IRAS introduced the simplified e-Filing process for the convenience of taxpayers in Singapore. However, many are still confused about how to use it and how it works. Therefore, the information provided in the FAQ should answer any questions anyone has about this user-friendly process.

e-Filing for Tax Clearance

Tax clearance is one of the most important areas of any country’s tax laws. The tax laws in Singapore are no different. In Singapore, one of the ways in which taxpayers may file for tax clearance is by using e-Filing. The simplified process of e-Filing was introduced by the Inland Revenue Authority of Singapore (IRAS). Its purpose was to make the process of tax clearance filing more user-friendly and easier to comprehend.

 

General Information

The simplified process of e-Filing applies to employees who are not citizens of Singapore and only to cases in which tax clearance is not mandatory. In these cases, only the “File Form IR21” page is to be completed. Once this page is completed, the employee who has completed the page will receive an online notification. At this point, the employer should print this notification and release any money which has been withheld to the employee. There will be no issuance of either a clearance directive or a Notice of Assessment.

 

Further Details

IRAS’ system is able to determine if a particular employee requires tax clearance. This is done based on the employee’s employment details as stated on the “File Form IR21” page. Should tax clearance be required, the user will be prompted to continue with the process of e-Filing. Should it not be required, the steps mentioned in the preceding paragraph ought to be followed.

Sometimes, one might forget to print a copy of the online notification. However, this is not a particularly grievous error. This is because there is a simple way to remedy it. To fix this error, one may re-file a Form IR21 and re-submit all necessary information on the related page. Should there be no requirement for tax clearance, an online notification will be issued.

Changes in filing details, such as total income or employment period, occasionally have to be addressed. This can be done by re-filing a Form IR21. Once the re-filing has been completed, the changed information must be entered on the “File Form IR21” page. All filing details which have been revised take precedence over details which have been edited out.

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E A S I E R • F A S T E R • B E T T E R

Employers might sometimes have additional income to be reported even after receiving the online notification for the release of the employee’s withheld money. Just as is the case in the prior two examples, the appropriate step to be taken is that of re-filing a Form IR21, then re-entering all relevant information wherever necessary. If the total income of the employee in question exceeds the minimum taxable amount, the employer will receive a prompt to continue with the process of e-Filing. Eventually, the employer can expect to reach a page titled “File Form IR21 – Main Form”. Once there, the employer is to select “Original”. Selecting “Original” implies that the employer is filing tax clearance on the employee’s behalf for the first time. The employer is also required to report the full set of income details as well as the total amount of money which has been withheld.