Payment Plans and Financial Difficulty in Singapore
Reviewed by the Commoner Law Editorial Team. Sourced from Singapore Acts of Parliament, subsidiary legislation, and official government guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
If you cannot pay your tax on time, IRAS offers options to help:
- GIRO instalments: Sign up for GIRO to spread your tax bill over 12 monthly instalments (interest-free if set up before the payment due date).
- Ad-hoc instalment plans: If you are facing financial difficulty, you can apply for a customised payment plan. Contact IRAS and explain your situation.
- Late payment penalty: A 5% penalty is imposed if tax is not paid by the due date. An additional 1% per month may be charged for continued non-payment.
- Enforcement: IRAS can issue a garnishee order (directing your employer or bank to pay IRAS directly), or take legal proceedings.
When does it apply?
- You have received a tax bill that you cannot pay in full by the due date.
- You are experiencing financial hardship (unemployment, medical expenses, business failure).
What to Do If You Cannot Afford to Pay Your IRAS Tax Bill on Time in Singapore
- Contact IRAS before the due date — proactive communication is key. Call the IRAS helpline or apply online for an instalment plan.
- If you have already missed the deadline, contact IRAS as soon as possible to arrange payment.
- Set up GIRO for future years to automatically spread payments.
- If IRAS issues a garnishee order, you may negotiate a payment arrangement to have it lifted.
What should you NOT do?
- Don't ignore tax bills — the penalties compound and enforcement actions escalate quickly.
- Don't wait for IRAS to contact you — they are more willing to help if you reach out first.
- Don't borrow from unlicensed moneylenders to pay tax — approach IRAS for an instalment plan instead.
Common Questions
Can I pay my Singapore tax bill in instalments?
Yes. Sign up for GIRO to spread your tax bill over 12 monthly instalments, interest-free if set up before the payment due date. If you face financial difficulty, you can apply to IRAS for a customised ad-hoc payment plan. Contact IRAS before the due date — they are more willing to help if you reach out proactively.
What happens if I pay my IRAS tax late in Singapore?
A 5% penalty is imposed if tax is not paid by the due date, and an additional 1% per month may be charged for continued non-payment. IRAS can also issue a garnishee order directing your employer or bank to pay IRAS directly, or take legal proceedings. If a garnishee order is issued, you may still negotiate a payment arrangement to have it lifted.
What should I do if I cannot afford my Singapore tax bill at all?
Contact IRAS as soon as possible — call the helpline or apply online for an instalment plan. Do not ignore tax bills, as penalties compound and enforcement actions escalate quickly. Do not borrow from unlicensed moneylenders to pay tax — approach IRAS for an instalment plan instead.
When does it apply — payment plans and financial difficulty?
You have received a tax bill that you cannot pay in full by the due date.You are experiencing financial hardship (unemployment, medical expenses, business failure).
What should I do if I cannot pay my Singapore income tax bill by the IRAS due date and need a payment plan?
Contact IRAS before the due date — proactive communication is key. Call the IRAS helpline or apply online for an instalment plan.If you have already missed the deadline, contact IRAS as soon as possible to arrange payment.Set up GIRO for future years to automatically spread payments.If IRAS issues a garnishee order, you may negotiate a payment arrangement to have it lifted.
What should you NOT do — payment plans and financial difficulty?
Don't ignore tax bills — the penalties compound and enforcement actions escalate quickly.Don't wait for IRAS to contact you — they are more willing to help if you reach out first.Don't borrow from unlicensed moneylenders to pay tax — approach IRAS for an instalment plan instead.