Paying Estimated Tax in Singapore: What Businesses Need to Know

27 March 2025

Editor: ET

Timely and accurate ECI filing and tax payments help businesses in Singapore stay compliant with IRAS regulations.

For businesses operating in Singapore, understanding the process of paying estimated tax is crucial for maintaining compliance with the Inland Revenue Authority of Singapore (IRAS). Estimated Chargeable Income (ECI) filing determines the initial tax payable, and companies must ensure timely payments to avoid penalties.

Further Reading: Why Cloud Accounting is the Future for Singapore Businesses

Here's a breakdown of what you need to know about paying your estimated tax.

1. Understanding the Notice of Assessment (NOA)

Once IRAS processes your company’s ECI filing, you can view the Notice of Assessment (NOA) at mytax.iras.gov.sg. The NOA states the amount of tax payable and the deadline for payment. If your company filed nil ECI, no NOA will be issued, and no tax payment is required.

2. Handling Differences Between ECI and Chargeable Income

Sometimes, there may be a discrepancy between the ECI declared earlier and the final chargeable income reported in Form C-S, Form C-S (Lite), or Form C. Depending on the difference:

• If the final chargeable income is lower than the declared ECI → The company will receive an automatic tax refund for the excess amount paid.

• If the final chargeable income is higher than the declared ECI → The company must pay the additional tax within 1 month from the NOA date.

• Significant discrepancies may require an explanation to IRAS, so accurate reporting is essential.

3. Payment Methods for Estimated Tax

Companies can pay their estimated tax using two main methods:

a) Payment by GIRO

• Signing up for GIRO allows businesses to make tax payments in instalments.

• To qualify for GIRO instalment plans, companies must sign up at least 3 weeks before filing ECI and receive approval before the payment due date.

• If GIRO approval is delayed, the full tax amount must be paid within 1 month from the NOA date.

• The status of a company’s GIRO application can be checked via the Corporate Income Tax integrated phone service.

b) Electronic Payment Methods

• Businesses can pay through Internet Banking, Phone Banking, NETS, and other electronic payment options.

• Companies facing financial difficulties in paying tax can explore support measures offered by IRAS.

Further Reading: Understanding Estimated Chargeable Income (ECI) Filing for Singapore Businesses

Timely and accurate ECI filing and tax payments help businesses in Singapore stay compliant with IRAS regulations. Whether paying via GIRO or electronic methods, companies should plan ahead to avoid penalties and take advantage of instalment payment options.