If you did not pay or paid late

• If you did not pay or paid late 
• Demand Note - What should I do 
• I have objected - Why am I still penalised for not paying 
• Instalment plan is cancelled and penalty is imposed - What should I do 
• Penalty - How to appeal 
• Demand Note's due date is over - What will happen 
• Bank is appointed - What should I do 
• 1% additional penalty - When is it imposed 

If you did not pay or paid late

Taxpayers must file their tax returns and pay on time. Each year, a minority of taxpayers fail to do so.

To ensure fair administration of taxes, those who fail to comply with their filing and payment obligations will be penalised.

Taxpayers are given 30 days from the date of the Notice of Assessment (NOA) to pay the tax. If the tax is not paid or is paid late, the following penalties will be imposed on the tax unpaid after due date:

• 5% penalty

• 1% additional penalty

When the 5% penalty has been imposed, a Demand Note will be issued, showing the unpaid tax and penalty. Payment has to be made within 30 days.

Example:

Taxpayer received a Notice of Assessment (NOA) dated 23 Dec 11. The due date for payment was 23 Jan 12 (1 month from the date of NOA). As the tax payable is $10,000 and payment was only received on 31 Jan 12, a 5% penalty of $500 was imposed.

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Demand Note - What should I do

You should pay the tax and 5% penalty by the due date stated in the Demand Note. Otherwise, further penalties may be imposed and recovery actions will be taken.

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I have objected - Why am I still penalised for not paying

You have to pay the tax as shown on the Notice of Assessment (NOA) even though you have objected within 30 days from the date of the NOA.

If the NOA is revised, excess payment made will be refunded to you.

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Instalment plan is cancelled and penalty is imposed - What should I do

You have to pay the tax and penalty in full by the due date of the Demand Note or further penalties may be taken.

If you wish to continue paying by GIRO instalments, you may call us on 6351 2868/2827 or email us at enfmisctax@iras.gov.sg to submit your request. The revised instalment plan will include the 5% penalty.

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Penalty - How to appeal

Generally, penalties will not be waived.

However, IRAS may be prepared to consider your appeal in the following situations:

• This is your first time paying tax or if you have been paying on time in the past; or

• You have valid reasons for paying late and you are able to substantiate these reasons with documentary evidence.

In addition to the above, we recognise that there may be factors beyond your control which resulted in the late payment. You have to support your claims with documentary evidence if necessary.

You may call us on 6351 2868/2827 or email us at enfmisctax@iras.gov.sg to appeal for waiver.

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Demand Note's due date is over - What will happen

We may, without prior notice, recover the outstanding tax by:

• Appointing the bank, tenant or lawyer as agent to pay us;

• Imposing an additional penalty of 1% on the outstanding tax for each completed month that the tax remains unpaid; and

• Taking legal action.

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Bank is appointed - What should I do

The Club or Association's 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; or

• After you have arranged to pay the full amount to IRAS. If you do so, please call us on 6351 2868/2827 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.

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1% additional penalty - When is it imposed

A 1% additional penalty shall be imposed 90 days from the date of the Demand Note if the tax is still not paid.

The 1% penalty shall be imposed for each month that the tax remains unpaid. The total additional penalty shall not exceed 12%.

Example:

Taxpayer received a Demand Note dated 4 Feb 12. The due date for payment was on 4 Mar 12 (1 month from the date of Demand Note). The tax payable is $10,000 and the payment was only received on 15 Jun 12.

In this instance, the payment was overdue by more than 2 completed months. Hence, there was a 5% penalty of $500 and a 1% additional penalty of $200 imposed. Therefore, the total penalty imposed was $700. 

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