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Tax Clearance

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eren_jaeger
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Tax Clearance

Post by eren_jaeger » Sat, 03 Aug 2019 9:03 pm

Hello, referring to my post here viewtopic.php?f=33&t=131267
I have worked one month for my ex-employer and was asked to resign without any notice. They did not file the IRAS for me and I got full salary for the month. I have got a job offer and the prospective employer just filed for EP application for me two days ago.
My question is, if my ex-employer did not file IRAS for me, does that mean I do not need to pay tax for that one month of work?
I am worried that I would be stopped from exiting Singapore immigration if the immigration finds out that the employer did not file IRAS for me.
What should I do? Since I am on 30 day STVP, and my last day that I can stay here is 15th August, should I gamble on the possibility that I can get my EP approved before 15th August then I no need to exit/enter the immigration again?

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sundaymorningstaple
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Re: Tax Clearance

Post by sundaymorningstaple » Sun, 04 Aug 2019 7:52 pm

In theory, they should have still filed the IR-21 so you income would already be lodged with IRAS. Currently if this was your first job in Singapore, then no, you would not have any tax liability, however, once you work over 60 days, yes you must pay taxes on it. So, once your second job starts you have to remember to include the income from the first job as well at the end of the year. It's going to be a bit of a pain but it's not a real problem. Just remember you need to include it on your YA2020 tax return. I

If you have to exit Singapore, you are okay if that is the only income earned here for the current year. But if you get another job and return, what i said above applies. It would be better if the IR-21 had been applied but that's the employer's problem. If something is said by immigration tell them what happened, the employer may well get a fine of $1000 for failure to timely file the IR-21 or give valid reason for short notice (IRAS will generally allow for short notice if early dismissal but they have to file).

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Re: Tax Clearance

Post by eren_jaeger » Sun, 04 Aug 2019 8:03 pm

sundaymorningstaple wrote:
Sun, 04 Aug 2019 7:52 pm
In theory, they should have still filed the IR-21 so you income would already be lodged with IRAS. Currently if this was your first job in Singapore, then no, you would not have any tax liability, however, once you work over 60 days, yes you must pay taxes on it. So, once your second job starts you have to remember to include the income from the first job as well at the end of the year. It's going to be a bit of a pain but it's not a real problem. Just remember you need to include it on your YA2020 tax return. I

If you have to exit Singapore, you are okay if that is the only income earned here for the current year. But if you get another job and return, what i said above applies. It would be better if the IR-21 had been applied but that's the employer's problem. If something is said by immigration tell them what happened, the employer may well get a fine of $1000 for failure to timely file the IR-21 or give valid reason for short notice (IRAS will generally allow for short notice if early dismissal but they have to file).
Hi, this is not my first job in singapore. But my ex-employer did submit IRAS form for me.
This time after 1 month into work for another employer, I was given the option to be terminated or resign , and I chose to resign and submit my resignation letter (The employer contract says that no notice shall be given for either party when resign or fire during probation). So would the immigration think that I should be the one responsible for filing IRAS since I resign instead of being terminated?

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sundaymorningstaple
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Re: Tax Clearance

Post by sundaymorningstaple » Sun, 04 Aug 2019 8:49 pm

It's still the employer's responsibility and I'm surprised the gave you your full final pay. They did know your were previously employed here, correct? You might check with them that they did, in fact, file the IR-21. The following taken from the IRAS website:
https://www.iras.gov.sg/IRASHome/Busine ... es--IR21-/

Please note the following in the example I filled out using the downloadable Tax Clearance Calculator available on the link I gave you above. You will notice, in the Result field Scenario 1 initially says the employer does not need to file the IR-21 (IF the employee has not been previously employed by another employer in Singapore during the year or previous year).

However it does go on to indicate that if the employer does not know if the employee had worked previously, they should file the IR-21 anyway and they will receive an immediate online notification if tax clearance is not required for that employee.
Clipboard01.jpg

eren_jaeger
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Re: Tax Clearance

Post by eren_jaeger » Sun, 04 Aug 2019 8:54 pm

Right, so I saw that your screenshot below states that under Scenario 1 , non-singapore citizens who worked not more than 60 days in a calendar year does not need to file for tax clearance. That could be the reason why the company does not file for me since I worked only for 1 month ?

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sundaymorningstaple
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Re: Tax Clearance

Post by sundaymorningstaple » Mon, 05 Aug 2019 2:19 am

I know now why you are in the crap your in. You already stated to me that you have already worked for another employer this year. Even if you didn't tell the employer, they should have tried to file the IR-21 and it would have immediately let them know that they would have had to because your previous employer already filed one for your previous employment. Try pulling your head out and reading the whole thing. All three paragraphs are part of Scenario 1. You seem to have a reading comprehension problem. I think I might know why your employer let you go.

eren_jaeger
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Re: Tax Clearance

Post by eren_jaeger » Mon, 05 Aug 2019 8:52 am

lol sorry I misunderstood on that part.
Anyway, thanks a lot for your help.

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