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.
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.
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.