Singapore – Singapore tax clearance for non-citizen employees
- November 2011
- 260 KB
- Singapore – Singapore tax clearance for non-citizen employees
- Area: Employers
The Inland Revenue Authority of Singapore (IRAS) has been stepping up enforcement actions on the submission of tax clearance for non-Singapore citizen employees in recent years. In the last month, many companies have received reminders from the IRAS to submit Form IR21 (Notification of a noncitizen employee’s cessation of employment or departure from Singapore) on time.
An employer is required to notify the IRAS by filing Form IR21 for its employee who is neither a Singapore citizen nor a Singapore Permanent Resident (SPR) or is a SPR who is leaving Singapore permanently (including on overseas posting for a period 3 months or more) on cessation of employment in Singapore at least one month before the expected date of cessation of employment or departure from Singapore, whichever is earlier. In addition, the employer is also required to withhold any money due and payable to such employee until the expiry of 30 days after the receipt by the IRAS of such notification, unless permission is granted for the release of money to the employee earlier.
The IRAS has in its reminder cautioned that in the event of late submission of the Form IR21, it will impose a composition fee of up to Singapore $1,000 and/or summon the company to attend court for the late and/or nonsubmission of Form IR21. If the employee did not give the company advance notice prior to his/her cessation of employment, the company will need to submit Form IR21 immediately once it is aware of the employee’s intention to leave and to state the reason(s) for the late notification.