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Tax Clearance for Foreign & SPR Employees (IR21) In Singapore
Types of Clearance Directives In Singapore
You will receive either a:
- Directive to Pay Tax which informs you of the amount of monies to be remitted to IRAS; or
- Notification to Release Monies which informs you to release the employee’s withheld monies to him.
Directive to Pay Tax
You are required to pay within 10 days from the date of the Directive. A penalty will be imposed on late payments.
The amount payable as stated in the Directive is not confined to the tax due in respect of the employment period reported in the Form IR21. It may include your employee’s tax balance for prior years. (Or)
Notification to Release Monies
You should release the withheld monies to your employee as stated in the Notification to Release Monies.
However, if you have filed an Amended/Additional Form IR21, you should not release the withheld monies to the employee until you receive another Clearance Directive in respect of the Amended/Additional Form IR21.
Source of Information for Tax Clearance / Declaration & their related matters is from the Inland Revenue Authority of Singapore (IRAS).
