Penalties for Late or Non-Payment

GST-registered businesses must pay the GST due within one month after the end of the accounting period covered by the GST return. When payment is not received by the due date, a 5% penalty and subsequently a 2% additional penalty can be imposed on the overdue tax.

Penalties for Late Payment

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 by the due date, a 5% penalty and subsequently a 2% additional penalty can be imposed on the overdue tax.

Demand Note and 5% Penalty

When a 5% penalty has been imposed, a Demand Note showing the unpaid tax and penalty will be issued. Payment must be made by the due date stated on the Demand Note to avoid further enforcement actions.

A 5% penalty is imposed when:

  1. GST F5/F8 Return was filed late
    The 5% penalty is imposed on the tax declared in the return.
  2. GST F5/F8 Return not filed
    The 5% penalty imposed on the estimated tax in your Notice of Assessment. Subsequently, if the actual tax declared is higher than the estimated tax a further 5% penalty will be imposed on the additional tax.
  3. GST F7 Return was filed after 1 Year from the original due date
    When a GST F7 is filed after 1 year from the original due date of the GST F5/F8, and there is additional tax payable, a 5% penalty will be imposed on the additional tax declared in the F7.

Business A did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2015 by the due date of 31 Oct 2015. 

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

On 10 Nov 2015, 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 Sep 2015

Due Date: 31 Oct 2015

Date of NOA / F5 received Tax Amount Penalty 
5 Nov 2015$3,000 $150 
 10 Nov 2015 ($1,700)($85) 
 Revised GST and 5% penalty$1,300 $65 

 

Business B did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2015 by the due date of 31 Oct 2015. 

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

On 10 Nov 2015, 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 2015

Due Date: 31 Oct 2015

Date of NOA / F5 received Tax Amount Penalty 
5 Nov 2015$3,000 $150 
10 Nov 2015$2,000 $100 
Revised GST and 5% penalty  $5,000$250 

Business C did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2015 by the due date of 31 Oct 2015.

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

On 10 Nov 2015, 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 2015

Due Date: 31 Oct 2015

Date of NOA / F5 receivedTax AmountPenalty
5 Nov 2015$3,000$150
10 Nov 2015($3,000)($150)
Revised GST and 5% penalty$0

$0

Imposition of 2% Additional Penalty

A 2% additional penalty per month may be imposed if the tax is still not paid 60 days after the 5% penalty is imposed.  The 2% penalty is imposed for each month that the tax remains unpaid. The total additional penalty that can be imposed is 50% of the tax overdue.

Please note that the appointment of the company's bank, tenant, lawyer, etc. as agent to recover the outstanding tax will take place before the 2% additional penalty is imposed.

Business E filed a GST F5 Return for the period ending 30 Jun 2015 on 31 Jul 2015 but did not pay the GST liability of $10,000 declared.  A Demand Note was issued on 5 Aug 2015 and Business E eventually paid the GST and late penalties on 15 Dec 2015.

The payment was overdue by more than 4 completed months i.e. Aug, Sep, Oct and Nov. The total penalty imposed was $1,300 (i.e. 5% penalty x $10,000 plus additional 2% penalties x $10,000 x 4 months).

Please note that an agent (bank/lawyer/employer/tenant) would have been appointed to recover the overdue tax before the additional 2% penalty is imposed.

 Accounting period endingFiling and payment due date Date of NOA / F5 received 
 30 Jun 201531 Jul 201515 Dec 2015
 Tax amount5% Penalty 2% Additional Penalty   
 $10,000$500 

$800

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

Appeal for Waiver of Late Payment Penalty

Generally, penalties will not be waived unless there are exceptional circumstances.

IRAS may consider your appeal for waiver of the late payment penalty if:

  1. this is your first appeal;
  2. you have submitted the outstanding GST F5/F8;
  3. you have paid the overdue tax in full;
  4. you have filed and paid on time for the last 2 years; and
  5. you undertake to pay your tax by the due date in future. This includes taking measures to ensure that non or late payment will not happen again, such as signing up for GIRO.

Please call us on (+65) 6356 7012 to appeal for waiver. Select option (1) and follow the instructions given over the phone. You will receive a reply within 3 working days.

Difficulty Paying Tax or Penalties

As a GST-registered business, you are charging and collecting GST from your customers on behalf of IRAS. You must pay to IRAS the GST that you collected. 

However if you have difficulty paying the GST in full, you may call us on (+65) 6356 7012 before the payment due date appeal for an instalment plan. Your tax filing and payment history is a major factor when we review your appeal.

In addition, you may be required to provide the following documents to substantiate your claims:

  1. Latest bank statements;
  2. List of debtors; and 
  3. Any other documents to prove your financial position.

Instalments will usually include the imposition of late payment penalty.

Further Enforcement Actions

If the tax or penalty has not been paid by the due date on the Demand Note, we may, without prior notice, take action to recover the overdue tax, for example:

  1. Appoint your bank, employer, tenant or lawyer as agent to pay the money to IRAS;
  2. Issue a travel restriction order to stop you from leaving Singapore; and/or
  3. Take legal action.

In addition to the above, IRAS may impose an additional penalty of 2% on the overdue tax for each month that the tax remains unpaid.

Releasing the Bank

The bank appointed to pay the overdue tax on a company's behalf will be released as agent only after the overdue tax and penalty are paid.

The bank will be automatically released after:

  1. the bank pays the full amount to IRAS. The appointment of agent would be automatically released; or
  1. you have paid the full outstanding amount to IRAS. Please call (+65) 6356 7012 to inform IRAS so that the appointment can be released early.

Please note that banks do not process requests for release on Saturdays, Sundays and Public Holidays. Any request for release received after 2 p.m. on weekdays (Mon-Fri) is processed the next working day.

Travel Restrictions

Overdue taxes and penalties must be paid before leaving Singapore. If you have a travel restriction order, you are not allowed to leave Singapore until payment is received by IRAS.

Payment may be made at the immigration checkpoint where only cash/cashier's order is accepted.

Checking Tax Balance and Making Payment

Log in to myTaxPortal and select “View Accounts Summary” on the left-hand menu to check the current balance.

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

  • 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, even if your tax agent failed to settle the filing and payment issues promptly.

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