Singapore Expats Forum

Tax clearance matter

Moving to Singapore? Ask our regular expats in Singapore questions on relocation and their experience here. Ask about banking, employment pass, insurance, visa, work permit, citizenship or immigration issues.

Sponsored by:
Image
The Club Residences

bluebell007
Newbie
Newbie
Posts: 1
Joined: Tue, 06 Mar 2012

Tax clearance matter

Postby bluebell007 » Tue, 06 Mar 2012 3:51 pm

Hi, anyone know about the tax clearance detail because i will leaving my current job and boss told me that I may need to pay the tax for government.

I'm work permit holder and my commerce date is from july 2011 until march 2012. Will i need to pay the tax if i've plan to get a new job in singapore?
Is that any period that i must get a new job?

Please advice.

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 35159
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby sundaymorningstaple » Tue, 06 Mar 2012 4:42 pm

IF you are a Work Permit holder (not an Employment Pass holder) AND your income is less than 20K during the calendar year. If your income for the previous year (2011) was more than 20K then your employer will have to file tax clearance (IR-21) and pay your taxes and deduct those taxes from your final salary. By law, they must keep your final salary until such time as either tax clearance has been paid or it is determined that tax clearance is not necessary. (If you earned less than 20K in 2011 or 2012 the employer is not even required to file the IR-21).

http://www.iras.gov.sg/irasHome/page04. ... t_required

User avatar
zzm9980
Governor
Governor
Posts: 6842
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Tue, 06 Mar 2012 7:28 pm

Quick question:

Does PEP holder also have pay held for tax clearance?

edit: SMS's link makes it sound like I will have to, but just checking..

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 35159
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby sundaymorningstaple » Tue, 06 Mar 2012 8:21 pm

Yes, you employer would be required to file the tax clearance one month before you draw your final salary. The key here is that Tax Clearance is required by ALL Foreigners when leaving their employment (if you have a FIN number you would need to file, if you have an NRIC you don't).

User avatar
zzm9980
Governor
Governor
Posts: 6842
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Tue, 06 Mar 2012 8:26 pm

So since I've never filed taxes in Singapore yet, IRAS is unaware of my deductions and such. If they over-withhold, do I receive a refund, or is it credited? I imagine since they're going to withhold the whole thing now, and not give me the option to Gyro over 12 months? :P

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 35159
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby sundaymorningstaple » Tue, 06 Mar 2012 9:25 pm

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

User avatar
JR8
Immortal
Immortal
Posts: 16514
Joined: Wed, 24 Mar 2010
Location: K. Puki Manis

Postby JR8 » Tue, 06 Mar 2012 9:48 pm

zzm9980 wrote: I imagine since they're going to withhold the whole thing now, and not give me the option to Gyro over 12 months? :P


I thought a Gyro was a NYC street-vendor kebab! :)

User avatar
zzm9980
Governor
Governor
Posts: 6842
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Wed, 07 Mar 2012 8:32 am

JR8 wrote:
zzm9980 wrote: I imagine since they're going to withhold the whole thing now, and not give me the option to Gyro over 12 months? :P


I thought a Gyro was a NYC street-vendor kebab! :)


Gyros, and I think more popular in Chicago where I'm from :D God I miss those. Damn you to hell for reminding me.

Image

User avatar
zzm9980
Governor
Governor
Posts: 6842
Joined: Wed, 06 Jul 2011
Location: Once more unto the breach

Postby zzm9980 » Wed, 07 Mar 2012 8:35 am

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



So in my case, I'm over 183 days, but just barely not for Tax Year 2011. But, I was on a continues P1 that whole year, and since last month, switched to PEP. Will they give me the 15% rate, or the lower rate? Also, I have a wife and kid, and since I haven't done taxs yet, IRAS has never really been told by me. That's small potatos anyway, I guess I'll find out soon enough :)

Thanks

User avatar
the lynx
Governor
Governor
Posts: 5272
Joined: Thu, 09 Dec 2010
Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location:

Postby the lynx » Wed, 07 Mar 2012 9:13 am

*ahem*

G-I-R-O :P

User avatar
sundaymorningstaple
Moderator
Moderator
Posts: 35159
Joined: Thu, 11 Nov 2004
Location: Still Fishing!
Contact:

Postby sundaymorningstaple » Wed, 07 Mar 2012 9:30 am

Agreed. Giro.

Lynx, for a moment there while trying to read your post the song Y....M....C....A..... kept getting in the way! :lol:

User avatar
the lynx
Governor
Governor
Posts: 5272
Joined: Thu, 09 Dec 2010
Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location:

Postby the lynx » Wed, 07 Mar 2012 1:12 pm

sundaymorningstaple wrote:Agreed. Giro.

Lynx, for a moment there while trying to read your post the song Y....M....C....A..... kept getting in the way! :lol:


:lol: :P

Oh crap, what have you done? Now it is playing in my head ALSO!

User avatar
the lynx
Governor
Governor
Posts: 5272
Joined: Thu, 09 Dec 2010
Location: Location: Location: Location: Location: Location: Location: Location: Location: Location: Location:

Postby the lynx » Wed, 07 Mar 2012 1:32 pm

On similar note, do remember that if you arrange for GIRO for tax payment and then you resign before it kicks in or halfway through, the GIRO arrangement will be terminated without notice (because I didn't receive anything from IRAS) and you will need to pay up the remaining amount (had to call IRAS to get the final figure).

kapadiabs
Newbie
Newbie
Posts: 12
Joined: Sat, 13 Jul 2013

Tax clearance matter

Postby kapadiabs » Sat, 13 Jul 2013 2:10 pm

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,

AngMoG
Reporter
Reporter
Posts: 609
Joined: Wed, 17 Apr 2013

Re: Tax clearance matter

Postby AngMoG » Sat, 13 Jul 2013 2:37 pm

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,


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.


  • Similar Topics
    Replies
    Views
    Last post
  • Tax Clearance and ESPP tax
    by juvenchan » Wed, 29 Aug 2018 5:52 pm » in Careers & Jobs in Singapore
    1
    409
    by PNGMK View the latest post
    Wed, 29 Aug 2018 8:45 pm
  • Need HELP on income tax matter
    by eekwan7 » Tue, 13 Oct 2015 10:33 pm » in Strictly Speaking
    13
    2567
    by sundaymorningstaple View the latest post
    Sun, 08 Nov 2015 9:44 am
  • Tax Clearance and Other Issues.
    by dasty » Sat, 03 Jan 2015 3:23 pm » in Careers & Jobs in Singapore
    1
    1179
    by JR8 View the latest post
    Sat, 03 Jan 2015 4:56 pm
  • tax clearance question
    by palaboy » Fri, 12 Jun 2015 9:58 pm » in Careers & Jobs in Singapore
    8
    2174
    by sundaymorningstaple View the latest post
    Sat, 13 Jun 2015 12:07 am
  • Leaving Singapore prior to tax clearance
    by octane100 » Mon, 31 Aug 2015 3:59 pm » in Careers & Jobs in Singapore
    22
    7040
    by JR8 View the latest post
    Sun, 13 Sep 2015 3:17 am

Return to “Relocating, Moving to Singapore”

Who is online

Users browsing this forum: No registered users and 0 guests