Withholding Tax: Voluntary disclosure of errors for reduced penalties

Key requirements

Disclose accurately and completely, cooperate and pay additional tax or honour an agreed arrangement. For qualifying ordinary errors within the one-year grace period from the statutory filing deadline, no penalty is imposed. After the period, withholding uses a flat reduced 5% on outstanding tax, unlike the per-year income tax calculation. Intentional evasion is addressed separately. Check the filing date, discovery circumstances and whether IRAS has already raised the relevant matter. A casual amendment without the required disclosure information does not necessarily satisfy every programme condition.