TaxSavvySG

Employer tax duties when a foreigner leaves

Our EP holder is resigning. What tax steps do we take?

The situation

Employers must file IR21 for departing non-citizen employees at least one month before they stop work and withhold money due until IRAS clears.

The law

  • Income Tax Act 1947: employer returns (IR8A, AIS): Employers report employees' income to IRAS by 1 March each year

What it means for you

Late IR21 filing is an offence. The employee's final tax is settled through the clearance. Cancel the work pass with MOM after the last day. Cancel the pass after the last day. Keep IR21 receipts.

What to do

  1. File IR21 a month before.
  2. Withhold final payments.
  3. Release after clearance.
  4. Cancel the pass with MOM.

We can do this for youHiring foreign staff: work pass and levy basics: SGD 300

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