What is a GIRO payment plan in Singapore? Eligibility & Installment Plan

GIRO (General Interbank Recurring Order) is an automated payment system that allows individuals and businesses to make or receive payments directly from their bank accounts. It eliminates the need for manual transactions, ensuring timely and hassle-free payments. In this guide, we’ll explore how GIRO works, its types, and how to set it up.

What is a GIRO payment plan? 

General Interbank Recurring Order is an automated electronic payment system that facilitates seamless transactions between businesses, customers, and billing organisations. It allows individuals and companies to make or receive payments directly from their bank accounts, reducing the hassle of manual transactions.

How Does GIRO Work?

GIRO operates as a three-way arrangement involving:

• You (the payer) – An individual or business making payments.
• Your bank – The financial institution that processes the payments.
• The Billing Organisation (BO) – A government agency or private company that receives payments.

Types of GIRO Plans in Singapore 

GIRO offers two key services for both individuals and businesses:

• GIRO Direct Debit: This allows you to authorise a Billing Organisation to withdraw funds directly from your designated bank account for recurring bill payments. Ideal for utility bills, insurance premiums, and tax payments, it ensures automatic and on-time settlements.
• GIRO-on-Demand: Some banks offer this service, which requires your approval for each individual GIRO payment. eGIRO payments can be authorised via phone banking or internet banking, giving you more control over each transaction.

Suggested Read: e-Invoicing in Singapore: Applicability, Limit, Guidelines & Implementation Date

How to Set Up a GIRO Plan in Singapore?

GIRO application forms are available for two types of entities: individuals and businesses.

For Individuals

1. Log in to myTax Portal: Go to myTax Portal. Then, select "Personal Tax". You will be redirected to the login page.
2. Log in via Your Preferred Method: You can log in using either of the following methods:
   Singpass App: Use the Singpass mobile app to scan the QR code provided. After completing authentication, you will be redirected to the myTax Portal.
   Password Login: Enter your Singpass ID and password. Click "Log in" to access myTax Portal.
3. To apply for a GIRO Plan, Go to "Account." Then, click on "Apply/Manage GIRO Plan."
4. Choose Your Bank Account: To reinstate an existing GIRO arrangement, select your preferred bank under "Bank Account(s) in Our Record" and click "SELECT." To apply for a new GIRO arrangement, select your bank from the drop-down list under "New Bank Arrangement for GIRO" and click "SELECT."
5. Select Tax Accounts & Payment Plan: Tick the relevant tax account(s), such as Individual Income Tax, Property Tax, etc. Then, choose the GIRO plan option: monthly or one-time yearly. Adjust the number of installments using the "+" or "–" button. Click "CONTINUE."
6. Note: Increasing the number of installments beyond the standard cycle may result in penalties for both Individual Income Tax and Property Tax.
7. Request for Extended Instalment Plan (If Applicable): If you request an extended installment plan, select your reason. If you choose "Other", provide additional details in the text box. Then, tick the confirmation checkbox and click "CONTINUE".
8. Review & Submit the Application: Review your GIRO selection. Then, tick the checkbox for declaration. Click "CONTINUE". If reinstate GIRO, you’ll see an acknowledgment page. But if applying for a new GIRO, you’ll be redirected to your bank’s portal.
9. Complete GIRO Setup at Your Bank: Click "LEAVE PAGE" to proceed to your bank’s online portal. Follow the internet banking procedures to authorise the GIRO arrangement. Once completed, you’ll be redirected back to myTax Portal for acknowledgement. 
10. Check Your Application Status: An acknowledgment page will be displayed once completed. Approved plans can be viewed under "Account > View GIRO Plan" the next working day. If the status is "In Progress", it is under review by the bank. No further action is required.

For Businesses (Non-Individuals)

1. Log in to myTax Portal: Select "Business Tax" to log in. Then, under "Account", click "Apply/Manage GIRO Plan". Click "Apply New GIRO".
2. Choose Your Bank: Select your bank from the drop-down list. Then, click "SELECT".
3. Select Tax Accounts & Payment Plan: Tick the tax account(s) for the GIRO arrangement. Then, for Property Tax, select monthly or one-time yearly. Click "CONTINUE".
   Note: Property tax for a development may be grouped together. Click the account(s) to see details.
4. Review & Confirm the Application: Check your GIRO selection and contact details. Read and agree to the Declaration details. Then, tick the checkbox and click "CONTINUE".
5. Complete Setup via Bank’s Corporate Internet Banking: You’ll be redirected to your bank’s Corporate Internet Banking portal. Log in and complete the eGIRO setup. Refer to your bank’s user guide if needed.
6. Final Confirmation: Upon successful application at the bank’s portal, you will be redirected back to myTax Portal. An acknowledgment page will confirm the completion of the eGIRO application.

Tips for Managing GIRO Plans 

Managing GIRO plans in Singapore effectively ensures your bills are paid on time while keeping your finances in check. Here are some key tips:

1. Maintain a list of all eGIRO payments, including due dates and amounts. Check your bank statements or internet banking app regularly to confirm deductions.
2. Keep enough balance in your bank account before the deduction dates to avoid failed eGIRO payments. Set up a buffer amount in your account to prevent accidental shortfalls.
3. If you switch bank accounts, update your GIRO arrangements to avoid payment disruptions. Notify billing organisations promptly of any account changes.
4. Contact both your bank and the billing organisation when stopping a GIRO arrangement. Ensure you clear outstanding payments before cancellation.

Conclusion 

The GIRO plan IRAS is a convenient and automated payment system that simplifies financial transactions for individuals and businesses in Singapore. Allowing direct debit and on-demand payments, GIRO ensures timely and hassle-free bill settlements while minimising the need for manual transactions. Setting up a GIRO arrangement is simple for both personal tax payments and business expenses.