Consequences for late payment or non-payment of taxes
IRAS may take the following actions if you fail to pay by the due date:
- Impose late payment penalties
- Appoint agents like your bank, tenant or lawyer (handling the sale of any of your property) to recover the amount owed
- For sole proprietors or partners, we can issue a Travel Restriction Order (TRO) to stop you from leaving Singapore
- Take legal action
The above list is not exhaustive.
Late payment penalty
A 5% late payment penalty will be imposed if payment is not received by the due date.
If you have filed an objection and are awaiting the outcome, you must still pay the tax assessed as shown in the Directive by the payment due date. Excess payment will be refunded to you/your employee if the Directive is revised.
Date of the Directive To Pay Tax is 4 Jun 2025 and the Directive amount is $5,000. 5% penalty of $250 (i.e. 5% x $5,000) is added when the tax is not paid by 14 Jun 2025.
| Date of Directive | Directive Due Date | Tax Payable | 5% Penalty Imposed |
|---|---|---|---|
| 4 Jun 2025 | 14 Jun 2025 | $5,000 | $250 |
Additional penalties of 1% per month may be imposed if the tax remains unpaid 1 month after the Directive date. The 1% additional penalty will be imposed for each completed month that the tax remains unpaid, up to a maximum of 12% of the unpaid tax.
An employer sought tax clearance and received a Directive to pay the tax amount of $5,000 but did not make payment by the due date, and received a late payment penalty notice dated 1 Jul 2025.
The due date for payment of tax and penalty of $5,250 on the late payment penalty notice was 1 Aug 2025 (one month from the date of late payment penalty notice).
As the tax was unpaid for 1 completed month after 60 days from the late payment penalty notice date, a 1% additional penalty was imposed on 1 Oct 2025. 1% penalty will continue to be imposed for each additional month that the tax remained unpaid.
The employer eventually made payment on 15 Nov 2025.
The total penalty imposed was $350 (5% late payment penalty x $5,000 + 1% additional penalty x $5,000 x 2 months).
| Late Payment Notice Date | Payment date | 5% Late Payment Penalty imposed | Additional 1% penalty imposed |
|---|---|---|---|
| 1 Jul 2025 | 15 Nov 2025 | $250 ($5,000 x 5%) | $100 ($5,000 x 1% x 2 months) |
Appealing for waiver of late payment penalty
You can appeal for a waiver on the late payment penalty via mytax.iras.gov.sg > myTax mail.
Appeals will only be considered if:
- You have paid the overdue amount in full, by the due date as stated in the late payment penalty notice; and
- No waiver had been granted in the past 2 calendar years up to date.
Appointment of agents
If the tax remains unpaid, IRAS may appoint agents such as your bank, tenant, lawyer or other 3rd parties with money due to you to recover the outstanding taxes.
When your bank is appointed as 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 tax.
Requests made for the release of your banks from the agent appointment made after 12pm on weekdays will only be processed on the next working day. Please note that 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 a Travel Restriction Order (TRO) is issued, 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.
For non-NRIC holders, please note that it is your responsibility to ensure that you have a valid pass to remain in Singapore. If you require more time to resolve your tax matters with IRAS, please approach the Immigration & Checkpoints Authority (ICA) to extend your stay. Overstaying in Singapore is an offence.
Making payment
Please quote the 14-digit payment slip number (enclosed with the Directive) when making payment for the Directive using the preferred payment modes. GIRO payment mode is not applicable for payment of the Directive amount.
FAQs
Payment must be made by the due date stated in the Directive. If payment is not received by the due date, a 5% late payment penalty will be imposed. Chat with us if you would like to request an extension of time to pay.
Employers of non-Singapore Citizen employees are required to withhold all monies due to the employee for tax clearance, when the employee ceases employment or plans to leave Singapore for more than 3 months. Please refer to Tax Clearance for Foreign & SPR Employees (IR21) for more information.
If you did not withhold monies due to your employee and do not have valid reasons for your failure to withhold monies, you may be held liable for the tax that is owed by your employee.
You should make payment as per the first Directive to avoid any late payment penalty.