Income Tax is payable within one month from the date of Notice of Assessment, i.e. tax bill. You can pay your Income Tax in one deduction or over a maximum of 12 interest-free monthly instalments, subject to a minimum monthly deduction amount of $20. A minimum deduction amount is set so as to manage the cost of collection.
How GIRO works?
The 12 monthly GIRO instalment cycle starts in May and ends in April of the following year. If you join GIRO after May, the instalment deduction will commence in the month after your GIRO form is approved and end in April of the following year.
Provisional Instalment Plan (PIP)
Once you are on our GIRO payment scheme, future instalment payments for your taxes will continue in May each year to April of the following year based on a provisional amount. The amount deducted will be based on the instalment amount as per your previous year's tax. The PIP is to allow you to enjoy the maximum number of monthly instalments.
When will my PIP be revised?
Your PIP will be revised when your tax assessment for the year is finalised. The revised instalment plan will be sent to you together with your Notice of Assessment.
What happens once my tax assessment is finalised?
The tax instalments that you have paid will be used to offset your tax assessed. The instalments for subsequent months will be adjusted accordingly.
If the total amount paid exceeds the actual tax assessed, any excess payment will be refunded to you. There is no need for you to make a claim for refund.
Can I change the provisional tax amount if my previous year’s tax is not reflective of my current income level?
Yes, you can call us to make the change. To enjoy a maximum of 12 monthly instalments, please contact us by 10 Mar to provide your estimated tax payable for the year. You may use the Income Tax Calculator to estimate your tax payable. Your first monthly provisional deduction will commence in May of the year. Please call 1800 356 8300 or email us.
When is the monthly GIRO deduction made?
The deduction from your bank account will be made on the 6th of each month. Where a deduction date falls on a weekend or public holiday, the deduction will be made the next working day. The deduction will be reflected under the transaction code "ITX" in your bank statement or passbook.
What happens if I default on one GIRO deduction?
If the deduction is not successful, we will attempt to deduct the amount again on the 20th of the same month. If the second attempt is also not successful, the instalment amount will be deducted together with the following month's instalment. The GIRO plan will be cancelled if the deduction is not successful for two consecutive months. For example, if the instalment is $100 per month and the GIRO deductions are not successful on the 6th and 20th of June, we will attempt to deduct $200 ($100 for June and $100 for July) in July. If the deductions fail again on 6th and 20th of July, the GIRO plan will be cancelled.
Upon cancellation of the GIRO plan, you will need to pay all outstanding tax immediately.
Please ensure there are sufficient funds in your bank account before the deduction date. No reminders will be sent for unsuccessful deductions. Some banks may impose a service charge for unsuccessful deductions.
Can I request to change the GIRO deduction date?
No, the GIRO deduction date is fixed for each billing organisation as agreed with the banks.
How do I terminate my GIRO account for payment of tax?
To terminate your GIRO arrangement, you can call IRAS on 1800 356 8300 or email us. Please settle any outstanding tax in full, before you terminate the GIRO arrangement.
When do I need to submit the GIRO application?
To avoid any late payment penalties, please allow at least two weeks before the payment due date for processing. We will write to you when the GIRO application has been processed. You can view your instalment plan details by logging in to myTax Portal.