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Tax settlement upon leaving Singapore

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expatnumber83
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Tax settlement upon leaving Singapore

Postby expatnumber83 » Tue, 25 Sep 2018 9:40 pm

I was let go from my job about a month ago and I now received a SMS to my SG number phone saying that my giro for paying taxes had been canceled and I that my outstanding tax was to be paid in 7 days. When I left Singapore, I was not told that there was any tax to clear and I was let through customs with a smile from the officer.

The fact is that my employer did not withhold any salary for any amount of time but paid out my final salary in full. I was under the impression that the employer is liable to inform IRAS and pay the tax settlement upon canceling the EP and/or terminating the employment contract?

MOM website reads that it is Form IR21 that the employer is liable to file.

https://www.iras.gov.sg/irashome/Businesses/Employers/Tax-Clearance-for-Foreign-SPR-Employees/Tax-Clearance-for-Employees/

What would be your advice on this?

1) Who is now liable to pay since the employer in this case has been negligent?
2) What would the IRAS say about this?
3) Is the employer in risk of being fined for this if I report it?

Any other advice would be appreciated.

Thanks
Last edited by expatnumber83 on Tue, 25 Sep 2018 10:01 pm, edited 1 time in total.

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PNGMK
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Re: Tax settlement upon leaving Singapore

Postby PNGMK » Tue, 25 Sep 2018 9:56 pm

1. You
2. Nothing - that's IRAS.
3. Possibly.
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Re: Tax settlement upon leaving Singapore

Postby bcheng74 » Wed, 26 Sep 2018 10:49 pm

I am surprised, in fact stunned, by OP’s question of whether that the employer is liable for the individual income tax of an employee....


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sundaymorningstaple
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Re: Tax settlement upon leaving Singapore

Postby sundaymorningstaple » Wed, 26 Sep 2018 11:48 pm

You shouldn't be.

Have you ever had to fill out an IR-21? On of the questions that is asked on the first page at the bottom before you employer even states the employee's earning for the year is if the company pays their taxes or does the employee pay it or does the employer pay a portion of it. This is because if that is so, the IRAS will use the circular mathematical method to calculate their tax liability on the taxes (as the taxes becomes income to the employee and therefore needs to be taxed as well) until it small enough that the tax cents are rounded down to $0.00.

This is what it looks like, can I ask you what it feels like? :lol: :lol:

faceeggs.jpg

bcheng74
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Re: Tax settlement upon leaving Singapore

Postby bcheng74 » Thu, 27 Sep 2018 5:21 am

sundaymorningstaple wrote:You shouldn't be.

Have you ever had to fill out an IR-21? On of the questions that is asked on the first page at the bottom before you employer even states the employee's earning for the year is if the company pays their taxes or does the employee pay it or does the employer pay a portion of it. This is because if that is so, the IRAS will use the circular mathematical method to calculate their tax liability on the taxes (as the taxes becomes income to the employee and therefore needs to be taxed as well) until it small enough that the tax cents are rounded down to $0.00.

This is what it looks like, can I ask you what it feels like? :lol: :lol:

faceeggs.jpg


OP has been paying his/her own tax on Giro. And he/she asks that since he/she was let go, the employer should then inform him/her and MOM outstanding tax settlement, failing of which should make the company liable to pay the remaining unpaid portion of tax...




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sundaymorningstaple
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Re: Tax settlement upon leaving Singapore

Postby sundaymorningstaple » Thu, 27 Sep 2018 12:27 pm

Still wrong. Regardless. Whether the company did or didn't pay, the obligation is still on the taxpayer to pay his outstanding taxes. He should have gone to or called up IRAS to find out or at least logged into his online account at IRAS with his SingPass, if he had one. They would be able to tell him immediately whether he owed money or not. ICA is not IRAS. Unless IRAS had flagged his FIN number ICA wouldn't know if he had outstanding taxes or not and wouldn't have any real reason to check either. However, he should well have known that he would still have received a final tax assessment to ensure clearance had been done. The obligation rest with the taxpayer to ensure his taxes are paid. So yes, he still owes the taxes and it would be in his best interest to pay them if he is entertaining thoughts of possibly returning here in the future.

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sundaymorningstaple
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Re: Tax settlement upon leaving Singapore

Postby sundaymorningstaple » Thu, 27 Sep 2018 12:28 pm

However, yes, IRAS can fine the employer for not timely filing the IR-21. The fine is $1000.


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