Taxpayers must file their tax returns and pay on time. Each year, a minority of taxpayers fail to do so. Penalties may be imposed on those who do not comply with their filing or payment obligations.

Taxpayers are given one month from the date of the Notice of Assessment (NOA) to pay the tax. If the tax is not paid or is paid late, the following penalties may be imposed on the tax unpaid after due date:

• 5% penalty

• 1% additional penalty

• When the 5% penalty has been imposed, a Demand Note will be issued, showing the unpaid tax and penalty. Payment has to be made within one month.

For more details, please refer to https://www.iras.gov.sg/taxes/other-taxes/bodiesofpersons/filing-clubs-and-associations-income-tax/late-filing-or-non-filing-of-tax-returns.