sundaymorningstaple wrote:If you work for say 3 employers in one year, especially if you work project work, each has to file a tax clearance. As your IRAS Tax Number is you FIN number, it never changes.
Therefore, when your 2nd employer files their tax clearance it will only have the dates of employment and wages drawn by that employer. IRAS will automatically pull up your FIN number and will see there is already income reported and taxes paid. They will recompute by combining incomes and offsetting with taxes paid on the first go. Same goes for the third employer.
If at the end of the year, assuming you have paid some taxes up front, you will either pay the additional taxes or get a refund for overpaid taxes. This CAN happen if, say you first job in Singapore was in the tax year in question and over 60 days (without any days in the previous year) but less than 183 days. Then you would get hit with the flat rate tax of 15% of salary. If you second job lasted the rest of the year or even enough to get past the 183 day mark, then resident rates would apply. It's possibly that, depending on how much you earn, that you could get a refund due to high non-resident rates paid on the 1st job, or you taxes will be substantially reduced when offset with the amount paid at 15%. The tax clearance has to be paid "by the employer" out of your salary. Then any balance is paid to you. The first one can hurt if you don't make the 183 requirement and are hit with the flat rate of 15%.
One other thing. The 183 days are computed from the day you arrive in Singapore, NOT the day you started employment. People often forget or overlook that. HTH
You will have to pay, and it is deducted from your last salary, in my experience. I.e., you don't have a choice. When you do your next tax filing (hopefully next year, regularly), the tax paid will be taken into account, and you would pay the remainder or get refund, as the case may be, then.kapadiabs wrote:Hi,
Can anyone guide me on tax clearance matter? I have changed my employment in Jul-2013. I worked for my ex-employer for 150 Days and i received notice of assessment based on 15% tax rate. I am still in Singapore and now working for another employer. Do i still need to pay Tax amount mentioned in assessment or can i pay it together for ex-employer & new employer.
one more query is there any provision to receive refund on tax clearance and how do i get it. Kindly advise on same,
Regards,
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