Voluntary Disclosure of Errors for Reduced Penalties

The IRAS Voluntary Disclosure Programme (VDP) aims to encourage taxpayers that have made errors in their tax returns to voluntarily come forward to correct their errors. IRAS is prepared to reduce penalties for voluntary disclosures which meet the qualifying conditions.

 

Rationale and Scope

Majority of taxpayers want to comply with their tax obligations. Some occasionally make errors in their tax returns due to lack of care or awareness of their tax obligations.  The IRAS Voluntary Disclosure Programme (VDP) aims to encourage taxpayers who have made errors in their returns / forms to come forward voluntarily, in a timely manner, to correct their errors for reduced penalties.

The IRAS VDP applies to Income Tax (including cash payouts / bonus), GST, Withholding Tax and Stamp Duty.

Qualifying Conditions

To qualify for IRAS' VDP, you need to submit a timely, accurate, complete and self-initiated voluntary disclosure. A voluntary disclosure is considered timely and self-initiated when it is made before you receive a query from IRAS relating to your tax or cash payout / bonus matters, or before you receive notification from IRAS on the commencement of an audit or investigation on your tax or cash payout / bonus matters.

You must also:

  1. Cooperate fully with IRAS to correct the errors made; and
  2. Pay or make arrangements with IRAS to pay additional taxes or amount exceeding cash payout / bonus than entitled to and penalties imposed (if any), and honour such arrangements till all payments are made.

For more details, please refer to the  e-Tax Guide on IRAS' Voluntary Disclosure Programme .

Reduced Penalties

Type of Voluntary Disclosure

Penalty Treatment

Voluntary disclosure made within the grace period of one year from statutory filing deadline, and the qualifying conditions are met

No  penalty imposed

Voluntary disclosure made after the grace period and qualifying conditions  are met

Reduced  penalty of :

  • 5% of the income tax undercharged or of the amount of cash payout / bonus exceeding entitlement obtained, for each year the error was late in being rectified
  • Flat 5% of the GST undercharged
  • Flat 5% of the outstanding Withholding Tax

Voluntary disclosure for late stamping or underpayment of Stamp Duty and the qualifying conditions are met

Reduced  penalty of :

  • 5% per annum computed on a daily basis on the Stamp Duty payable

No grace period for Stamp Duty

 

Voluntary Disclosure of Past Actions Involving Wilful Intent to Evade Taxes or to Obtain a Higher Amount of Cash Payout / Bonus than Entitled to

Taxpayers who commit offences involving wilful intent to evade taxes or to obtain excessive cash payouts, including persons who assisted in such acts, may face prosecution, and the consequent punishment of being jailed up to 7 years and / or fined up to $50,000, and penalised up to 400% of tax undercharged / unpaid.

When you come forward and voluntarily disclose past actions involving a wilful intent to evade taxes or to obtain excessive cash payouts, you may be accorded the treatment of having your offences compounded at a reduced penalty rate of 200% in lieu of prosecution. If you do not meet the qualifying conditions for IRAS' VDP, you may be charged in court for your tax evasion offences.

For more details, please refer to the e-Tax Guide on IRAS' Voluntary Disclosure Programme.

Making a Voluntary Disclosure

   If you would like to make a voluntary disclosure, you can inform us in the following ways:

Tax Type

How to Inform IRAS

Individual Income Tax

Email required information and supporting documentation (detailed in Annex F of e-Tax Guide ) to  iit_compliance@iras.gov.sg  

Corporate Tax

Email required information and supporting documentation (detailed in Annex F of e-Tax Guide ) to  ctmail@iras.gov.sg

GST

Send an electronic request to IRAS for GST F7  (Disclosure of Errors on GST Return) and e-File the GST F7 at any time, up to 14 days from the date of request for the GST F7
For GST late registrants, submit GST F1 (Application For GST Registration) that can be downloaded from the IRAS website
For unauthorised GST collections, email gst@iras.gov.sg

Withholding Tax

Email required information and supporting documentation (detailed in Annex F of e-Tax Guide ) to  enfs45@iras.gov.sg

Stamp Duty

Stamp document via the e-Stamping system

All Tax Types

For voluntary disclosures of past actions involving a wilful intent to evade taxes or to obtain excessive cash payouts, you can email IRAS at  ifd@iras.gov.sg .

Alternatively, you can write in to:

Inland Revenue Authority of Singapore
Revenue House
55 Newton Road
Singapore 307987

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