Late Payment or Non-Payment of Corporate Income Tax

Key Requirements

A 5% penalty applies to tax unpaid at the due date. If it remains unpaid 60 days after that penalty is imposed, an additional 1% per completed month may apply, capped at a further 12% of unpaid tax. IRAS may appoint a bank, tenant or other relevant agent to recover arrears and may take legal action. Paying only after an objection outcome risks penalties in the meantime. If the assessment is revised, the tax and related penalty position can be recalculated and excess payment refunded. Check the outstanding balance and settle or seek an agreed payment arrangement before the deadline; the existence of a dispute is not itself a payment extension.

Check the Balance Before Choosing the Next Step

Start with the assessment and the current tax-account balance. In myTax Portal, View Account Summary shows the outstanding position. Keep the tax principal, late-payment penalties and any separate late-filing composition amount distinct when reviewing what has been paid. A payment receipt should be reconciled with the account rather than treated as proof that every obligation is cleared.

If payment is difficult, IRAS provides an Apply/Manage GIRO Plan service to request a longer payment arrangement. A request alone is not an approved schedule. Once a plan is approved, follow its instalments: failure to do so can lead to cancellation, penalties and recovery action. Waiting for an objection outcome is also not a payment extension.

Penalty-waiver requests have separate conditions. IRAS considers appeals only after the overdue tax has been paid in full by the penalty notice’s deadline and where no waiver was granted in the preceding two calendar years up to the appeal date. Payment must be reflected in the tax account. Use the Appeal Penalty Waiver service rather than assuming eligibility guarantees acceptance.

If IRAS has appointed the company’s bank as an agent, full settlement of tax and penalties is required before release. Review the late-payment and recovery guidance ↗ for the account-release procedure and processing hours; the bank may remain restricted while the release is being processed.