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Tax clearance matter

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sundaymorningstaple
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Postby sundaymorningstaple » Sat, 13 Jul 2013 2:39 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,


http://www.iras.gov.sg/irasHome/page.aspx?id=9894

http://www.iras.gov.sg/irasHome/page04.aspx?id=6142

http://www.iras.gov.sg/irasHome/page04.aspx?id=298

If here less than 183 days your tax rate, for all intents and purposes is a flat 15% (or the actual rate if it provided a higher tax).

Tax clearance has to be filed by the employer by law, 30 days before the employee's last day, and the employees salary must be withheld from the date notice was given.

Regardless of amount, the employer has to pay it and then deduct it from the employee's withheld salary (in fact, by law the IRAS makes the employer an "Agent" of the IRAS and are charged with the collection of taxes on behalf of the IRAS. There are penalties for the employer if they do not do so.

If you subsequently go to work for another company, at the end of the year, your combined incomes will be used to recompute your tax liability and any excess taxes (if any) already paid (if the employee has been in Singapore over 183 days) will be refunded upon request or applied to the following years taxes. But you will have to request the refund.

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Postby nutnut » Sat, 13 Jul 2013 4:43 pm

Just my tuppence worth, I'm a PEP holder, if you can prove continued employment and you are quick enough to contact the IRAS then they can allow the tax to be paid by you and allow your employer to release all funds, I just did it last month. It takes at least 30 miutes on teh phone to IRAS and help from your HR/Payroll.

It's possible, trust me, best way is to set up the GIRO first, then they just "continue" to take from that! ;)
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Postby sundaymorningstaple » Sat, 13 Jul 2013 6:40 pm

Nut Nut, I was aware of you or someone else doing that as well on a PEP. I can also understand why they would do that as well. But I doubt seriously that they will if you are on a EP as you lose your residency when you leave the former company. With a PEP you retain you residency. Big difference.

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Re: Tax clearance matter

Postby kapadiabs » Sun, 14 Jul 2013 10:54 am

Thank you,

That means i will get access tax amount in refund. Is there any provision that i will pay actual amount next year instead of pay assessment amount now and request for refund next year

Regards


AngMoG wrote:
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.

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Re: Tax clearance matter

Postby sundaymorningstaple » Sun, 14 Jul 2013 11:47 am

kapadiabs wrote:Thank you,

That means i will get access tax amount in refund. Is there any provision that i will pay actual amount next year instead of pay assessment amount now and request for refund next year

Regards


No. They don't know if you will have another job or not. It's not how it works. Any Expat should make themselves aware of the tax implications of working in any foreign country they go to. If they don't, they are at fault and not the gahments in question.

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Re: Tax clearance matter

Postby kapadiabs » Sun, 14 Jul 2013 12:25 pm

Hi Sundaymorningstaple,

Thanks for your information. Just wanted to confirm I need to pay the tax amount now and when i will file next tax return at that time access tax amount i will get in refund.

Regards

sundaymorningstaple wrote:
kapadiabs wrote:Thank you,

That means i will get access tax amount in refund. Is there any provision that i will pay actual amount next year instead of pay assessment amount now and request for refund next year

Regards


No. They don't know if you will have another job or not. It's not how it works. Any Expat should make themselves aware of the tax implications of working in any foreign country they go to. If they don't, they are at fault and not the gahments in question.

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Postby Wd40 » Sun, 14 Jul 2013 12:35 pm

Yes. Basically, you pay tax on the basis of current circumstances. Who knows tomorrow where you will be, leave alone next year.

When next year comes, IRAS will again re evaluate your total tax liability for the whole year and if they owe you money you get a refund. If you owe them money, you pay.

Also to answer you question better, you need to provide more information.
When did you come to Singapore?
When did you current employment(the employment which has caused you to pay 15% tax) start?
Is your income for the current year reached 20K already?
Last edited by Wd40 on Sun, 14 Jul 2013 12:42 pm, edited 1 time in total.

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Postby kapadiabs » Sun, 14 Jul 2013 12:41 pm

Hi Wd40,

Answer to your question,

When did you come to Singapore? - Feb-2011.
When did you current employment(the employment which has caused you to pay 15% tax) start? - 14-Feb-2013
What is your income for the current year so far?[/quote] - 30000 SGD

Regards

Wd40 wrote:Yes. Basically, you pay tax on the basis of current circumstances. Who knows tomorrow where you will be, leave alone next year.

When next year comes, IRAS will again re evaluate your total tax liability for the whole year and if they owe you money you get a refund. If you owe them money, you pay.

Also to answer you question better, you need to provide more information.
When did you come to Singapore?
When did you current employment(the employment which has caused you to pay 15% tax) start?
What is your income for the current year so far?

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Postby Wd40 » Sun, 14 Jul 2013 12:50 pm

Since you came to Singapore in Feb 2011, I think you should be able to straddle 2 years and have the tax computed for the combined 2 years, last year and this year.

Have a look at this link:
http://www.iras.gov.sg/irasHome/page.aspx?id=9860

May be because, you have already had your tax assessed and paid for the last year, you are not eligible for straddling.It may be worth checking with IRAS.

But anyways, what has already been said stands true, i.e, you will be considered a tax resident(and hence the tiered tax slab) for the current year, if you continue your employment in Singapore for rest of the year and if you have paid in excess, you will get a refund.

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Postby sundaymorningstaple » Sun, 14 Jul 2013 5:42 pm

Today's FT! :roll:

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Postby nutnut » Sun, 14 Jul 2013 6:32 pm

Yeah, EP you cannot get away with doing what I did...SMS my answer was for zzm's query :)
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Postby sundaymorningstaple » Sun, 14 Jul 2013 8:09 pm

:cool:

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Re: Tax clearance matter

Postby tiryns12345 » Thu, 09 Apr 2015 6:39 pm

hi guys. I was previously on an EP and left my job.

In relation to tax clearance, what happens if my ex-employer does not file the tax clearance? who is responsible for paying the tax then? do I still have to file an ir8a form? it has been 6 months and the ex-employer still has not filed a tax clearance and I have not heard anything...

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Re: Tax clearance matter

Postby sundaymorningstaple » Thu, 09 Apr 2015 7:37 pm

I'd suggest going to IRAS along with your pay vouchers (all for the last two calendar years) unless you have an IR8A for the year ending 2013 If your employer was on the auto-inclusion scheme (if over 10 employees they had to be), they are not required to give you an IR8A although most employers do as it's possible with most payroll systems to generate them. In any case, you need to produce your payvouchers up till you left the company and then they can generate the taxes due them. At the same time you need to give them the particulars of the company so IRAS can hang their arses out to dry. They have to file tax clearance by law and face a $1000 fine if they don't file, forgetfully or willfully. I'm assuming you are re-employed with another local employer here so are still in Singapore.

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Re: Tax clearance matter

Postby tiryns12345 » Thu, 09 Apr 2015 9:14 pm

yeah i have since be re-employed.

if i don't tell IRAS about my ex-employer not filing, will they find out anyway? they have since given me an ira8 form.

i mean if they hadn't given me anything and i didn't think about it, IRAS would have easily noticed that my EP was from X date to Y date, yet there was only income from my new job for 1/4 of the period, so I'm guessing that would have been a huge red flag


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