As part of our commitment to supporting your business, we want to educate you on two important compliance requirements under Singapore’s tax regulations: withholding tax for payments made to non-residents and the filing of IR21 for foreign employees leaving the company. Ensuring compliance with these requirements is crucial for avoiding penalties and ensuring smooth business operations.
Withholding Tax for Payments to Non-Residents
According to Singapore’s withholding tax rules, any payments made to non-residents for services provided within the country are subject to withholding tax. This means that when you make such payments, a portion of the payment must be withheld and remitted to the Inland Revenue Authority of Singapore (IRAS).
Key Points to Remember:
Who: Payments to non-residents (individuals or entities).
What: Withholding a portion of the payment as tax.
When: At the time of payment for services rendered in Singapore.
Why: To comply with Singapore tax regulations and avoid penalties.
Filing IR21 for Foreign Employees Leaving the Company
Under Singapore law, the IR21 form must be filed for foreign employees who are ceasing employment, leaving Singapore for more than three months, or going on overseas posting. This form must be submitted to IRAS at least one month before the employee’s departure.
Key Points to Remember:
Who: Foreign employees leaving the company or the country.
What: Filing the IR21 form with IRAS.
When: At least one month before the employee’s departure.
Why: To comply with Singapore tax regulations and ensure proper tax clearance.
How We Can Help
Navigating these compliance requirements can be complex, but we are here to assist you every step of the way. Our services include:
Withholding Tax Compliance: We can help you determine when withholding tax applies, calculate the correct amount to withhold, and ensure timely remittance to IRAS.
IR21 Filing: We offer comprehensive support in filing the IR21 form, ensuring all necessary details are accurately completed and submitted on time.
Should you have any questions or require further clarification regarding these compliance requirements, or if you would like to engage our services, please do not hesitate to contact us. We are here to support you and ensure all compliance matters are handled smoothly. |
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