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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 by 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 by the due date, a 5% penalty and subsequently an additional 1% penalty will be imposed for every completed month (up to a maximum of 12% of the tax outstanding).

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Late Payment Penalty Letter

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

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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 you that the GIRO plan has been cancelled.

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Imposition of Additional Penalty

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% penalty will be imposed for each completed month that the tax remains unpaid, up to a maximum of 12% of the tax outstanding (inclusive of the 5% late payment penalty).  

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

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 outstanding.

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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, you 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, you are required to produce the proof of payment to the Immigration & Checkpoints Authority (ICA) officer. It is your responsibility to ensure that you have a valid pass to remain in Singapore. If extension of time is required to resolve your tax matters with IRAS, please approach the ICA to extend your stay in Singapore.

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 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, by the due date as stated in the late payment penalty letter; and
  2. a. This is your first appeal; 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 is 24 Jun 2017 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 by 24 Jul 2017. 

    Date of Notice of AssessmentNotice of Assessment Due DateTax Payable5% Penalty Imposed
    24 Jun 2017  24 Jul 2017$3,000 $150

     

    Example 2: 1% additional penalty

    Taxpayer did not pay the tax payable of $3,000 by the due date on the NOA, and received a late payment penalty letter dated 25 Jul 2017 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 letter was 25 Aug 2017 (one month from the date of late payment penalty letter). Taxpayer eventually paid the tax and penalty on 26 Oct 2017.

    The payment was overdue by more than two months after the late payment penalty letter due date (i.e. Sep and Oct).  The 1% additional penalty of $30 per month was imposed for 2 months. The total penalty imposed was $210 (5% penalty x $3,000 plus 1% additional penalty x $3,000 x 2 months).

    Late Payment Penalty Letter Due Date Payment Date 5% Penalty Imposed Additional 1% Penalty Imposed 
    25 Aug 201726 Oct 2017

    $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 letter.