Home > Businesses > Companies > Paying Corporate Income Tax >

Experiencing Difficulties in Paying Your Tax?

 
Jump To

In light of the global COVID-19 outbreak, a series of support measures have been introduced to help businesses and individuals to ease their cash flow. During this period of uncertainty, IRAS continues to extend its assistance and provide tax certainty to taxpayers. We have set out the following tax guidance for taxpayers who may be affected by the COVID-19 developments. Visit COVID-19 Support Measures and Tax Guidance for more information.

    If you are facing difficulties in paying your tax, we encourage you to reach out to us early to work out a suitable payment arrangement. Otherwise, a 5% late payment penalty will be imposed on the overdue tax.

    It is important that you do not ignore the tax bill or a demand for payment. 

    Back to top

    For Individuals or Businesses in Financial Difficulties

    We may offer a suitable payment arrangement, such as a longer instalment plan, if you are unable to pay your tax due to unexpected or extenuating circumstances such as:

    • High medical expenses
    • Loss of employment or substantial reduction in income
    • Business under financial distress (e.g. facing lawsuits from creditors or business closure)
    Back to top

    Arranging for a Longer Payment Plan

    IRAS will only grant instalments by GIRO. You can appeal for a longer payment plan via the ‘Apply for Payment Plan’ e-Service at myTax Portal using your Singpass or IRAS Unique Account (IUA).

    If you have an existing GIRO arrangement

    View the video below on how to customise your payment plan in 2 simple steps:

    1. Cancel existing plan
    2. Arrange new plan

    Alternatively, you may refer to the guide (PDF, 1.36MB) for the detailed steps. 

    Login to myTax Portal with your Singpass or IRAS Unique Account now!

    If you do not have an existing GIRO arrangement (for Individual Income Tax and Property Tax)

    View the video below on how to customise your payment plan in 2 simple steps:

    1. Apply for GIRO (using DBS/POSB or OCBC bank) via myTax Portal
    2. Arrange new plan

    Alternatively, you may refer to the guide (PDF, 2.32MB) for the detailed steps.

    Login to myTax Portal with your Singpass or IRAS Unique Account now!

    If you do not have an existing GIRO arrangement (for Corporate Income Tax and Goods and Services Tax)

    Customise your payment plan in 2 simple steps:

    1. Complete the hardcopy Master GIRO form (PDF, 1.29MB) and send it to IRAS; and
    2. Submit your payment proposal online within the same day.

    We will review your request and inform you of the outcome within 15 working days. Where needed, we may also ask you for more information to better understand and assess your situation.

    If your payment plan is approved, you must comply with the payment plan schedule. If you fail to do so, we will cancel the plan and take actions to recover the tax. 

    Back to top

    Financial and Other Support Services

    If you require other forms of assistance specific to your circumstances, you may wish to approach the following agencies:

    For social assistance

    For employment assistance

    For enterprise assistance

    Enterprise Singapore provides companies with various financial and non-financial assistance schemes.

    Back to top

    • Under what circumstances can I appeal for a longer instalment plan?

      We will consider granting extended instalments only if you are in financial difficulty due to the following reasons:  

      For Individuals

      - Loss of job/business failure

      - Reduction in income or business cashflow

      - No steady source of income

      - High medical expenses incurred for yourself or your immediate family members

      For Businesses

      - Slow collections

      - Reduction in sales

      - Increase in overheads

    • What should I do if I have an existing GIRO arrangement but would like to appeal for a longer payment plan?

      For revision of GIRO payment plan, please cancel your existing arrangement and apply for a new payment plan using the ‘Apply for Payment Plan’ e-Service. Please refer to the guide (PDF, 1.36MB) for the detailed steps.

    • Will I be required to make full payment of the taxes after initiating the cancellation of my existing payment plan?

      For revision of GIRO payment plan, you do not need to make full payment of the tax after initiating the cancellation of your existing plan. However, you will need to apply for a new payment plan immediately to avoid penalties and/or enforcement actions.

      Your revision of GIRO payment plan is complete when you see the Acknowledgement page showing your payment plan details and application status as ‘Approved’. For requests pending approval, we will review your appeal and inform you of the outcome within 15 working days.

      Apply for Payment Plan Acknowledgement Page