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; and
- a.
No waiver has been granted in the past two calendar
years; or
b. You have paid on time for the past two years.
Difficulty Paying Your Tax
If you need help with your tax payment, you may apply for a longer payment plan via the ‘Apply for Payment Plan’ e-Service at myTax Portal using your SingPass.
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.