Payment Plans and Financial Difficulty
Written in plain language for general understanding. This is educational content, not legal advice. Based on Singapore Acts of Parliament, subsidiary legislation, and official government guidance.
Singapore National Law
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 should you do?
- 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.
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