TaxSavvySG

Tax clearance for departing foreigners

Our foreign employee is leaving. What must we do?

The situation

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

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

Hold back money until IRAS clears. IRAS then issues a tax clearance once the employee's final tax is settled, and the employer may release the withheld money. Late IR21 filing is an offence, and the employer can be liable for tax it failed to withhold.

What to do

  1. File IR21.
  2. Withhold.
  3. Wait.
  4. Release.

We can do this for youEmployer year-end reporting: IR8A and AIS: SGD 300

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