What is IR21 and do I need it?

It is a tax clearance for foreign and SPR employees. Generally, when your non-Singapore Citizen employee (i.e. foreign or Singapore Permanent Resident employee) ceases employment with you in Singapore, goes on an overseas posting or plans to leave Singapore for more than three months, you are required to seek tax clearance for him. As an employer, you have the responsibility to file the Form IR21 and withhold all monies due to the employee for tax clearance purposes. This applies to all work pass holders including Personalised Employment Pass (PEP) holders.

Updated on: 15/05/2024