IRAS considers penalty waiver appeals only through the Appeal Penalty Waiver digital service on myTax Portal, and the outcome is instant. Whether your company qualifies depends almost entirely on conditions you must meet before you apply. For a GST late submission penalty, the outstanding returns must be filed, all overdue GST paid, and the business must have filed on time for the past year. For a corporate tax late payment penalty, the overdue tax must have been paid in full by the date on the penalty notice, with no waiver granted in the past two calendar years. For a composition amount for a late Form C-S or Form C, the return must have been filed before the deadline in the composition offer, with on-time filing for the past two years. Meet the conditions first, then appeal.
Raffles Corporate Services works with a panel of experienced Singapore law firms who offer cost-effective and efficient legal service and advice. This article is general information only and is not legal advice.
The waiver window closes with the deadline on the notice. Most conditions are tied to filing or paying by a date IRAS has already set. Miss it and the waiver is usually no longer available, and a late filing can move on to a court summons. Deal with the notice the week it arrives: file, pay, then appeal.
The conditions IRAS publishes
| Penalty | Appeal is considered only if |
|---|---|
| GST late submission penalty (S$200 a month, up to S$10,000 per return) | All outstanding GST returns are submitted; all overdue GST is paid and shows in the tax account; and GST returns were filed on time for the past 1 year |
| Corporate income tax late payment penalty (5%, then 1% a month up to 12%) | The overdue tax is paid in full, and shows in the tax account, by the due date on the late payment penalty notice; and no waiver was granted in the past 2 calendar years |
| Composition amount for a late Form C-S, Form C-S (Lite) or Form C | The outstanding return and documents are filed, and show in the tax account, before the due date in the offer of composition; and returns were filed on time for the past 2 years |
Sources: IRAS pages on late filing of GST returns, late payment of corporate income tax and late filing of corporate income tax returns. Each of those pages points to the same Appeal Penalty Waiver digital service and asks taxpayers not to appeal through myTax Mail, email or calls.
How to make the appeal
- Read the notice. Identify which penalty it is, the period or Year of Assessment, and the due date.
- Meet the conditions. File every outstanding return and pay every overdue amount. Wait until the filing and payment show in the tax account; IRAS says payments take up to 3 working days to process.
- Log in to myTax Portal through Corppass with an authorised user, and open Appeal Penalty Waiver.
- Have the details ready: the accounting period (for GST) or Year of Assessment (for corporate tax), and the authorised appellant’s designation, contact number and email.
- Submit. IRAS says the service takes about 3 to 5 minutes, the outcome is instant, and a successful waiver appears in the tax account within 3 working days.
- Keep a record of the outcome in the company’s tax file.
When a waiver is not available
- The company has a recent record of late filing or a waiver in the last two years. The condition is not met, however good the reason this time. Pay the penalty and fix the process.
- The return is still outstanding. Paying a GST late submission penalty does not stop legal action; IRAS says legal action may still follow if the return is not filed.
- A Notice to Attend Court has been issued. The question is no longer a waiver. To avoid attending court, the company must file and pay the composition amount by the deadline in the notice. See IRAS court summons for unfiled tax returns.
- The penalty is for an incorrect return rather than a late one. Different rules apply, and a voluntary disclosure may reduce it. See IRAS voluntary disclosure.
Example
Example only, not a client case. A company files its GST returns quarterly. Its bookkeeper left, and the return for the quarter ending 31 March was filed on 20 June, so the company was charged a S$200 late submission penalty plus S$200 for the completed month. It had filed every return on time for the previous year. Once the return is filed and the GST is paid and shows in the account, the company appeals online and receives an instant outcome. If the same thing happens again within a year, the on-time filing condition will not be met.
Frequently asked questions
Can we appeal by writing a letter explaining what happened?
IRAS directs these appeals to the Appeal Penalty Waiver digital service and asks taxpayers not to use other channels. The decision turns on the published conditions.
Can we get an extension to file a GST return instead?
IRAS says no extension will be granted for GST returns, because one month after the end of the period is a reasonable due date.
Is an ACRA late filing penalty appealed the same way?
No. ACRA penalties are separate. See appealing an ACRA late filing penalty.
More on the tax and GST hub.
Need help with an IRAS penalty?
If your company has received an IRAS penalty, composition offer or late payment notice, contact the Raffles Corporate Services team at [email protected] or on WhatsApp at +65 8501 7133. We will help you understand the notice and its deadline, prepare and file the outstanding GST returns or Form C-S, and set up a filing calendar so the conditions for future waivers are met. Where a tax adviser or, for a court matter, an adviser from one of our associated law firms is needed, we will arrange it. This article is general information, not tax advice.
Kevin Yeo, Raffles Corporate Services