Essentially, when a non-Singapore Citizen employee (i.e. foreign or Singapore Permanent Resident employee) ceases employment with the employer in Singapore, goes on an overseas posting or plans to leave Singapore for more than three months, you are required to seek tax clearance for him/her.
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.
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 over here: https://www.iras.gov.sg/irashome/Businesses/Employers/Auto-Inclusion-Scheme--AIS--for-Employment-Income/.
(Please note that AIS submission for current year is closed as it ended 31 Dec of the previous year. If you apply for AIS now, it will be for the following year's submission.)
To submit IR21 to IRAS, you can refer to the guide below or follow these steps:
- Head over to Payroll > Payroll Settings > IR21. Choose your Year of Assessment (YA) and click on "Generate IR21 for ... ", where "..." is your YA.
- Update your Employer Info (Step 1) and double check all the IR21 forms to ensure that everything is in place.
- Once that is done, click on "View Overall Report" and click "Submit to IRAS" using your CorpPass account details.
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. 😎