Penalties for late filing
We encourage taxpayers to comply with their tax obligations, such as filing on time. While the majority of taxpayers are compliant, there are taxpayers who do not comply. There are penalties if you do not file your tax return by the due date.
If the company does not file the Form C, audited/unaudited accounts and tax computations by 30 Nov, IRAS may take the following recovery actions:
- Issue an estimated Notice of Assessment ( company will have to pay the tax amount based on IRAS' estimated Notice of Assessment within 30 days )
- Impose a penalty for not filing
- Issue a Section 65B(3) notice to the director
- Summon the company / director to Court
- Take legal actions ( Where IRAS takes legal action for late filing of tax returns, the penalty may be twice the tax amount assessed by IRAS )
Upon receiving IRAS' estimated Notice of Assessment
Please pay the estimated tax within 30 days from the date of the Notice of Assessment (NOA). It is important that you pay the estimated tax even if you disagree with the tax amount or you intend to object to the assessment. Otherwise, your payment will be considered late and there will be penalties for late payment.
- If you disagree with the estimated tax assessment, you may file an objection via myTax Portal at mytax.iras.gov.sg. Alternatively, you may write to our Corporate Tax Department at ctmail@iras.gov.sg or fax no.: 6351 4360. Please do so within 30 days from the date of the NOA, with your reasons for not filing on time and grounds for objection.
- File your full set of returns without further delay so that the estimated tax can be revised and the actual tax to be paid can be finalised.
Upon receiving an "Offer of Composition for Failure to File Form C and/or Certified/Audited Accounts and/or Corporate Tax Computation"
If you have received the Offer of Composition letter, you should:
Please refer to the following sections of our website for more information on filing the relevant documents:
"Notice Pursuant to Section 65B(3) of the Income Tax Act" sent to the Company Director
If you have received the S65B(3) notice, you should:
Upon receiving a Summons notice
If we do not receive the required documents, a summons will be issued to the company and/or the director to attend Court on a specified date.
In Court, the company director / representative will have to take his plea after the charges are read. Upon conviction, he will be fined up to $1,000. He will still be required to file the outstanding documents, failing which, further prosecution actions may be taken.
If you wish to avoid attending Court, please do the following at least one week before the Court date:
File the outstanding documents. To request a form, please call 6356 7012; AND
Pay the summons fee using the enclosed payment voucher.
Please note that the company director / representative is required to attend Court with a Letter of Authorisation. Download sample Letter of Authorisation.
What legal actions may be taken against the company for not filing a tax return?
If the company, without reasonable excuse, do not file the tax return for any Year of Assessment (YA) for two years or more, upon conviction in Court, will have to pay:
- a penalty that is twice the amount of tax that IRAS may assess for that YA; AND
- a fine up to $1,000
E.g.
Your company's YA 2010 tax return was not filed by 1 Dec 2012, without reasonable excuse.
IRAS assesses your company's YA 2010 tax to be $100,000.
The company would have to pay, upon conviction in Court, a penalty of $200,000 and a fine up to $1,000, to Court. This is on top of having to pay the tax of $100,000.
How do I file the Form C, audited/unaudited accounts and tax computation?
1. To file Form C:
For current Year of Assessment
You can either:
For previous Years of Assessment
2. To submit audited/unaudited accounts and tax computation:
Please send by post to:
Comptroller of Income Tax
Revenue House
55 Newton Road
Singapore 307987
How do I pay the Composition Fee?
Using the payment voucher enclosed with the IRAS letters, you may pay the composition fee via the following:
By Singapore-bank cheque, crossed and made payable to the "Comptroller of Income Tax", with your full name, Tax Reference No. and Summons No. (for summons cases) written on the reverse side of the cheque.
Important Notes:
1) If you would like to check if your payment has been credited, please log in to myTax Portal and select "View Account Summary" after three working days.
2) If you pay the composition fee without filing your tax return, prosecution action may be taken.
Can I appeal for the composition fee to be waived?
We recognise that sometimes events will take place that prevent the company from meeting their filing obligations on time. Therefore, we do reduce or waive composition fees, if the delay in filing was due to circumstances beyond the company's control.
Each appeal is unique and will be considered on a case-by-case basis. You may be asked to substantiate your claims with documentary evidence.
However, where the company is deemed to have made no reasonable effort to meet the due dates, IRAS will not allow the appeal. These are instances where IRAS cannot accept an appeal:
- It is not the first time the company has not filed or paid on time;
- Company claims Form C was not received;
- Company cites a change in management / accountants as a reason; or
- Company's documents are/had to be sent overseas for company directors to sign.