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 a late payment penalty
- Appoint agents like your bank, employer, tenant or lawyer (handling the sale of any of your property) to recover the overdue tax
- Initiate the sale of the said property through a public auction to settle the overdue tax
The above list is not exhaustive.
Late payment penalty
Unless you are on an approved instalment plan, a 5% late payment penalty will be imposed on the unpaid tax if full payment is not received by the due date.
Example 1: Penalty imposed for late payment
Date of the Property Tax bill is 15 Dec 2022 (for year 2023 Property Tax) and the tax payable is $1,000.
5% late payment penalty of $50 (i.e. 5% x $1,000) was imposed as the tax was still not paid by 31 Jan 2023.
|Date of Property Tax Bill||Property Tax Due Date||Tax Payable||5% Late Payment Penalty Imposed|
|15 Dec 2022||31 Jan 2023||$1,000||$50|
If you have filed an objection and are awaiting the outcome, you still must pay the tax assessed as shown on the bill. Excess payment will be refunded to you if the bill is revised.
Example 2: Penalties and refunds when an objection is filed
Property owner received the tax bill, with a tax payable of $1,300, dated 15 Dec 2022. The due date for payment is 31 Jan 2023.
Property owner filed an objection and did not pay the tax. As no payment was received by the due date, a 5% late payment penalty of $65 was imposed.
Property owner paid the tax and penalty on 1 Mar 2023. On 9 Mar 2023, the bill was amended to $200 and the late payment penalty was revised to $10 (5% late payment penalty on $200) accordingly. A refund of $1,155 was made to the property owner.
|Date of Bill||Due Date on Bill||Tax Amount||5% Late Payment Penalty Imposed|
|15 Dec 2022||31 Jan 2023||$1,300||$65|
|9 Mar 2023||31 Jan 2023||($1,100)||($55)|
|Revised Tax and 5% Penalty||$200||$10|
Appealing for waiver of late payment penalty
Appeals must be made online via our Appeal Penalty Waiver digital service at mytax.iras.gov.sg.
You will need the following information to complete the appeal for waiver of penalty request online:
- Property Tax Period
- Contact number
Appeals will only be considered if:
- You have paid the overdue tax in full*, by the due date as stated in the late payment penalty notice; and
- No waiver has been granted in the past 2 calendar years up to date
*Payment must be reflected in your tax account.
Appointment of agents
If the tax remains unpaid, IRAS may appoint agents like your bank, employer, tenant, lawyer or other 3rd parties with money due to you to recover the taxes owing.
When your 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 your Property Tax.
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.
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 Property Tax payments through various payment modes. The payment will be processed after 3 working days.
If you are unable to pay the tax in full, you may apply for up to 12 interest-free monthly instalments via GIRO.
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.
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.
Can I sign up for GIRO?
Yes, you can sign up for GIRO. Learn more about the different ways to apply for GIRO.
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, you can re-activate your GIRO arrangement via the Apply for Payment Plan digital service at mytax.iras.gov.sg, before the payment due date stated in the late payment penalty notice.
You must follow the payment plan schedule if your payment plan is approved. If you repeatedly default on your payment plan, IRAS may not approve your subsequent requests for payment arrangements.
Why was I imposed with a 5% late payment penalty when I have arranged for GIRO payment?
Your GIRO application must be approved before the payment due date (i.e. 1 month from the date of the Tax Bill) to avoid late payment penalties from being imposed.
The processing time required for GIRO arrangements to be set up are as follows:
- within the next working day for re-activation of GIRO via myTax Portal (for taxpayers with previous arrangement set up with IRAS)
- within 3 working days for new online applications via myTax Portal, internet banking and AXS stations
- within 3 weeks for new applications via hardcopy GIRO application forms
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.