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.
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 moth that the tax remains unpaid, up
to a maximum of 12% of the unpaid tax.
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.
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.
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.
Releasing Appointed Agents
Agents will only be released from the appointment after the tax and penalties have been paid.
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.
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.
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.
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:
- You have paid the overdue tax in full before the due date as stated in the late payment penalty notice; an
- a. No waiver has been granted in the past two calendar years; or
b. You have paid on time for the past two years.