As the financial year progresses, taxpayers are reminded to submit their tax returns by June 2. The Inland Revenue Department has issued a total of $2.66 million in tax forms for the assessment year 2024-25. Various groups have been granted extensions, including sole proprietors who enjoy an additional three months until August 2, and eTAX users receiving an extra month. Additionally, significant adjustments have been made to tax policies to support specific demographics and financial circumstances.

The Inland Revenue Commissioner, Benjamin Chan, announced that for the 2024-25 fiscal year, salaries tax, personal assessments, and profits tax will be reduced by 100%, capped at $1,500 per case. A new two-tiered standard rates regime now applies, with the first $5 million of net income taxed at 15% and any surplus taxed at 16%. Furthermore, taxpayers living with newborns born on or after October 25, 2023, can claim higher deductions for home loan interest or domestic rent, increasing from $100,000 to $120,000.

In another development, taxpayers may now apply for deductions related to assisted reproductive services, capped at $100,000. These changes reflect the department's commitment to supporting families and addressing evolving societal needs. Meanwhile, the department reported a revenue collection of $374.5 billion for 2024-25, marking a 10% increase year-on-year. For the upcoming year, 2025-26, revenues are projected to reach $401.4 billion, representing a 7% growth.

With these updates, the government aims to streamline the tax filing process while offering relief and incentives to taxpayers. By introducing enhanced deduction ceilings and expanding the scope of eligible expenses, authorities hope to provide meaningful support to individuals and businesses alike. As taxpayers navigate these changes, they are encouraged to review their financial situations carefully and take advantage of available benefits.