2.64 paid. Example 3: Customer with monthly tax amount of S$300 with an account balance of S$8,800 at the start of the month will qualify for 1.68% rebate. 1 July 07 SaveUp A/c Balance: S$8, July 07 Average daily balance of account is S$8,548, which is more than 24 x S$300 (S$7,200) 6 July 07 Deduction of Income Tax of S$300 by GIRO A/c balance: S$8,500 1 Aug 07 Rebate of 1.68% on S$300 = S$5.04 paid. 3. When will the rebate be paid into the SaveUp Account? The rebate is paid on a monthly basis. The rebate will be paid to eligible SaveUp Accounts on the first day of the following month from the payment of income tax by monthly GIRO from the account. 4. When will the rebate payment start? The rebate payment will start from the first successful deduction of income tax by monthly GIRO from the SaveUp Account within the promotion period. 5. For how long will the rebate be paid into the eligible SaveUp Account? The rebate will be paid for a period of 12 calendar months from the first successful deduction of income tax by monthly GIRO or until the income tax payment or GIRO arrangement ends, whichever is earlier. The rebate payments will end after 12 calendar months regardless of the number of times rebate had been successfully paid during the year. 2

3 6. What happens after the last rebate payment? The account will be automatically converted to a normal SaveUp Account without rebate payments. Your GIRO arrangement with IRAS will remain intact until you initiate a termination (please see Q26 for termination procedure). Each customer may only apply for Income Tax Giro promotion once. 7. Will I earn interest on the deposit balance in the SaveUp Account? You will continue to earn interest on the deposit balance in the SaveUp Account. Interest is calculated on a daily basis and credited at the end of each month. Interest rates for SaveUp Account are: First S$3,000: 0.250% p.a. Next S$47,000: 0.375% p.a. Above S$50,000: 0.500% p.a. Interest rates are subject to change. For the latest rates, please refer to our website or visit any of our 22 Branches. 8. Will I enjoy the rebate if the minimum balance required is not maintained in the SaveUp Account? The rebate will not be paid for that month if the minimum balance required is not maintained. You can start enjoying the rebates for subsequent months if you maintain the minimum balance required, subject to time limit explained in Q5. 9. Will I be paid the rebate if the GIRO deduction of income tax is not successful? The rebate will not be paid for that month if the GIRO deduction of income tax is not successful. Please refer to Q25 for deduction dates. Once deduction of income tax resumes, the rebate will be automatically paid into the SaveUp Account, subject to time limit explained in Q5. Example: If GIRO deduction of S$300 monthly tax amount is unsuccessful on 6 July 07 and 20 July 07, there will not be any rebate payment on 1 August 07. Inland Revenue Authority of Singapore (IRAS) will deduct 2 months of tax amount (ie. S$600) on 6 August 07. You would need to maintain a minimum average daily balance S$7,200 (12xS$600) or S$14,400 (24xS$600) in August 07 in order to receive a rebate of 0.88% or 1.68% respectively on 1 September 07. The minimum average daily balance required will revert to S$3,600 (12xS$300) and S$7,200 (24xS$300) when normal monthly tax deduction of S$300 resumes on 6 September Will I receive the rebate if my SaveUp Account is closed? The rebate will not be paid if the eligible SaveUp Account is closed before rebate payment on the first day of the following month after income tax payment. 11. Do I qualify for this rebate scheme if I opt to pay Income Tax in one lump sum instead of through monthly GIRO? Payment through monthly GIRO is required to enjoy the rebate. 3

4 12. Do I enjoy any tax rebate on the balance tax amount if I decide to pay the balance before expiry of the 12 months instalment period? If the balance amount is deducted through GIRO, then a corresponding minimum average daily balance of 12 times or 24 times of this tax amount will need to be maintained, subject to a minimum of S$3,000, in the SaveUp Account in the month of payment. 13. If I maintain a minimum balance insufficient to enjoy the 1.68% rebate, do I qualify for the lower 0.88% rebate? A minimum average daily balance of 12 times the income tax paid that month or S$3,000, whichever is higher, is required to enjoy the rebate of 0.88%. SECTION B SIGNUP AND ACCOUNT OPENING 14. How can I sign up for Income Tax GIRO promotion? You can visit any of our 22 Branches in Singapore with your latest Income Tax Notice of Assessment to sign up for the promotion. You cannot sign up for the promotion over the internet or by mail. 15. What are the documents required for signing up for the Income Tax GIRO promotion? To sign up for the Income Tax GIRO promotion, you would require your latest Income Tax Notice of Assessment. You would also require your NRIC or passport for opening of SaveUp Account. Please bring your Employment Pass if you are a non-resident. 16. Can the SaveUp Account opened under Income Tax GIRO promotion be a joint account? The SaveUp Account can be operated as a joint account. If there is more than one income tax payment made from the SaveUp Account, the minimum balances required would be 12 times or 24 times the total income tax amount paid through GIRO from the SaveUp Account. Please refer to Q27 for more details. 17. Can I produce my previous year s Income Tax Notice of Assessment to apply for the tax rebate scheme? You can produce your previous year s Income Tax Notice of Assessment if you have not received the Notice of Assessment this year. Please note that the rebates will be based on the current income tax amount paid every month and not on previous year s Income Tax Amount. 18. I already have an existing GIRO arrangement with another Bank for payment of Income Tax. Can I enjoy the rebate? You can enjoy the rebate when you make your income tax payments by monthly GIRO from Maybank SaveUp Account. Please visit any of our 22 Branches with your latest Income Tax Notice of Assessment to sign up. 4

5 19. Is a SaveUp Account required to enjoy the Income Tax GIRO promotion? OR Can I enjoy the promotion with other savings accounts such as isavvy Savings Account or Passbook Savings Account? The rebate is not available with other savings accounts. A SaveUp Account must be opened to enjoy the Income Tax GIRO promotion. 20. I am an existing SaveUp accountholder. Will I qualify for the rebate if I submit an Income Tax GIRO form directly to IRAS without signing up for this promotion at your branch? To qualify for the rebate, you need to sign up for the Income Tax GIRO promotion with your latest Income Tax Notice of Assessment at any of our 22 Branches in Singapore. 21. I am an existing SaveUp accountholder. Do I have to maintain another SaveUp Account to enjoy the rebate? No, there is no need to open another SaveUp Account to enjoy the rebate as we can convert your existing SaveUp Account to enjoy this Income Tax GIRO promotion. 22. Are there additional charges for this Income Tax GIRO promotion? No, there are no additional charges for this promotion. The usual fees and charges for SaveUp Account and outward returned GIRO due to insufficient funds apply. Please refer to our website for details. SECTION C GIRO SETUP 23. I have made a GIRO application for payment of income tax. How do I know if my application has been approved? The GIRO application will take about one month to be processed by IRAS. If you have outstanding tax to be paid, you will receive a payment plan from IRAS once your GIRO application is approved. If you do not receive any notification, please contact IRAS on the status of your GIRO application. 24. I am already on a GIRO payment plan for Income Tax through another bank s account. Can I sign up for this promotion? Yes, you can enjoy the rebate when you pay your Income Tax via monthly GIRO from Maybank SaveUp Account. You will need to continue making payment through your existing bank till IRAS informs you of the new GIRO payment arrangement from your SaveUp Account. Subsequently, you can inform the existing bank to terminate the current arrangement. 25. On which dates will income tax be deducted from my SaveUp Account? For all taxpayers on GIRO, the deduction date for income tax is the 6 th of every month. If the deduction on the 6 th is not successful, the tax amount will be deducted on the 20 th of the same month. If the deduction on the 20 th fails, the amount will be carried forward to be deducted together with the following month s instalment. The instalment plan will be cancelled if both deductions for two consecutive months are not successful. 5

6 26. How do I terminate my GIRO arrangement for Income Tax payment through SaveUp Account? You can inform us or contact IRAS to terminate the GIRO arrangement for Income Tax payment through SaveUp Account. SECTION D OTHERS 27. Can I enjoy rebate on more than one income tax payment from the same SaveUp Account? You can enjoy rebate on more than one income tax payment from the same SaveUp Account. However, do note that the minimum balances required in this case would be 12 times or 24 times the total income tax amount paid through the account to qualify for the rebate. Please note that the rebate will be paid for a period of 12 months from the first successful deduction of income tax by monthly GIRO from the eligible SaveUp Account. For e.g. Customer1 and Customer2 open a joint SaveUp Account under the Income Tax GIRO promotion on 1 June Customer1 submits a GIRO application form on 10 June 2007 for his income tax deductions via GIRO. First deduction of income tax for Customer1 takes place on 6 July The first rebate will be paid out on 1 August 2007 and the last rebate will be paid on 1 July If Customer2 submits a GIRO application form on 10 December 2007 and if first deduction of income tax for Customer2 takes place on 6 January 2008, the last rebate paid into their joint SaveUp Account will be on 1 July 2008, which is the same last payment date as Customer Can I open a SaveUp Account to enjoy the rebate using my spouse s / another individual s Income Tax Notice of Assessment? No, it has to be your own Income Tax Notice of Assessment. A third party s Notice of Assessment is not acceptable. 29. When I receive the next Income Tax Notice of Assessment, do I need to re-submit this Notice of Assessment to Maybank to continue enjoying the rebates? Or What happens if my monthly income tax amount changes? Do I need to re-submit any documents? You will be eligible for the rebates for 12 months without having to re-submit any documents. You only need to submit your Income Tax Notice of Assessment once when you open the SaveUp Account under the Income Tax GIRO promotion. If your monthly income tax amount changes, you may need to top-up the SaveUp Account balance based on the revised monthly income tax amount. 30. I am currently paying Income Tax based on provisional tax. Can I enjoy the rebates? You can enjoy the rebates on any income tax payment made by monthly GIRO, including provisional payment. If you are making provisional payments of income tax, you may need to top-up the SaveUp Account balance based on revised monthly tax payments when IRAS sends you a payment plan for actual tax assessed for the year. 6

7 31. I am currently the administrator for the estate of an individual. Can I open the SaveUp Account under the Income Tax GIRO promotion for the estate? SaveUp Account under Income Tax GIRO promotion is not available for estates. You can choose to open a Passbook Savings Account to manage the estate s banking needs. 32. Is the SaveUp Account under Income Tax GIRO promotion covered under Deposit Insurance? Yes, SaveUp Account deposits placed by an individual will be insured pursuant to the terms of the Deposit Insurance Act 2005 and up to the amounts provided for the Act. 33. I have signed up to the Income Tax GIRO promotion previously and enjoyed the monthly rebates for 12 months. Am I still eligible to extend for another 12 months of monthly rebates? This Income Tax Giro promotion is only applicable to new customers who have not signed up to this promotion before. If you have signed up to this promotion previously, you will not be entitled to the extension of another 12 months of monthly rebates. Singapore dollar deposits placed by an individual (excluding sole proprietorships and partnerships), charity or such persons prescribed in the Deposit Insurance Act 2005 (the Act ) with the Bank will be insured according to the terms and up to the amounts provided for in the Act. Information (including interest rates and charges) is subject to change and is correct at time of print. Updated on 16 March