The IR21 form, also known as the “Tax Clearance for Foreign Employees Leaving Singapore” form, is issued by the Inland Revenue Authority of Singapore (IRAS). It is used to notify IRAS when a foreign employee leaves Singapore permanently or for an extended period.

Key points about the IR21 form:

Notification Requirement: Employers in Singapore are to submit the IR21 form to IRAS within one month before the foreign employee’s last day of employment if the employee is leaving Singapore for a period exceeding three months or permanently.

Tax Clearance: The purpose of the IR21 form is to facilitate tax clearance for the departing foreign employee. Tax clearance ensures the employee has settled all outstanding taxes owed to the Singapore government before leaving the country.

Information Required: The IR21 form requires the employer to provide details about the departing foreign employee, including personal information such as name, passport number, employment details, last day of employment, and the reason for leaving Singapore.

Tax Assessments: Upon receipt of the IR21 form, IRAS will assess the tax liability of the departing foreign employee. This assessment considers factors such as the employee’s income, tax deductions, and any tax liabilities that may arise from employment in Singapore.

Tax Clearance Certificate: If the departing foreign employee has no outstanding tax liabilities or arrangements have been made to settle any outstanding taxes, IRAS will issue a Tax Clearance Certificate (TCC). The TCC certifies that the employee’s tax affairs in Singapore are in order and that he or she is cleared to leave the country.

Consequences of Non-Compliance: Failure to submit the IR21 form or obtain tax clearance for departing foreign employees may result in penalties or other enforcement actions by IRAS.