IRAS understands that some taxpayers may occasionally make errors in their tax returns due to lack of care or awareness of their tax obligations. The IRAS Voluntary Disclosure Programme (VDP) encourages taxpayers who have made errors in their tax returns
to come forward voluntarily, in a timely manner, to correct their errors. IRAS is prepared to reduce penalties for voluntary disclosures which meet the qualifying conditions.
On this page:
Qualifying conditions
The IRAS VDP applies to Income Tax (including cash payouts / bonus), GST, Withholding Tax and Stamp Duty. To qualify for IRAS VDP, you need to submit a voluntary disclosure that is:
- Accurate and complete; and
- Timely and self-initiated.
A voluntary disclosure is considered timely and self-initiated under either one of the following conditions:
- before you receive a query from IRAS relating to your tax or cash payout / bonus matters; or
- before you receive notification from IRAS on the commencement of an audit or investigation on your tax or cash payout / bonus matters.
After submitting a voluntary disclosure, you must also:
- Cooperate fully with IRAS to correct the errors made; and
- Pay or make arrangements with IRAS to pay additional taxes or amount exceeding cash payout / bonus than entitled to and penalties imposed (if any), and honour such arrangements till all payments are made.
For examples on qualifying and non-qualifying Voluntary Disclosures, please refer to Annex A and Annex B respectively of the e-Tax Guide on IRAS' Voluntary Disclosure Programme (PDF, 529KB).
Reduced penalties
Disclose errors within grace period to avoid penalties
| Voluntary Disclosure made | Penalty Treatment |
|---|---|
Within the 1 year grace period from the statutory filing deadline, and the qualifying conditions are met | No penalty imposed |
After the 1 year grace period from the statutory filing deadline and qualifying conditions are met | Reduced penalty of:
|
For late stamping or underpayment of Stamp Duty and the qualifying conditions are met | Reduced penalty of:
No grace period for Stamp Duty |
Example 1: Computation of reduced penalty on errors voluntarily disclosed by a company in its Corporate Income Tax Return within and after the grace period
Company A discovered an error in its YA 2022 Corporate Income Tax Return, after the statutory filing due date on 30 Nov 2022. The tax undercharged was $1,000. Company A voluntarily disclosed its errors and met all the qualifying conditions under the VDP.
The table below shows the reduced penalty amount (if applicable) depending on when Company A voluntarily disclosed its errors:
| Date of voluntary disclosure of errors | Date of disclosure is within the 1 year grace period (i.e. anytime between 1 Dec 2022 and 30 Nov 2023) | Date of disclosure is 1 year after the grace period (i.e. anytime between 1 Dec 2023 and 30 Nov 2024) | Date of disclosure is 3 years after the grace period (i.e. anytime between 1 Dec 2025 and 30 Nov 2026) |
|---|---|---|---|
|
Amount of reduced penalties imposed (if any) |
No penalty will be imposed. |
A reduced penalty of $50 (5% X $1,000) will be imposed. |
A reduced penalty of $150 (5% X $1,000 X 3 years) will be imposed. |
| Explanation | Company A voluntarily disclosed its errors within the 1-year grace period from the statutory filing deadline of 30 Nov 2022 and met all the qualifying conditions under the VDP. Hence, no penalty is imposed on the error. | Company A voluntarily disclosed its errors 1 year after the grace period ended on 30 Nov 2023. Hence, a reduced penalty of 5% of the tax undercharged was imposed on the company. | Company A voluntarily disclosed its errors 3 years after the grace period ended on 30 Nov 2023. Hence, a reduced penalty of 15% of the tax undercharged (i.e. 5% penalty for each year that the errors were late in being rectified) was imposed on the company. |
Example 2: Computation of reduced penalty on errors voluntarily disclosed by an individual in his Individual Income Tax Return within and after the grace period
Mr Andrew discovered that he had omitted to declare an income of $30,000 in his Individual Income Tax Return for the Year of Assessment (YA) 2023, after the filing due date on 18 Apr 2023. The tax undercharged was $6,600. Mr Andrew made a voluntary disclosure and met all the qualifying conditions under the VDP.
The table below shows the reduced penalty amount (if applicable) depending on when Mr Andrew voluntarily disclosed the errors:
| Date of voluntary disclosure of errors | Date of disclosure is within the 1 year grace period (i.e. anytime between 19 Apr 2023 and 18 Apr 2024) | Date of disclosure is 1 year after the grace period (i.e. anytime between 19 Apr 2024 and 18 Apr 2025) | Date of disclosure is 3 years after the grace period (i.e. anytime between 19 Apr 2026 and 18 Apr 2027) |
|---|---|---|---|
Amount of reduced penalties imposed (if any) | No penalty will be imposed. | A reduced penalty of $330 (5% X $6,600) will be imposed. | A reduced penalty of $990 (5% X $6,600 X 3 years) will be imposed. |
| Explanation | Mr Andrew voluntarily disclosed the errors within the 1-year grace period from the statutory filing deadline of 18 Apr 2023 and met all the qualifying conditions under the VDP. Hence, no penalty is imposed on error. | Mr Andrew voluntarily disclosed the errors 1 year after the grace period ended on 18 Apr 2024. Hence, a reduced penalty of 5% of the tax undercharged was imposed. | Mr Andrew voluntarily disclosed the errors 3 years after the grace period ended on 18 Apr 2024. Hence, a reduced penalty of 15% of the tax undercharged (i.e. 5% penalty for each year that the errors were late in being rectified) was imposed. |
Voluntary Compliance Initiatives
You will enjoy the following benefits, such as an extended grace period or waiver of penalties for voluntary disclosure of errors, when you adopt the following voluntary compliance initiatives:
| Corporate Tax and Withholding Tax | Tax Governance Framework (TGF) A one-time extended grace period of 2 years for errors voluntarily disclosed by the company within 2 years from the date of IRAS’ approval of the company’s TGF application. Tax Risk Management and Control Framework for Corporate Income Tax (CTRM) A one-time waiver of penalties for voluntary disclosure of prior years’ errors for businesses accorded the “CTRM status” |
| Goods and Services Tax | Tax Governance Framework (TGF)
Assisted Compliance Assurance Programme
GST Assisted Self-help Kit (ASK)
|
Voluntary disclosure of past actions involving wilful intent to evade taxes or obtain excessive cash payout/bonus
Taxpayers who commit offences involving wilful intent to evade taxes or obtain excessive cash payouts/bonus, including persons who assisted in such acts, may face prosecution, and be jailed up to 7 years and/or fined up to $50,000, and penalised up to 400% of tax undercharged/unpaid.
When you come forward and voluntarily disclose past actions involving a wilful intent to evade taxes or obtain excessive cash payouts/bonus, your offences may be compounded at a reduced penalty rate of 200% in lieu of prosecution. This treatment applies to Income Tax, Withholding Tax and GST.
However, if you do not meet the qualifying conditions for IRAS' VDP, you may be charged in court for your tax evasion offences.
For guidelines to differentiate cases involving wilful intent to evade taxes or obtain excessive cash payout/bonus, please refer to Annex F of the e-Tax Guide on IRAS' Voluntary Disclosure Programme (PDF, 529KB).
Making a voluntary disclosure
a) For voluntary disclosure of errors relating to tax returns, you can inform us in the following ways:
| Tax Type | How to Inform IRAS |
|---|---|
| Individual Income Tax | For Self-employed and Partnerships Self-employed persons, precedent partners of partnership or tax agents making a voluntary disclosure to correct the errors made on their own past tax filings or on behalf of their clients may make the voluntary disclosure by completing this form. The required information and supporting documentation are detailed in Annex B of e-Tax Guide. For all individuals excluding self-employed persons and partners of partnerships Email the required information and supporting documentation (detailed in Annex B of e-Tax Guide) by logging in to myTax Portal:
Tax agents / employers making a voluntary disclosure of errors for their clients / employees may disclose the errors by completing this form. |
| Corporate Tax |
|
| GST | Send an electronic request to IRAS for GST F7 (Disclosure of Errors on GST Return)
and e-File the GST F7 at any time, up to 14 days from the date of request for the GST F7
For GST late registrants, register for GST online at myTax Portal
|
| Withholding Tax | Submit S45 VDP application |
| Stamp Duty | Stamp document via the e-Stamping system |
b) For voluntary disclosures of past actions involving a wilful intent to evade taxes or obtain excessive cash payout/ bonus, you can either:
- Email IRAS at [email protected]; or
- Write in to:
Inland Revenue Authority of Singapore
Revenue House
55 Newton Road
Singapore 307987