Payment Due Date and Consequences of Late or Non-Payment
The majority of companies pay their taxes on time. Corporate Income Tax is due one month from the date of the Notice of Assessment (NOA). Late or non-payment may result in penalties and recovery actions by the Inland Revenue Authority of Singapore (IRAS).
Actions Taken for Late or Non-Payment
If payment is not made by the due date, IRAS may take the following actions:
- Impose late payment penalties.
- Appoint agents (e.g., company’s bank, tenant, or lawyer handling property sales) to recover overdue tax.
- Take legal action.
Above listings is not exhaustive.
Late Payment Penalty
A 5% late payment penalty is imposed if full payment is not received by the due date.
Example 1: Penalty for Late Payment
Date of NOA | Corporate Income Tax Due Date | Tax Payable | 5% Late Payment Penalty Imposed |
2 Jun 2025 | 2 Jul 2025 | $10,000 | $500 (5% of $10,000) |
If an objection is filed, companies must still pay the tax assessed as shown in the NOA. Any excess payment will be refunded if the assessment is revised.
Example 2: Penalties and Refunds When an Objection is Filed
Date of NOA | Due Date on NOA | Tax Amount | 5% Late Payment Penalty Imposed |
1 Aug 2025 | 1 Sep 2025 | $10,000 | $500 |
9 Oct 2025 | 1 Sep 2025 | ($8,700) | ($435) |
Revised Tax and 5% Penalty | $1,300 | $65 |
Additional Penalty for Continued Non-Payment
If the tax remains unpaid 60 days after the 5% penalty is imposed, an additional penalty of 1% per month may be applied, up to a maximum of 12% of the unpaid tax.
Example 3: Penalty for Continued Late Payment
Company Z failed to pay a tax payable of $10,000 by the due date and received a late payment penalty notice dated 1 Jul 2025. The due date for payment of tax and penalty (i.e., $10,500) was 1 Aug 2025.
As the tax remained unpaid for one completed month after 60 days, an additional 1% penalty was imposed on 1 Oct 2025 and continued monthly until payment was made.
Late Payment Penalty Notice Date | Payment Date | 5% Late Payment Penalty Imposed | Additional 1% Penalty Imposed |
1 Jul 2025 | 15 Nov 2025 | $500 (5% of $10,000) | $200 (1% of $10,000 for 2 months) |
Total penalty imposed: $700.
Appealing for Waiver of Late Payment Penalty
Appeals must be submitted online via myTax Portal at mytax.iras.gov.sg under the Appeal Penalty Waiver digital service.
Required Information for Appeal:
- Year of Assessment
- Authorised appellant’s designation
- Authorised appellant’s contact number
- Authorised appellant’s email address
Appeal Eligibility Criteria:
- Full payment of the overdue tax must have been made by the due date stated in the penalty notice.
- No penalty waiver has been granted in the past two calendar years.
For payment modes and processing times, refer to Corporate Income Tax payments on the IRAS website.