When is Tax Clearance (Form IR21) Not Required

Owned by Michelle Ng (Unlicensed)
Last updated: Jan 21, 2020 by Customer Service Team
2 min read

Tax clearance is not required for the following categories of employees/scenario. If your employees fall under these categories/scenarios, you do not need to complete Form IR21 but you must submit the employee's income details to IRAS using Form IR8A or through the Auto Inclusion Scheme by 1 Mar.

  • Singapore Citizens
  • Singapore Permanent Residents (SPR)


If your employee is an SPR who is not leaving Singapore permanently after he or she stops working for you, you may obtain a Letter of Undertaking (LOU) from the employee stating that he or she will not leave Singapore permanently.
With the LOU, you are not required to seek tax clearance for the employee.

This administrative concession, however, does not apply to overseas postings and employment. When an SPR employee leaves Singapore for an overseas posting or employment, you will be required to seek tax clearance for the employee.

  • Non-Singapore Citizens who:
    • Worked 60 days or less in a calendar year (Scenario 1);
    • Worked 183 days or more within a calendar year and earned less than $20,000 annually (Scenario 2);
    • Worked 183 days or more within a continuous period straddling two years and earned less than $20,000 annually (Scenario 3);
    • This two-year administrative concession is only applicable to foreign employees who have entered Singapore on or after 1 Jan 2007. It does not apply to directors of a company, public entertainers or individuals exercising a profession, vocation or employment of a similar nature.
    • Worked for three continuous years or more and earned less than $20,000 per year (Scenario 4);
    • Are transferred to another company in Singapore due to a company merger, takeover, or restructuring within the group;
    • Are away from Singapore for training or business purposes (excluding overseas posting) for three to six months.


You may use the Tax Clearance Calculator (72KB) to check whether tax clearance is required.

What is the Tax Clearance Process?

For non-Singapore Citizen employees who require tax clearance with IRAS, you must file Form IR21 at least one month before:

  • The employee ceases to work for you in Singapore; or
  • The employee starts an overseas posting; or
  • The employee leaves Singapore for any period exceeding three months.



source : https://www.iras.gov.sg