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Late Payment or Non-Payment of Taxes

Most taxpayers pay their taxes on time. There are penalties if tax is not paid on time.

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Late Payment Penalty

You have one month from the date of the Notice of Assessment (NOA) to pay your taxes. 

You are still required to pay the tax assessed as shown on the NOA before the payment due date even if you have filed an objection and are awaiting the outcome. If the assessment is subsequently revised, any excess payment will be refunded.

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

Additional penalties of 1% per month may be imposed if the tax remains unpaid 60 days after the imposition of the 5% penalty. The 1% additional penalty will be imposed for each completed month that the tax remains unpaid, up to a maximum of 12% of the unpaid tax.

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Late Payment Penalty Notice

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

If you are unable to pay the tax in full, you may apply for up to 12 interest-free monthly instalments via GIRO.

The 12-month GIRO instalment cycle normally starts in May and ends in April of the following year. However, if you join GIRO after May, the instalment deduction will commence in the month after your GIRO application is approved and end in April of the following year.

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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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 you that the GIRO plan has been cancelled. A late payment penalty will be imposed if the overdue tax is not paid immediately.

If you repeatedly default on your payment plan, IRAS may disallow your subsequent requests for a payment arrangement.

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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 from leaving Singapore; and/or
  • Taking legal action.

You 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 your tax has been received.

In addition to the recovery actions, IRAS may concurrently impose an additional 1% penalty on the overdue tax for each completed month that the tax remains unpaid, up to a maximum of 12% 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, 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 notification 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.

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Checking Tax Balance and Making Payment

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

Please refer to Income Tax Payments for the various payment modes 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 before the due date as stated in the late payment penalty notice; an
  2. a. No waiver has been granted in the past two calendar years; or  
    b. You have paid on time for the past two years.
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  • How is the 5% and 1% additional late payment penalty computed?

    Example 1: Calculation of 5% late payment penalty

    Date of the Notice of Assessment (NOA) is 1 Jun 2020 and the tax payable is $3,000. 5% penalty of $150 (i.e. 5% x $3,000) is added when the tax is not paid before 1 Jul 2020.

     Date of NOA NOA Due Date Tax Payable5% Penalty Imposed 
    1 Jun 2020 1 Jul 2020 $3,000 $150 

     

    Example 2: 1% additional penalty

    Taxpayer did not pay the tax payable of $3,000 before the due date on the NOA, and received a late payment penalty notice dated 2 Jul 2020 with 5% penalty added to the overdue tax. The due date for payment of tax and penalty of $3,150 on the late payment penalty notice was 2 Aug 2020 (one month from the date of late payment penalty notice).

    As the tax was unpaid one completed month after 60 days from the late payment penalty notice date, a 1% additional penalty was imposed on 2 Oct 2020. 1% penalty will continue to be imposed for ach additional month that the tax remained unpaid.

    The total penalty imposed was $210 (5% penalty x $3,000 plus 1% additional penalty x $3,000 x 2 months).

    Taxpayer eventually paid the tax and penalties on 15 Nov 2020.

    Late Payment Penalty Notice DatePayment Date 5% Penalty Imposed Additional 1% Penalty Imposed 
    2 Jul 202015 Nov 2020

    $150

    ($3,000 x 5%)

    $60

    ($3,000 x 1% x 2 months)

     

  • Can I sign up for GIRO?

    Yes. You can sign up for GIRO. Please see ‘ways to apply for GIRO’.

  • My GIRO instalment plan was cancelled and penalty has been imposed. Can I continue to pay by GIRO instalments?

    If you wish to continue paying by GIRO instalments, you can re-activate your GIRO arrangement via the 'Apply for Payment Plan' e-Service at myTax Portal, before the payment due date stated in the late payment penalty notice.

    You must comply with the payment plan schedule if your payment plan is approved. Should you repeatedly default on your payment plan, IRAS may disallow your subsequent requests for a payment arrangement.