Tax Clearance for Foreigners: Who Qualifies and What You Get
Understand the tax clearance process for foreign employees leaving Singapore and the responsibilities of employers.
Tax clearance is a process used to ensure that all tax obligations are fully settled for foreign employees before they depart from Singapore.
Who it's for
This process is managed through employers who have employees on foreign work passes who are leaving the country.
What you get
Completing this process ensures that all outstanding tax liabilities are settled, providing certainty that the departing employee has met their tax requirements.
What it costs you
There is no direct cost to the employee for the process itself, though it requires the necessary settlement of any unpaid tax amounts.
The catch to know
The most important thing for employers to remember is that if they fail to withhold the employee's salary to cover potential taxes, the employer becomes legally responsible for paying that tax.
How to apply
- Employers must identify foreign employees who are leaving the country.
- Employers must notify the tax authorities to initiate the clearance.
- Employers should withhold the employee's salary to cover any outstanding tax liabilities.
- Ensure all tax debts are settled before the employee departs.