Business Encyclopedia

A

Accounting and Corporate Regulatory Authority (ACRA)
Audited Financial Statement
Annual General Meeting (AGM)
Annual Report (AR)
Articles of Association
Apostille

B

BizFile
Business Grants Portal
Business Profile

C

Central Provident Fund (CPF)
Certificate Of Residence (COR)
Common Reporting Standard
Common Seal
Companies Act (Cap. 50)
Company Constitution
Company Secretary
Company Stamp
CorpPass

D

Dependant’s Pass
Directors’ Resolution in Writing (DRIW)
Dividend
Dormant Company
Double Taxation Agreement (DTA)
Due Diligence

E

Electronic Register of Members (eROM)
Employment Pass (EP)
EntrePass
Enterprise Development Grant (EDG)
Estimated Chargeable Income (ECI)
Exempt Private Company (EPC)

F

Financial Year End (FYE)
Form C-S/ C
Form C-S (Lite)
Fund Accounting

G

Goods and Services Tax (GST)

H

Hedge Fund

I

Import/Export License
Income Tax
Initial Public Offering (IPO)
Inland Revenue Authority of Singapore (IRAS)
Intellectual Property Office of Singapore (IPOS)
Interim Dividend
IR21 Form
IR8A Form

J

K

Know Your Customer (KYC)
Knowledge Capital

L

Letter of Consent (LOC)
Limited Liability Company (LLC)
Limited Liability Partnership (LLP)
Limited Partnership (LP)
Liquidation (Court Order/Compulsory)
Liquidation (Voluntary)
Long Term Visit Pass (LTVP)

M

Ministry of Manpower (MOM)
MTI

N

Nominee Director
Nominee Shareholder
National Registration Identity Card (NIRC)
Notice of Assessment (NOA)

O

P

Partnership
Personal Data Protection Act (PDPA)
Personalised Employment Pass (PEP)
Private limited company
Productivity Solutions Grant (PSG)
Permanent Resident (PR)

Q

Quickbook Accounting

R

Register of Charges
Register of Nominee Director
Register of Registrable Controllers (RORC)
Registered Office Address

S

S Pass
Share
SingPass
Small Company
Sole Proprietor
Special Employment Credit
Sponsored Employment Pass
Striking Off

T

Trademark
Temporary Bridging Loan
Temporary Employment Credit (TEC)

U

UEN
Unaudited financial statement
Undischarged Bankrupt

V

Variable Capital Company (VCC)
Venture Capitalist (VC)

W

Wage Credit Scheme
Withholding Tax (Section 45)

X

XBRL
Xero

Y

Year of Assessment (YA)

Z

Zero Rated Supplies
Zero-rised Financial Statement

IR21 Form

Form IR21 is not a yearly requirement in and of itself. It only applies when a foreign employee (including Singapore Permanent Residents) leaves Singapore for more than three months, accepts an overseas contract, or leaves your company.

In this instance, the Inland Revenue Authority of Singapore (IRAS) needs you to fill out Form IR21 to request clearance for the absent employee.

That’s not all, though. While you are doing it, you should also withhold all monies owed to the employee for tax purposes.

Overall, one may consider the IR21 to be a tax clearing procedure for Work Pass holders who leave their local assignments. The only difference is that their company is responsible for filing the form and obtaining clearance.

Form IR21: Its Significance

Form IR21 is essentially Singapore’s technique of catching international tax evaders. IR21 makes it difficult for any foreign employee to depart the nation with a tax bill by passing on the tax clearance requirements to the employers.

According to Singapore legislation, employers must use IR21 to properly notify IRAS at least one month before their employees leave. Following that, only after the IRAS has cleared the employees can their employers release the money that has been withheld.

When Should You File Form IR21, and How Should You Do It?

The IRAS, it turns out, requires you to file an IR21 form at least one month before your employee departs.

The basic technique is as follows:

  • You might choose to fill out and submit the IR21 electronically for faster tax clearance. After signing in with your company’s CorpPass credentials, you can do this through IRAS’s myTaxPortal.
  • Once you’ve logged in, you should enter your employee’s earnings for the year of departure.
  • In the meanwhile, you should withhold all overdue dues from your employee, including lump-sum payments, gratuities, reimbursements, allowances, leave pay, overtime pay, and so on.
  • After applying, allow about seven working days for the IRAS to process the e-filed IR21. Otherwise, processing paper-filed forms would take roughly 21 days.
  • Within three working days after the IRAS processes the form, you’ll obtain a tax Clearance Directive via myTax Portal. The IRAS also sends it by mail, which takes roughly five to seven business days to arrive.
  • You must remit the monies to IRAS within ten days if the Clearance Directive turns out to be a Directive to Pay Tax. On the other hand, a Notification to Release Monies says you can go ahead and pay the employee’s dues.