In the highly regulated business environment of Singapore, “better late than never” is a risky philosophy when it comes to the Inland Revenue Authority of Singapore (IRAS). As we move through 2026, IRAS has enhanced its digital tracking, making it easier for the authorities to identify and penalize non-compliant entities almost instantly.
For founders and finance professionals, missing the 30 November filing deadline for Form C-S/C or the 3-month window for Estimated Chargeable Income (ECI) can lead to a snowball effect of financial and legal headaches. At Hallmark Corporate Services, we believe that understanding the cost of delay is the first step toward better compliance.
1. The Immediate Consequence: Estimated Notice of Assessment (NOA)
If your company fails to file its tax return by the deadline, IRAS won’t wait for you. Instead, they will issue an Estimated Notice of Assessment.
- The Risk: This estimate is often based on your previous year’s performance or industry benchmarks, frequently resulting in a much higher tax bill than your actual liability because it does not account for current-year expenses or deductions.
- The Rule: You are legally required to pay this estimated tax within one month, even if you disagree with the amount and plan to file an objection.
2. The Monetary Cost: Composition Sums
Instead of immediate prosecution, IRAS typically offers companies an “out”—the option to pay a Composition Sum.
- The Amount: Depending on your company’s past compliance record, this fine can range from S$200 to S$5,000 per offence.
- The Trap: Paying the composition sum only settles the penalty; it does not exempt you from filing the outstanding tax return. You must still submit the overdue documents to satisfy legal requirements.
3. Late Payment Penalties
Late filing is often followed by late payment. If you do not pay the tax amount stated in your NOA (actual or estimated) by the due date:
- Initial Penalty: An immediate 5% penalty is imposed on the unpaid tax.
- Ongoing Penalties: If the tax remains unpaid 60 days after the initial 5% penalty, an additional 1% penalty is added every month, up to a maximum of 12%.
4. Legal Summons and Director Liability
In 2026, persistent non-compliance escalates quickly. If the composition sum is ignored and the return remains unfiled:
- Notice to Attend Court: The company and its directors may be issued a court summons.
- Hefty Fines: Upon conviction, the court can impose a fine of up to S$5,000 and a penalty that is double the amount of tax assessed.
- Warrant of Arrest: In extreme cases where directors fail to attend court, a warrant of arrest may be issued.
How to Resolve a Late Filing in 2026
If you find yourself on the wrong side of the deadline, take these three steps immediately:
- File Immediately: Use myTax Portal to submit your Form C-S/C and financial statements. Filing reduces the severity of further actions.
- Apply for a Waiver: If this is your first offence and you have a valid reason (e.g., medical emergency or unforeseen administrative upheaval), you can submit an Appeal for Penalty Waiver via the digital services on myTax Portal.
- Request an Extension: If you know you will be late before the deadline passes, you can apply for an Extension of Time (EOT), though these are granted sparingly in 2026.
Conclusion: Compliance is a Competitive Advantage
In 2026, a clean tax record is more than just avoiding fines—it is a signal of business health to investors, banks, and partners. At Hallmark Corporate Services, we act as your compliance shield. Would you like our experts to handle your appeal and get your tax filings back on track for 2026?