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Penalties for Late or Non-Payment

Most GST-registered businesses pay GST on time. There are penalties if tax is not paid on time.

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Late Payment Penalty

GST-registered businesses must pay the GST due within one month after the end of the accounting period covered by the GST return.  

If payment is not received before the due date, a 5% late payment penalty will be imposed on the unpaid tax.

Additional penalties of 2% per month may be imposed if the tax remains unpaid 60 days after the imposition of the 5% penalty. The 2% penalty will be imposed for each month that the tax remains unpaid and shall not exceed 50% of the unpaid tax.

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Late Payment Penalty Notice

GST-registered businesses will be informed of the 5% late payment penalty via a late payment penalty notice. Payment must be made before the due date stated on the late payment penalty notice to avoid further enforcement actions.

A 5% penalty is imposed when:

  1. GST F5/F8 Return is not filed or filed late. The 5% penalty will be imposed on the estimated tax in your Notice of Assessment (NOA). The 5% penalty will be subsequently revised when the actual tax declared is higher or lower than the estimated tax.
  2. GST F5/F8 Return is filed on time, but payment is not made before the due date. The 5% penalty will be imposed on the tax declared in the return.
  3. GST F7 is filed more than 1 year from the original due date of the GST F5/F8, and there is additional tax payable. The 5% penalty will be imposed on the additional tax declared in the F7.
  4. GST F7 is filed within 1 year from the original due date of the GST F5/F8, but payment for the additional tax declared is not made. The 5% penalty will be imposed on the additional tax declared in the F7.
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GIRO Cancellation or Termination

If the deduction through GIRO is unsuccessful due to reasons such as insufficient funds in the bank account, or the deduction amount is higher than the limit set, etc., IRAS will cancel the GIRO plan.

A GIRO cancellation notice will be issued to inform businesses that the GIRO plan has been cancelled. A late payment penalty will be imposed if the overdue tax is not paid immediately.

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Further Enforcement Actions

If the tax continues to remain unpaid, other actions to recover the taxes may include: 

  • Appointing agents like your bank, employer, tenant or lawyer to pay the moneys to IRAS; and/or
  • Issuing a Travel Restriction Order (TRO) to stop you (applicable to sole proprietors and/or partners) from leaving Singapore; and/or
  • Taking legal action.

GST-registered businesses will experience inconveniences in using your bank accounts should your bank be appointed as an agent to recover tax. In some instances, you may not be able to access your bank accounts until the full payment for tax has been received.

In addition to the recovery actions, IRAS may concurrently impose an additional 2% penalty on the overdue tax for each month that the tax remains unpaid. The additional penalties shall not exceed 50% of the tax overdue.

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Releasing Appointed Agents

Agents will be released automatically from the appointment after the tax and penalties have been paid in full.

Note:
For banks appointed as agents, requests for release cannot be processed on Saturdays, Sundays and Public Holidays. Any request for release of bank after 12pm on weekdays can only be processed on the next working day.

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Travel Restrictions

If a Travel Restriction Order (TRO) is issued (applicable to sole proprietors and/or partners), you will not be allowed to travel out of Singapore until you pay the tax in full.

The Notification for Release of TRO will be available at https://mytax.iras.gov.sg two working days after your payment has been received and can be retrieved to facilitate your travel at the immigration checkpoints when you leave Singapore. We will also mail the certificate to you within ten days.

For non-NRIC holders, please note that it is your responsibility to ensure that you have a valid pass to remain in Singapore. Please approach the Immigration & Checkpoints Authority (ICA) to extend your stay in Singapore if you require more time to resolve your tax matters with IRAS. It is an offence to overstay in Singapore without a valid pass.

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Checking Tax Balance and Making Payment

Please log in to myTax Portal and select "View Account Summary" to check the current balance.

Please refer to GST payments for the various modes of payment available.

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Appeal for Late Payment Penalty Waiver

Appeals have to be made online via myTax Portal or using this Request for Penalty Waiver form. Alternatively, please scan the QR code below. The appeal will only be considered if the following conditions are met:

  1. You have submitted all the required GST returns and paid the overdue tax in full, before the due date as stated in the late payment penalty notice; and
  2. a. No waiver has been granted in the past two calendar years; or
    b. You have filed and paid on time for the past two years.

            Request for Penalty Waiver QR Code

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Difficulty Paying Your Tax

If you need help with your tax payment, you may apply for a payment plan via the ‘Apply for Payment Plan’ e-Service at myTax Portal.

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. 

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  • How is the 5% and 2% additional late payment penalty computed?

    Example 1: GST Liability less than Estimated GST

    Business A did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 before the due date 31 Oct 2020. 

    Assuming that the estimated GST payable was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

    On 10 Nov 2020, Business A declared its actual GST liability of $1,300. The GST and the late payment penalty were revised to $1,300 and $65 (5% penalty on $1,300) respectively.

     

     

    Accounting Period Ending: 30 September 2020

    Due Date: 31 Oct 2020

    Date of NOA/ F5 ReceivedTax AmountPenalty Imposed
    5 Nov 2020 $3,000 $150
    10 Nov 2020 ($1,700) ($85)
    Revised GST and 5% Penalty $1,300 $65

     

    Example 2: GST Liability more than Estimated GST

    Business B did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 before the due date 31 Oct 2020. 

    Assuming that the estimated GST amount payable was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

    On 10 Nov 2020, Business B declared its actual GST liability of $5,000. The GST and the late payment penalty were revised to $5,000 and $250 (5% penalty on $5,000) respectively.

     

     

    Accounting Period Ending: 30 Sep 2020

    Due Date: 31 Oct 2020

    Date of NOA / F5 received Tax Amount Penalty Imposed
    5 Nov 2020  $3,000  $150 
    10 Nov 2020 $2,000  $100 
    Revised GST and 5% penalty  $5,000 $250 

     

    Example 3: GST Liability is $0

    Business C did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 before the due date 31 Oct 2020.

    Assuming that the estimated GST amount was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

    On 10 Nov 2020, Business C declared its actual GST liability of $0. Both the GST and the late payment penalty were revised to $0.

     

     

    Accounting Period Ending: 30 Sep 2020

    Due Date: 31 Oct 2020

    Date of NOA / F5 receivedTax AmountPenalty Imposed
    5 Nov 2020 $3,000 $150
    10 Nov 2020 ($3,000) ($150)
    Revised GST and 5% penalty $0 $0

     

    Example 4: 2% additional penalty

    Business E filed a GST F5 Return for the period ending 30 Jun 2020 on 31 Jul 2020 but did not pay the GST liability of $10,000 declared. A late payment penalty notice was issued on 5 Aug 2020 and Business E eventually paid the GST and late penalties on 15 Dec 2020.

    As the tax was unpaid 60 days from the late payment penalty notice, a 2% additional penalty was imposed for each completed month that the tax remained unpaid, starting from the date on which the tax became payable (i.e. 2% penalty was imposed for completed months of Aug, Sep, Oct and Nov 2020). The total penalty imposed was $1,300 (i.e. 5% penalty x $10,000 plus additional 2% penalties x $10,000 x 4 months).

     

     

    Accounting Period Ending: 30 Jun 2020

    Due Date: 31 Jul 2020

    Date of NOA/ F5 Received 5% Penalty Imposed 2% Additional Penalty Imposed 
    15 Dec 2020

    $500

    ($10,000 x 5%)

    $800 

    ($10,000 x 2% x 4 months)

     

  • I have appointed a tax agent to handle my GST. Who is responsible for my business’ GST matters?

    As the business owner, you are still responsible and liable for your GST filing and payment matters in the event that your tax agent fails to settle the filing and payment issues promptly.