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.

Late Penalty Fees

Taxpayers have to pay the tax within 30 days from the date of the Notice of Assessment (NOA).

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.

 

Even if you have objected to the tax assessed, you are still required to pay the tax as shown on the NOA by the payment due date

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 the Demand Note. If payment is not received, further enforcement actions may be taken. 

Taxpayer received a Notice of Assessment (NOA) dated 23 Dec 2015. The due date for payment is 23 Jan 2016 (one month from the date of NOA). As the tax payable is $10,000 and payment was only received on 31 Jan 2016, a 5% penalty of $500 is imposed.  

Notice of Assessment Date

23 Dec 2015

Notice of Assessment Due Date

23 Jan 2016

Payment Date

31 Jan 2016

Tax Amount

$10,000

5% Penalty

$500

1% Additional Penalty

The additional 1% 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 that the tax remains unpaid. The total additional penalty imposed will not exceed 12%.

Taxpayer received a Demand Note dated 4 Feb 2015. The due date for payment was on 4 Mar 2015 (one month from the date of Demand Note). The tax payable is $10,000 and the payment was only received on 15 Jun 2015.

In this instance, the payment was overdue by more than two completed months. Hence, there is a 5% penalty of $500 and a 1% additional penalty of $200. Therefore, the total penalty imposed is $700.

Demand Note Date

4 Feb 2015

Demand Note Due Date

4 Mar 2015

Payment Date

15 Jun 2015

Tax Amount

$10,000

5% Penalty

$500

1% Additional Penalty

$200

Can I Appeal to Waive Penalties

Generally, penalties will not be waived unless there are exceptional circumstances such as :

1. This is your first time paying tax or that you have been paying on time in the past, or

2. You have valid reasons for paying late and you are able to substantiate these reasons with documentary evidence.

The following are not considered valid reasons:

1. Too busy with work or business, so forgot about paying tax, or

2. Frequently travelling overseas, thus unable to check notices sent by IRAS, or

3. Notice and Bills are not received.    

Please call us on +65 6351 3847 or email us at enfmisctax@iras.gov.sg to appeal for waiver.

Further Enforcement Actions

We may without prior notice, take action to recover the overdue tax. For example :

  1. Appoint your bank, tenant or lawyer as agent to pay the money to IRAS
  2. Take legal action

What can I do to get my Bank Appointment Released?

Taxpayer's bank can be released as agent only after the unpaid tax and penalty are paid.

Therefore, this can be either:

  • After the bank remits 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 contact us at +65 6351 3847 so that the appointment can be released as soon as possible.

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

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