What are the Payment Requirements and Penalties?
For annual Property Tax bills, taxpayers are required to pay by 31 Jan of each year. For ad-hoc bills due to new assessments or reassessments, taxpayers are given 30 days to settle the tax from the date of the bill. When no payment is received, a 5% penalty will be imposed on the outstanding tax.
A taxpayer whose GIRO instalment plan is cancelled will also have a 5% penalty imposed on the outstanding tax. The instalment plan may be cancelled due to insufficient funds in the bank account, or deduction amount is higher than the bank limit set by taxpayer, etc. In such instances, IRAS will send a letter to inform the taxpayer that the GIRO plan has been cancelled.
When the 5% penalty has been imposed, a Notice to Pay will be issued, showing the unpaid tax and penalty. Payment has to be made within 14 days.
Example:
Date of the Property Tax bill is 15 Dec 2012 (for year 2012 Property Tax) and the tax payable is $1,000.
The 5% penalty of $50 (i.e. 5% x $1,000) was imposed as the tax was still not paid by 31 Jan 2013.
| Date of Property Tax Bill |
Property Tax Due Date |
Tax Payable |
5% Penalty |
15 Dec 2012
|
31 Jan 2013
|
$1,000
|
$50
|
Why are there penalties?
Penalties are imposed to discourage late payment.
What should I do when I receive a Notice to Pay?
You should pay the tax and 5% penalty within 14 days from the date of bill. Otherwise, further enforcement actions may be taken.
Why am I penalised for not paying the tax when I object to the tax?
If you disagree with the tax assessment, you will have to pay the tax first as shown on the Property Tax bill by the payment due date. Meanwhile, please file in your objection via myTaxPortal with your Singpass > e-Services for Property Tax > File objections to Annual Value. IRAS will process your objection and where a refund/revised tax bill is due, we will inform you separately.
We would encourage you to pay by monthly GIRO instalments because when your objection is approved, your GIRO instalment amount will be adjusted. A new GIRO instalment plan would then be sent to you.
If you have signed up for GIRO payment after receiving a Notice to Pay
Please call (65) 6356 7012 to inform us so that we can withhold further enforcement actions.
What should I do when I have difficulties paying the tax and penalties?
Please call (65) 6356 7012 before the payment due date. We will discuss with you the best financial option. Documents such as bank statements and payslip may be required to substantiate your claims.
My GIRO instalment plan was cancelled and penalty has been imposed. What should I do?
You have to pay the tax and penalty in full by the due date of the Notice to Pay or we may take further enforcement actions.
If you wish to continue paying by GIRO instalments, please call (65) 6356 7012 to arrange. We will consider the following in reviewing your request:
- Whether you have paid on time in the past; and
- Your financial situation and ability to meet the monthly repayments.
Can I appeal to waive the penalties?
Yes. Please note that we cannot accept the following reasons:
- Too busy with work or business, so forgot about paying tax;
- Frequently travelling overseas, thus unable to check notices sent by IRAS; or
- Notices and bills are always missing and not received.
We wish to reiterate that it is the responsibility of every taxpayer to comply with their tax obligations, and to pay their taxes on time.
For new taxpayers or those with valid reasons, we will be prepared to waive in full or partially, especially if you have been paying on time in the past or if you were late with valid reasons. To support your reasons, you may submit relevant documentation.
For appeals, please call (65) 6356 7012.
Subsequently, to confirm that the penalty has been waived, you may log in to myTaxPortal under “View Accounts Summary” to check.
What may happen if the tax and penalty is not paid by the Notice to Pay due date?
We may, without prior notice, recover the outstanding tax by:
- Appointing your bank, employer, tenant or lawyer as agent to pay the money to us; or selling the property whose property tax is outstanding by public auction.
What can I do to get my bank appointment released?
Your bank can be released as agent only after the outstanding tax and penalty are paid. Therefore, this can be either:
- After the bank pays the full amount to IRAS. The appointment of agent would be automatically released; or
- After you have arranged to pay the full amount to IRAS. If you do so, please call (65) 6356 7012 to inform us so that the appointment can be released as soon as possible.
Please note that banks do not process requests for release on Saturdays, Sundays and Public Holidays.
How can I check my tax balance?
You may log in to myTaxPortal under “View Accounts Summary” to check your current balance.