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Penalties for Late or Non-Payment

Most GST-registered businesses pay GST on time. There are penalties if GST 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 GST payment is not received by the due date, a 5% penalty and subsequently an additional 2% penalty (not exceeding 50% of the tax outstanding) will be imposed for each completed month that the tax remains unpaid.

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Late Payment Penalty Letter

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

A 5% penalty is imposed when:

  1. GST F5/F8 Return is filed late. The 5% penalty is imposed on the tax declared in the return.
  2. GST F5/F8 Return is filed on time, but payment is not made by the due date. The 5% penalty will be imposed on the tax declared in the return.
  3. GST F5/F8 Return is not filed. 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.
  4. 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.
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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 late payment penalty letter and a GIRO cancellation letter will be issued to inform businesses that the GIRO plan has been cancelled.

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Imposition of Additional Penalty

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 tax overdue.

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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;
  • Issuing a travel restriction order (TRO) to stop you (applicable to sole proprietors and/or partners) from leaving Singapore; and/or
  • Taking legal action.

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.

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Releasing Appointed Agents

Agents will only be released from the appointment after the tax and penalties have been paid, or when payment has been arranged with IRAS.  

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 2pm 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 on an individual, he will be stopped from leaving Singapore at the Immigration exit checkpoints.

The TRO will be withdrawn upon full payment of the tax due. To do so, the individual is required to produce the proof of payment to the Immigration & Checkpoints Authority (ICA) officer.

Please note that IRAS is unable to withdraw the TRO on weekends and Public Holidays.

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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 and will only be considered if the following conditions are met:

  1. You have paid the overdue tax in full; and
  2. a. This is your first appeal; or
    b. You have filed and paid on time for the past two years.
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FAQs

    • 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 2017 by the due date 31 Oct 2017. 

      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 2017, 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 2017

      Due Date: 31 Oct 2017

      Date of NOA/ F5 ReceivedTax AmountPenalty Imposed
      5 Nov 2017 $3,000 $150
      10 Nov 2017 ($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 2017 by the due date 31 Oct 2017. 

      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 2017, 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 2017

      Due Date: 31 Oct 2017

      Date of NOA / F5 received Tax Amount Penalty Imposed
      5 Nov 2017 $3,000  $150 
      10 Nov 2017 $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 2017 by the due date 31 Oct 2017.

      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 2017, 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 2017

      Due Date: 31 Oct 2017

      Date of NOA / F5 receivedTax AmountPenalty Imposed
      5 Nov 2017 $3,000 $150
      10 Nov 2017 ($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 2017 on 31 Jul 2017 but did not pay the GST liability of $10,000 declared.  A late payment penalty letter was issued on 5 Aug 2017 and Business E eventually paid the GST and late penalties on 15 Dec 2017.

      The payment was overdue by more than four completed months i.e. Aug, Sep, Oct and Nov 2017. 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 EndingFiling and Payment Due DateDate of NOA/ F5 Received 5% Penalty Imposed 2% Additional Penalty Imposed 
      30 Jun 201731 Jul 201715 Dec 2017

      $500

      ($10,000 x 5%)

      $800 

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

       

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