DBS Bank and the Inland Revenue Authority of Singapore (IRAS) have joined hands to digitalise the tax payment and collection process in the country. DBS Bank will encourage its customers to use PayNow to pay taxes in a bid to make businesses in the country go cheque-free.
The Inland Revenue Authority of Singapore first introduced PayNow in March to allow businesses to receive Wage Credit Scheme (WCS) payouts. The move was a success as it led to a 20 percent reduction in cheque volumes. Prior to the introduction of PayNow, many businesses in Singapore especially the small and medium-sized enterprises preferred to receive their Wage Credit Scheme payout through cheques.
DBS Bank is also collaborating with the IRAS to digitalise its stamp duty services. Earlier, taxpayers would pay for the stamp duty by a cheque and wait for several days for the cheque to be cleared.
However, from November, taxpayers will be able to make stamp duty payments digitally and receive a stamp duty certificate almost instantly. This digitalisation initiative by DBS Bank and the IRAS will not only reduce the usage of cheques but also save time. Taxpayers will be able to transfer up to S$200,000 per transaction.
Raof Latiff, DBS’s group head of digital, Institutional Banking Group said in a statement that, “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 percent of businesses locally. Partnering 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.”