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Leaving Singapore prior to tax clearance

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octane100
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Leaving Singapore prior to tax clearance

Post by octane100 » Mon, 31 Aug 2015 3:59 pm

Hi all,

I was recently made redundant from my job here in Singapore, the company cancelled my workpass and the families dependant passes the same day. Due to the limited time we can now stay we are working on departing in a couple of weeks. As the tax clearance has not been completed, the company has provided me with a letter stating they assume all responsibility for outstanding taxes due (they have withheld last pay). Has anyone had experience with this leaving the country using a letter such as this? It does not appear to be a sound solution and I am concerned I will be refused exit at the airport...
Thanks...

livingontheedge
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Re: Leaving Singapore prior to tax clearance

Post by livingontheedge » Mon, 31 Aug 2015 4:36 pm

octane100 wrote:Hi all,

I was recently made redundant from my job here in Singapore, the company cancelled my workpass and the families dependant passes the same day. Due to the limited time we can now stay we are working on departing in a couple of weeks. As the tax clearance has not been completed, the company has provided me with a letter stating they assume all responsibility for outstanding taxes due (they have withheld last pay). Has anyone had experience with this leaving the country using a letter such as this? It does not appear to be a sound solution and I am concerned I will be refused exit at the airport...
Thanks...
Since you a foreigner, it is up to the employer to withhold your last salary and pay the income tax on your behalf. They would have already submitted and estimate your salary is sufficient to cover the income tax for the year.

But whether they return the remaining salary, after settling the tax,..........dunno.......

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sundaymorningstaple
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Re: Leaving Singapore prior to tax clearance

Post by sundaymorningstaple » Mon, 31 Aug 2015 5:28 pm

Take your pay vouchers and go down to the IRAS and request tax clearance from them. They will be able to tell you if the company has already filed the IR-21. In fact, if you have a SingPass check your IRAS account because if they have and clearance has been, the letter will tell you how much taxes were paid or are due. You can also tell them that the employer has not yet remitted or offered to remit the balance due you after deduction said taxes from your final salary. Sounds like they are trying to pull a fast one.

However, I find that a company made you redundant and cancelled you pass on the same day without you knowing about it. Are you sure there wasn't some other reason for your redundancy? How long was your notice period? How long had you been employed with that employer? Did they pay you salary in lieu of notice? Too many unanswered questions.
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Re: Leaving Singapore prior to tax clearance

Post by PNGMK » Mon, 31 Aug 2015 10:48 pm

I see trouble.
I not lawyer/teacher/CPA.
You've been arrested? Law Society of Singapore can provide referrals.
You want an International School job? School website or http://www.ISS.edu
Your rugrat needs a School? Avoid for profit schools
You need Tax advice? Ask a CPA
You ran away without doing NS? Shame on you!

octane100
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Re: Leaving Singapore prior to tax clearance

Post by octane100 » Mon, 31 Aug 2015 10:53 pm

Thanks for the replies. Confirms my thoughts.....

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sundaymorningstaple
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Re: Leaving Singapore prior to tax clearance

Post by sundaymorningstaple » Tue, 01 Sep 2015 8:45 am

octane100 wrote:Thanks for the replies. Confirms my thoughts.....

Thanks for your reply. Confirms my thoughts as well....
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

octane100
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Re: Leaving Singapore prior to tax clearance

Post by octane100 » Tue, 01 Sep 2015 11:46 am

The company will not be doing anything underhanded regarding the tax payment, it is no a small enterprise. My only concern is being refused exit at immigration, not a lot of fun with children and baggage and no accommodation!! Cheers

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ecureilx
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Re: Leaving Singapore prior to tax clearance

Post by ecureilx » Tue, 01 Sep 2015 12:26 pm

octane100 wrote:The company will not be doing anything underhanded regarding the tax payment, it is no a small enterprise. My only concern is being refused exit at immigration, not a lot of fun with children and baggage and no accommodation!! Cheers
if it is truly a large company, then I wouldn't fret, unless you have a vengeful HR or a blur one ..

And must my 2 cents, while I too recommend you to go to IRAS and get it cleared, I don't recall of anybody being stopped by Immigration during departure.

But I heard (through the grapevine) of a guy who came to visit Singapore, and was arrested at the Airport for past unpaid taxes.

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Re: Leaving Singapore prior to tax clearance

Post by octane100 » Tue, 01 Sep 2015 12:36 pm

Thanks squirrelx,

Yes, I agree. My train of thought was kicked off by a story I had been told of a family who were detained.
Just something I'd rather avoid...

All the best

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Re: Leaving Singapore prior to tax clearance

Post by menudown » Tue, 01 Sep 2015 12:38 pm

nobody ever stopped in the immigration for not paying tax...that unless you are not planning to come back here...just give a call or head down to IRAS to clear all doubt

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Re: Leaving Singapore prior to tax clearance

Post by JR8 » Tue, 01 Sep 2015 4:22 pm

How would immigration at Changi know you're not simply going on holiday (when you leave)? Since when has anyone needed tax-clearance etc for taking a holiday?

One time I left SG with an outstanding tax debt. The ex-employer had taken the estimated tax from my last months pay and remitted it to IRAS. But they'd under-estimated it (by a lot), and ex-HR were still pursuing me abroad for it years later (hehehe...). But I had no documentation or questions at the airport upon leaving...
'Do it or do not do it: You will regret both' - Kierkegaard

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Re: Leaving Singapore prior to tax clearance

Post by sgstrait » Fri, 04 Sep 2015 8:12 am

I've seen this issue before. It depends entirely on the reputation of the company. If it is reasonable reputable then there will be no problem. If it's a small operation here, they may well ask you to pay before you leave at the airport . It's happened before.

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ecureilx
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Re: Leaving Singapore prior to tax clearance

Post by ecureilx » Fri, 04 Sep 2015 9:35 am

sgstrait wrote:If it's a small operation here, they may well ask you to pay before you leave at the airport . It's happened before.
Who will ask you to pay before leaving ??

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Re: RE: Re: Leaving Singapore prior to tax clearance

Post by sgstrait » Fri, 04 Sep 2015 9:41 am

ecureilx wrote:
sgstrait wrote:If it's a small operation here, they may well ask you to pay before you leave at the airport . It's happened before.
Who will ask you to pay before leaving ??
The immigration official. I know senior executives visiting on contract work from USA, knowing that they had to pay tax, but ended up held at airport because their company was not big enough or something like that, to get exemption

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Re: RE: Re: Leaving Singapore prior to tax clearance

Post by ecureilx » Fri, 04 Sep 2015 10:00 am

sgstrait wrote:
ecureilx wrote:
sgstrait wrote:If it's a small operation here, they may well ask you to pay before you leave at the airport . It's happened before.
Who will ask you to pay before leaving ??
The immigration official. I know senior executives visiting on contract work from USA, knowing that they had to pay tax, but ended up held at airport because their company was not big enough or something like that, to get exemption

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the only reason ICA, from what I know, has / can stop somebody is the person is in default and there is a 'invitation' from IRAS. If you left with your last or current tax pending, they will go after the employer, not the employee- hence the IRAS recommendation for employers to hold the last month pay, btw,

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