What is an IR21?

by Jennifer VanBaren - Updated September 26, 2017

An IR21 is used in Singapore by employers who hire foreign employees. This form is sent to the Inland Revenue Authority of Singapore by employers for the purpose of seeking tax clearances for foreign employees.

Description

A form IR21 is called a Notice of Cessation of Employment and Tax Clearance for a Foreign Employee. The human resources or finance department of a company typically completes and submits this form to the IRAS.

Purpose

This form notifies the government of Singapore of all foreign employees working in the country whose employment is about to cease. The purpose is to collect payroll taxes from these employees. Employers are required to withhold the final paycheck of all foreign employees until the IRAS authorizes the company to release it. This gives the foreign employee time to settle all taxes owed.

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Exclusions

Foreign employees working for fewer than 60 days do not need tax clearance. Foreign employees working in Singapore for 183 days or more and making less than $20,000 per annum also do not need tax clearance. A foreign employee who works for three continuous years in Singapore but earns less than $20,000 per annum also is exempt from seeking tax clearance.

About the Author

Jennifer VanBaren started her professional online writing career in 2010. She taught college-level accounting, math and business classes for five years. Her writing highlights include publishing articles about music, business, gardening and home organization. She holds a Bachelor of Science in accounting and finance from St. Joseph's College in Rensselaer, Ind.

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