Late Payment or Non-Payment of Taxes

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

Late Penalty Fees

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

Even if you have objected to the tax assessed, you are still required to pay the tax as shown on the Notice of Assessment (NOA) by the payment due date.  

When payment is not received by the due date, a 5% penalty and subsequently, an additional 1% penalty can be imposed on the unpaid tax.

Penalties are imposed to discourage late payment.

GIRO Cancellation

Your GIRO instalment plan may be cancelled due to insufficient funds in the bank account, deduction amount that is higher than the bank limit set by taxpayer, etc.

When this happens, IRAS will send a letter to inform the taxpayer that the GIRO plan has been cancelled.

A taxpayer whose GIRO instalment plan is cancelled will have a 5% penalty imposed to the unpaid tax.

 

Demand Note

When a 5% penalty is imposed, a Demand Note will be issued, showing the unpaid tax and penalty.

Payment must be made within 30 days from the date of the Demand Note. Further enforcement actions will be taken when payment of tax and penalty are not received on time.

Date of the Notice of Assessment is 25 June 2015and 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 25 July 2015.

Date of Notice of Assessment

Notice of Assessment Due Date

Tax Payable

5% Penalty

25 June 2015

25 July 2015

$3,000

$150

 

Appeal against Penalty Imposed 

IRAS will consider your appeal for a waiver of the late payment penalty if:

  1. This is your first appeal or;
  2. You have no other 'late' offences in the last 2 years; and
  3. You undertake to pay your tax by the due date in future.

     

To appeal, you may call us on 6356 7012. Select option (1) and follow the instructions given over the phone.

1% additional penalty

1% additional penalty may be imposed 60 days after the 5% penalty when the tax is still not paid. The 1% penalty is imposed for each month that the tax remains unpaid. The total additional penalty will not exceed 12%.

A taxpayer has an unpaid tax of $3,000. A Demand Note was issued on 25 July 2015. 1% additional penalty of $30 (i.e. 1% x $3,000) was imposed on 25 October 2015.

Date of Demand Note

Tax Payable

5% Penalty

1% Penalty Imposed on

1% Penalty

25 July 2015

$3,000

$150

25 October 2015

$30

1% additional penalty may be imposed up to a maximum of 12 months that the tax remains unpaid. The maximum additional penalty that may be imposed will be $360 (i.e. $30 x 12 months).

 

Further Enforcement Actions

We may, without prior notice, take the following action to recover the unpaid taxes. For example:

  • Appoint your bank, employer, tenant or lawyer as agent to pay the money to IRAS;
  • Issue a travel restriction order to stop the taxpayer from leaving Singapore; and/or
  • Take legal action.

 

Travel Restrictions

Taxpayers with unpaid taxes may receive a travel restriction notice stating that they are stopped from leaving Singapore. This travel restriction notice will be cancelled once IRAS receives full payment of the unpaid taxes.

Taxpayers can pay the taxes at the nearest Singapore Post Branch or via Internet banking to IRAS.

Once payment is made, taxpayers should produce the following documents to the Immigration & Checkpoint Authority (ICA) officer to facilitate travel out of Singapore:

  • Payment receipt, or
  • A copy of the acknowledgement confirming your payment by Internet banking.

The ICA officer may contact IRAS to verify the details or the payment while the taxpayer is at the checkpoint.

Please note that IRAS is unable to cancel the Travel Restriction Order on weekends and Public Holidays.

 

Releasing your Bank as Agent

Your bank is released as agent only after the unpaid tax and penalty are paid. This can be either:

  • After the bank pays the full amount to IRAS. The appointment of agent would be automatically released; or
  • After you have paid the full amount to IRAS. If you do so, please call (+65) 6356 7012 to inform us so that the appointment can be released early; or
  • After you have made payment arrangement with IRAS.

Please note that banks do not process requests for release on Saturdays, Sundays and Public Holidays. Any request for release of bank after 2p.m. on weekdays can only be processed on the next working day.

  • What should I do when I receive a Demand Note?

    You have to pay the tax and penalty in full by the due date of the Demand Note. Otherwise, further enforcement actions can be taken.

  • What should I do when I have difficulties paying the tax and penalties?

    Please call (+65) 6356 7012 before the payment due date. We will discuss with you the best payment option. Documents such as bank statements and pay slips may be required to substantiate your claims.

  • My GIRO instalment plan was cancelled and penalty has been imposed. What should I do?

    If you wish to continue paying by GIRO instalments, please call (+65) 6356 7012 before the payment due date stated in the Demand Note to make your request.

    In processing your request, we will consider:

    • Whether you have paid on time in the past; and
    • Your financial situation and ability to meet the monthly repayments.
  • How can I check my tax balance?

    You may log in to myTaxPortal under "View Accounts Summary" to check your current balance.

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