Late Payment or Non-Payment of Taxes

Clubs/Associations have one month from the date of the Notice of Assessment (NOA) to pay their tax. 

A club/association is required to pay the tax as shown in the NOA even if it has filed an objection and is awaiting the outcome. If the assessment is subsequently revised, any excess payment would be refunded to the club/association.

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).

IRAS takes action against taxpayers that do not pay their taxes on time or fail to pay altogether. The following penalties will be imposed:

1. 5% late payment penalty
2. Additional 1% penalty when duty remains unpaid 60 days from the date of the Demand Note.

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

Payment must be made within 30 days from the date of Demand Note. If payment is not received, further enforcement actions may be taken.

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

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 filed and paid on time for the past two years.

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.