Late Payment or Non-Payment of Taxes

Taxpayers are responsible and pay their tax on time. There are penalties if tax is not paid on time.

Payment Deadlines

Deaths From 1 Jan 2005 up to 14 Feb 2008

The executor, administrator, or accountable person is given 30 days from the date of the Notice of Assessment (NOA) to pay the tax. 

When no payment is received, a 6% penalty and subsequently a 1% additional penalty shall be imposed on the unpaid tax.

Deaths Before 1 Jan 2005

For deaths before 1 Jan 2005, only interest on Estate Duty will apply.

Late Payment Penalty

A penalty of 6% per year shall be imposed on the unpaid estate duty and/or interest  for the first complete month if the unpaid estate duty and/or interest is not paid by the Relevant Date. 

Relevant Date means 30 days from the date of Notice of Assessment (NOA) or six months from the date of death of the deceased, whichever is later.

If the duty and/or interest remains unpaid after 30 days from the date of NOA for more than six months from the date of death of the deceased, whichever is later, a penalty of 6% per year shall be imposed.

An additional penalty of 1% per year for each completed month on an incremental basis, subject to a maximum of 12% per year shall be imposed.

Late Payment Penalty Rates

PeriodDate of Death From 1 Jan 2005 to 14 Feb 2008Date of Death On or Before 31 Dec 2004
30 days after the date of NOA or six months after the date of death, whichever is later 6%0% 
One month after the imposition of the 6% penalty per year  7%0%
For each completed month that duty/interest remains unpaid 8%  (Incremental of 1% up to maximum of 12% per year)0%

Basis of Imposition of Late Payment Penalties

Imposition of the late payment penalty depends on when the NOA is received

  • when NOA is received within six months from the date of death of the deceased
  • when NOA is received after six months from the date of death of the deceased

Demand Note

Taxpayers who receive a demand note should pay the duty and penalty by the due date stated in the Demand Note. 

We may, without prior notice, recover the unpaid duty by taking legal action.

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