When a non-Singapore Citizen employee (i.e. foreign employee or Singapore Permanent Resident employee) who:
1. ceases employment with their employer in Singapore and goes on an overseas posting OR
2. plans to leave Singapore for more than three months OR
3. has passed away
You are required to seek tax clearance for this employee.
As an employer, you have the responsibility to file the Form IR21 and withhold all monies due to the employee for tax clearance purpose. This applies to all work pass holders including Personalised Employment Pass (PEP) holders.
Auto-Inclusion Scheme (AIS)
Instead of downloading a IR21 file and uploading it separately to myTaxPortal, you can submit IR21 with just a click of a button now!
To ensure you can use this feature to submit IR21 easily, you have to be under AIS. If you are not under AIS, you can simply apply for AIS accordingly.
NOTE: AIS Applications for the current year is closed as the application period ends on 31 Dec of the previous year. You can start applying for AIS now, however it will be for the following year's submission instead. 👍
Submission of IR21
To submit IR21 to IRAS, you can refer to the guide below or follow these steps:
1. To ensure that Form IR21 is properly generated for a resigned non-Singapore citizen employee, you will need to check "Is Leaving Country" box after entering the Resign Date.
2. Head over to Payroll > Payroll Settings > IR21. Choose your Year of Assessment (YA) and click on "Generate IR21 for ... " option that appears.
3. Update your Employer Info (Step 1) and double check all the IR21 forms (Step 2) to ensure that everything is in place.
4. Once that is done, click on View Overall Report > Submit to IRAS using your CorpPass account details.
Checking Your Submission Status
IRAS will get back instantaneously with an acknowledgement email to the authorised person and contact that is updated in myTaxPortal.
To help you along with IR21 form generation and submission to IRAS, here's a short video that you can view:
For further info on tax clearance for foreign and SPR employees (IR21), you can head over to IRAS website. 😎
After generating and submission of IR21, you can now choose to publish individual tax forms to employees via email.