The move is part of a digitalization drive by the Inland Revenue Authority of Singapore (IRAS) to encourage SMEs to go chequeless and transition towards digital payments.
DBS Bank is working with IRAS to digitalize tax payouts and collections using national peer-to-peer funds transfer service PayNow in a bid to encourage more businesses to go cheque-free, the bank announced in a press release on Tuesday.
Since the March introduction of PayNow as an option for businesses to receive Wage Credit Scheme payouts, IRAS has issued 20 percent fewer cheques, DBS noted in the statement.
It added that it is also working with IRAS to digitalize its stamp duty services using the bank's Direct Debit Authorisation (DDA) API, which will be launched in November. This would allow taxpayers to make stamp duty payments and receive a stamp duty certificate on IRAS' e-Stamping Portal instantly, avoiding the use of cheques and the waiting time before the issuance of stamp duty certificates.
«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 with statutory boards like IRAS is one of the key ways to encourage this shift, with them leading the way by digitalizing payments and collections channels across their suite of services,» Raof Latiff, DBS group head of Digital, Institutional Banking, said.
