5. Under what circumstances can I apply for paying less tax, or for holding over (deferring payment) of Provisional Salaries Tax?

5. Under what circumstances can I apply for paying less tax, or for holding over (deferring payment) of Provisional Salaries Tax?

An application for holding over of Provisional Salaries Tax may be made on one of the following grounds: 

• You have become entitled to an allowance, which was not given in the notice for payment of Provisional Tax, for example:
  • You are getting married this financial year and your spouse does not have any income. You are entitled to a married person’s allowance;
  • Child allowance for your newborn baby; or
  • Dependent parent allowance for your parent who has attained the qualifying age in the year of assessment for which Provisional Tax was charged.
     
• Your net chargeable income for the year of assessment for which Provisional Tax was charged is, or is likely to be, less than 90% of the net chargeable income for the preceding year or of the estimated sum in respect of which you are liable to pay Provisional Tax.

• You have been assessed to pay Provisional Salaries Tax and have paid or are anticipated to pay self-education expenses, contributions to a recognized retirement scheme, residential care expenses, home loan interest, qualifying premiums under the Voluntary Health Insurance Scheme Policy, qualifying annuity premiums, tax deductible MPF voluntary contributions or domestic rents during the year of assessment; and the amounts exceed or are anticipated to exceed the specified amount for the year preceding the year of assessment for which Provisional Tax was charged.
   
• You have ceased or will before the end of the year of assessment for which Provisional Tax was charged cease, to derive income chargeable to Salaries Tax. You should state the estimated amount of income for the whole year of assessment in your application and give reason for the reduction of income such as unemployment, retirement and salary reduction.
   
• You have objected to your Salaries Tax assessment for the year preceding the year of assessment for which Provisional Tax was charged.

Your application must be made in writing and received not later than 28 days before the due date for payment of the Provisional Salaries Tax, or 14 days after the issue of the demand note concerned, whichever is the later.

If the Provisional Tax is payable by two instalments and the first instalment has been settled by the due date, an application for holding over of the whole or part of the second instalment may be made subject to the prescribed time limit and grounds for application.