Singapore Expats

^^^Fact. The IRAS has the power to make the employer their "Tax Agent" and the responsibility to collect and remit the taxes falls on the employer. If the employer doesn't do so or not timely, they can be fined up to $1000 per instance. After the taxes are paid OR the employee has done a runner and a police report files by the employer and submitted to the IRAS regarding same, you will receive a letter from the IRAS discharging you from your duties as a "Tax Agent" until the next departing FT/FW when you will again be automatically enrolled as a Tax Agent for the IRAS.

Here's my personal experience. I terminated my employment, served my notice period, returned my pass and collected my last salary. Went backpacking for three months, oblivious to the fact that the HR and Finance department were scrambling to contact me after I left, all because they forgot to deduct the tax from my final salary. After my trip, when I came to Singapore again for another interview, I was welcomed by a stack of red letters accumulated by the former employer (because IRAS had no other address to send the Letter of Demand, other than my former employer). With nice penalty to add on top of that.

Went to IRAS, explained the situation (with proof of e-mails etc, that there was no intent on my part to evade tax, and that my former employer did not do their part well), got the penalty waived off. Paid the owed taxes in full. Short and sweet, and done. No blacklist whatsoever, thank goodness. I owe all the hassle to the incompetent HR.

My point is that immigration officers would not know and would not be able to stop you at the airport if you fail to pay your taxes.

I had been stopped at check point as I forgot to bring my pass cancellation paper from my company. Need to bring the paper which provided by company as the employer had deducted our last pay for the income tax and the paper proved that we had cleared the tax.


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the lynx wrote:Here's my personal experience. I terminated my employment, served my notice period, returned my pass and collected my last salary. Went backpacking for three months.... After my trip, when I came to Singapore again for another interview,

Wow! So you quit your job without another one and went backpacking for 3 months. I wish I could do that!

That's one cool cat

menudown wrote: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

Yes, many people are stopped actually. If your company files the IR-21 and you owe more taxes than witheld, IRAS will issue you a bill. You have 10 days from the date of the notice to pay it in full. If not, they will contact ICA and put a hold on your ability to depart the country. No payment plans are allowed unless you out-right own (no mortgage) property in Singapore you can use as collateral.

Source? I called IRAS and asked myself when I left a previous job.

ecureilx wrote: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,

Mine came directly to me. Employer files IR-21, with-held payment was not enough, and notice of assessment came to me.

I've mentioned before the problem I had when i left the first time.
I was canned. HR estimated my tax liability and withheld it. It was certainly the final month, and could have been more (I don't recall now).
I packed up home and a few weeks later left. No problems at changi.
If there were IRS issues later, IRS must have directly billed my employer.
About 3 years later, by then working in the same MNC, but in NYC, SG-HR finally caught up with me and demanded payment.