The majority of GST-registered businesses pay GST on time. The payment of GST is due within 1 month after the end of the accounting period covered by the GST return. Your business will incur penalties and face enforcement actions for late or non-payment of the GST.

Consequences for late payment or non-payment of taxes

IRAS may take the following actions if you fail to pay by the due date:

  1. Impose late payment penalties
  2. Appoint agents like your bank, employer, tenant or lawyer (handling the sale of any of your property) to recover the overdue tax
  3. For sole proprietors or partners, IRAS can issue a Travel Restriction Order (TRO) to stop you from leaving Singapore
  4. Take legal action

The above list is not exhaustive.

Late payment penalty

A 5% late payment penalty will be imposed in the following circumstances:

  1. On the estimated tax raised when the GST F5/F8 is not filed or filed late.
  2. On the tax declared when the GST F5/F8 is filed on time, but payment is not made by the due date.
  3. On any additional tax payable when the GST F7 is filed more than 1 year from the original due date of the GST F5/F8.
  4. On any additional tax payable when the GST F7 is filed within 1 year from the original due date of the GST F5/F8, but payment for the additional tax declared is not made by the due date.

Example 1: Penalty imposed for late payment, actual GST liability less than estimated GST

Business A did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 by the due date of 31 Oct 2020.

Assuming that the estimated GST payable was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

On 10 Nov 2020, Business A declared its actual GST liability of $1,300. The GST and the late payment penalty were revised to $1,300 and $65 (5% penalty on $1,300) respectively.

Accounting Period Ending: 30 Sep 2020
Due Date: 31 Oct 2020

Date of NOA/ F5 Received Tax Amount Penalty Imposed
5 Nov 2020 $3,000 $150
10 Nov 2020 ($1,700) ($85)
Revised GST and 5% Penalty $1,300 $65

Example 2: Penalty imposed for late payment, actual GST liability more than estimated GST

Business B did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 by the due date of 31 Oct 2020.

Assuming that the estimated GST amount payable was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

On 10 Nov 2020, Business B declared its actual GST liability of $5,000. The GST and the late payment penalty were revised to $5,000 and $250 (5% penalty on $5,000) respectively.

Accounting Period Ending: 30 Sep 2020
Due Date: 31 Oct 2020

Date of NOA / F5 ReceivedTax AmountPenalty Imposed
5 Nov 2020$3,000$150
10 Nov 2020$2,000$100
Revised GST and 5% Penalty$5,000$250

Example 3: Penalty imposed for late payment, GST liability is $0

Business C did not submit the GST F5/F8 Return and payment for the accounting period ending 30 Sep 2020 by the due date of 31 Oct 2020.

Assuming that the estimated GST amount was $3,000, a late payment penalty of $150 (i.e. 5% x $3,000) would be imposed.

On 10 Nov 2020, Business C declared its actual GST liability of $0. Both the GST and the late payment penalty were revised to $0.

Accounting Period Ending: 30 Sep 2020
Due Date: 31 Oct 2020

Date of NOA / F5 ReceivedTax AmountPenalty Imposed
5 Nov 2020$3,000$150
10 Nov 2020($3,000)($150)
Revised GST and 5% Penalty$0$0

If the tax remains unpaid 60 days after the imposition of the 5% late payment penalty, an additional penalty of 2% per month may be imposed for each month that the tax remains unpaid and shall not exceed 50% of the unpaid tax.

Example 4: Penalty imposed for continued late payment

Business E filed a GST F5 Return for the period ending 30 Jun 2020 on 31 Jul 2020 but did not pay the GST liability of $10,000 declared. A late payment penalty notice was issued on 5 Aug 2020 and Business E eventually paid the GST and late penalties on 15 Dec 2020.

As the tax was unpaid 60 days from the late payment penalty notice, a 2% additional penalty was imposed for each completed month that the tax remained unpaid, starting from the date on which the tax became payable (i.e. 2% penalty was imposed for completed months of Aug, Sep, Oct and Nov 2020). The total penalty imposed was $1,300 (i.e. 5% penalty x $10,000 plus additional 2% penalties x $10,000 x 4 months).

Accounting Period Ending: 30 Jun 2020
Due Date: 31 Jul 2020

Date of NOA/ F5 Received 5% Penalty Imposed 2% Additional Penalty Imposed 
15 Dec 2020

$500

($10,000 x 5%)

$800

($10,000 x 2% x 4 months)

Appealing for waiver of late payment penalty

Appeals must be made online via our Request Penalty Waiver/ Extension of Time to File digital service at mytax.iras.gov.sg or using this Request for Penalty Waiver form.

Appeals will only be considered if:

  1. You have submitted all the required GST returns and paid the overdue tax in full, by the due date as stated in the late payment penalty notice; and
  2. No waiver has been granted in the past 2 calendar years or you have filed and paid on time for the past 2 years

Appointment of agents

If the GST remains unpaid, IRAS may appoint agents like your bank, tenant, lawyer or other 3rd parties with money due to you to recover the taxes owing.

When your business’ bank is appointed as the agent, you will experience inconvenience in using your bank accounts (e.g. being unable to access your bank accounts) until you have fully paid the GST owed.

Requests made for release of your banks from the agent appointment after 12pm on weekdays will only be processed on the next working day while requests cannot be processed on Saturdays, Sundays and Public Holidays.

Agents will be released from the appointment only after the tax and penalties have been paid in full.

Travel restrictions

If you are a sole proprietor or a partner, a Travel Restriction Order (TRO) can be issued, and you cannot travel out of Singapore until you pay the tax in full. 

View and retrieve the Notification for Release of TRO via mytax.iras.gov.sg 2 working days after your payment has been received to facilitate your travel at the immigration checkpoints when you leave Singapore. The notification will also be mailed to you within 10 days.

For non-NRIC holders, please note that it is your responsibility to ensure that you have a valid pass to remain in Singapore. Please approach the Immigration & Checkpoints Authority (ICA) to extend your stay in Singapore if you require more time to resolve your tax matters with IRAS. It is an offence to overstay in Singapore.

Checking tax balance and making payment

To check your current balance, log in to mytax.iras.gov.sg and select "View Account Summary”. You can make GST payments through various payment modes. The payment will be processed after 3 working days.

Difficulty paying your tax

If you face difficulties with your tax payment, you may apply for a longer payment plan via the Apply for Payment Plan digital service at mytax.iras.gov.sg.

If your payment plan is approved, you must follow the payment plan schedule. Otherwise, the plan will be cancelled and actions will be taken to recover the tax.

GIRO cancellation or termination

You are advised to maintain enough funds in your bank account. If your GIRO deduction is unsuccessful due to insufficient funds in the bank account, or incorrect limits set, etc., IRAS will cancel your GIRO plan. The balance of the unpaid taxes becomes due and payable immediately. You may be imposed a penalty if you do not settle the unpaid taxes promptly.

If you repeatedly default on your payment plan, IRAS may disallow your subsequent requests for a payment arrangement.

FAQs

I have appointed a tax agent to handle my GST. Who is responsible for my business’ GST matters?

As the business owner, you are still responsible and liable for your GST filing and payment matters in the event that your tax agent fails to settle the filing and payment issues promptly.

Why am I imposed with a 5% late payment penalty when I have arranged for GIRO payment?

If your GST F5/F8 is not filed by the due date, a 5% late payment penalty will be imposed on the estimated tax raised, even if you are on GIRO payment. The penalty will subsequently be revised based on the actual GST declared once you file your GST F5/F8.

Why are agents appointed to pay my tax?

If you fail to make payment for your overdue tax, IRAS may appoint your banks, tenant, employer, etc. as an agent to recover the unpaid tax.

Your appointed agent(s) will be required to pay moneys due to you to the Comptroller to settle your tax liabilities. The appointment will be released when the overdue tax is settled in full.

For more details on appointment of agents, you may use our Ask Jamie Virtual Assistant (available 24/7) at the side of this webpage.