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.