What are the penalties?
You are required to pay taxes by the due dates given. If you are late in payment, the following penalties will be imposed:
- 5% penalty
- 1% additional penalty
5% penalty
You are given 1 month from the date of your Notice of Assessment to make full payment or payment arrangements. If you do not make full payment or payment arrangements by the due date, a 5% penalty will be imposed on the amount of tax payable. A Demand Note will be issued to you for the unpaid tax and penalty.
Example:
Assuming the date on the Notice of Assessment is 31 May 2009 and the tax payable is $3,000. If we do not receive any payment by 1 Jul 2009, a late payment penalty of $150 (i.e. 5% x $3,000) will be imposed.
| Notice of Assessment Date |
Notice of Assessment Due Date |
Payment Date |
Tax amount |
5% Late Payment Penalty |
| 31 May 2009 |
30 Jun 2009 |
03 Jul 2009 |
$3,000 |
$150 |
1% additional penalty
The additional 1% penalty will be imposed if the amount of tax outstanding is not paid within 60 days of the imposition of the 5% penalty. It shall be imposed on the amount of tax outstanding and shall be payable for each completed month that the tax remains unpaid. The total additional penalty shall not exceed 12% of the amount of tax outstanding.
Example:
Assuming the date on the Demand note is 31 May 2009 and the tax payable is $3,000.
If we do not receive any payment by 1 Aug 2009, the 1% additional penalty of $30 (i.e. 1% x $3,000) will be imposed.
This penalty shall be imposed up to a maximum of 12 completed months that the tax remains unpaid. Therefore, the maximum additional penalty that can be imposed will be $360 (i.e. $30 x 12months).
| Demand Note Date |
Demand Note Due Date |
Payment Date |
Tax amount |
5%Late Payment Penalty |
1%Late Payment Penalty |
| 31May 2009 |
30 Jun 2009 |
03 Aug 2009 |
$3,000 |
$150 |
$30 |
Actions that can be taken to recover the tax outstanding from your bank, tenant and other third parties…
If you do not pay by the due date stated in the Demand Note, other enforcement actions will be taken to recover the outstanding amount. These may include:
- Instructing your bank, tenant or any third parties to pay to the Comptroller if they hold money for you, or due to you.This includes informing the Ministries and the Statutory Boards, whom you have contracted to supply goods and/or services, when you are entitled to receive government payouts and grants, or whom you have deposits with under any scheme, to pay towards the outstanding tax, if they hold moneys for you or due to you.
- Issuing a direction to your employer to deduct your outstanding tax from your salary.
- Issuing a direction to prevent you from leaving Singapore.
- Instituting legal proceedings against you to recover the outstanding tax.
FAQs
Even though you are objecting to the assessment, you have to arrange to pay or pay the tax within one month from the date of your Notice of Assessment.
If you have difficulties in paying your taxes, do contact us before the tax is overdue. We will consider your financial situation and discuss the best option for you to pay your tax.
Any enforcement action taken against you will be released only when full payment is received. Please call us on 6356 7012 when you made payment on your own so that the enforcement action can be released. If your bank has been appointed as your agent, please note that banks do not process to release the appointment on Saturdays, Sundays and Public Holidays. Hence, you should contact us during weekdays(Mon-Fri), 8am-5pm.
Log into the above myTax Portal link using your SingPass or Iras Pin to view the position of your Income and Property Tax.