Late Payment or Non-Payment of Taxes

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

Late Payment

For annual Property Tax bills, taxpayers are required to pay by 31 Jan of each year. For ad-hoc bills due to new assessments or reassessments, taxpayers are given one month to settle the tax from the date of the bill.

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.

When payment is not received by the due date, a 5% penalty will be imposed on the unpaid tax.

Penalties are imposed to discourage late payment.

 

 

GIRO Cancellation

GIRO instalment plans 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 added to the unpaid tax.

Notice to Pay

When the 5% penalty has been imposed, a Notice to Pay will be issued, showing the unpaid tax and penalty. Payment must be made within 14 days of the Notice to Pay.

Date of the Property Tax bill is 15 Dec 2015 (for year 2016 Property Tax) and the tax payable is $1,000.

The 5% penalty of $50 (i.e. 5% x $1,000) was imposed as the tax was still not paid by 31 Jan 2016.

Date of Property Tax Bill

Property Tax Due Date

Tax Payable

5% Penalty

15 Dec 2015

31 Jan 2016

$1,000

$50

 

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.

Further Enforcement Actions

 We may, without prior notice, take the following actions to recover the unpaid tax:

  • Appoint your bank, employer, tenant or lawyer as agent to pay the money to IRAS; or
  • Sell the property whose property tax is unpaid by public auction.

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 2pm on weekdays can only be processed on the next working day.
  • What should I do when I receive a Notice to Pay?

    You have to pay the tax and penalty in full by the due date stated in the Notice to Pay. 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 payslips may be required to substantiate your claims.

     

  • My GIRO instalment plan was cancelled and penalty has been imposed. Can I continue to pay by GIRO instalments?

    If you wish to continue paying by GIRO instalments, please call (+65) 6356 7012 before the payment due date stated in the Notice To Pay to make your request. In processing your request, we will consider:

    • Whether you have paid on time in the past; and
    • Your circumstances 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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