If your employment in Singapore is ending — whether by resignation, contract expiry, retrenchment or retirement — your employer must file an IR21 tax clearance with the Inland Revenue Authority of Singapore (IRAS) before you can receive your full final salary. This is not an optional internal process for the employer. It is a statutory requirement under Section 42(6) of the Income Tax Act 1947. For Employment Pass (EP) and S Pass holders, IR21 clearance is also a precondition for the Ministry of Manpower (MOM) to cancel the work pass. From 2025, IRAS has tightened its enforcement timeline. An employer that fails to file within the prescribed window faces a late-filing penalty of up to S$5,000 per occurrence. For the employee, the most direct consequence is a delay in the release of the final salary — typically between 4 and 8 weeks — if the employer misses the deadline or submits incomplete data. Understanding this process protects your cash flow and ensures your pass cancellation is not held up.
When the employer must file IR21
The trigger is the termination of employment
The employer must file IR21 when the employee stops being employed in Singapore. This applies to all foreign employees holding an Employment Pass (EP), S Pass, Tech.Pass, ONE Pass (Overseas Networks & Expertise Pass), or any work pass requiring tax clearance. It also applies to Singapore citizens and permanent residents (PRs) who are leaving Singapore permanently or with no intention of returning. The trigger date is the last day of employment, not the date you leave Singapore. If you work through your notice period, the date employment stops is your last working day — not the day the notice period ends.
The filing window is strictly limited to 10 days
Under Section 42(6) of the Income Tax Act 1947, the employer must notify IRAS within 10 days after the last day of employment. The notification is made by filing the IR21 form through the myTax Portal. The 10-day count includes weekends and public holidays. If the employer files late, IRAS may impose a late-filing penalty of up to S$5,000. For the employee, a late filing means your tax clearance will be delayed and your final salary will be withheld until the clearance notice is issued.
Exceptions to the filing requirement
Not every termination of employment requires IR21. If the employee is a Singapore citizen or permanent resident (PR) and continues to reside in Singapore after leaving the job, the employer need not file. Likewise, if the employee is a foreigner who is leaving Singapore permanently but has no outstanding tax, the employer may still file voluntarily. The key exception: the employee’s total employment income for the year is below S$21,000, and the employee is not leaving Singapore permanently. In this case, the employer may skip the IR21 filing. But for EP and S Pass holders, the safer course is always to file, because MOM requires proof of tax clearance before cancelling the work pass.
A step-by-step breakdown of the IR21 process
Step 1: The employer submits the IR21 form
The employer logs in to the myTax Portal and submits the IR21 form. The form requires the following data: the employee’s full name, NRIC or FIN number, date employment stopped, total employment income for the year, and any benefits-in-kind or share gains. The employer must also declare the last day of employment and the reason employment stopped. This submission triggers the tax clearance process. IRAS will then compute the estimated tax payable for the year and any outstanding tax from previous years.
Step 2: IRAS issues the tax clearance notice
Within 1 to 4 weeks of submission, IRAS will issue a Tax Clearance Notice (TCN) to the employer. The TCN states the amount of tax the employer must withhold from the employee’s final salary. This amount is the employee’s final tax bill for the year in which employment stopped. The employer is legally obliged to deduct this amount from any payment due to you — including salary, bonus and the cash value of accrued annual leave — and remit it directly to IRAS within 30 days of receiving the TCN. The employer cannot pay the withheld amount to you, even if you ask.
Step 3: The employer pays the tax and obtains the clearance certificate
After deducting the tax from your final salary, the employer must remit the payment to IRAS via GIRO or interbank transfer. Once IRAS receives the payment, it will issue a tax clearance certificate to the employer. The certificate confirms that your tax obligations for the year in which employment stopped have been settled. The employer then releases the balance of your final salary to you. The whole process — from submission to clearance — typically takes 4 to 8 weeks.
Step 4: MOM cancels the work pass
For EP and S Pass holders, the employer must also cancel your work pass with MOM. This cancellation can only be done after the IR21 clearance certificate has been issued. If the employer tries to cancel the pass before clearance, MOM will reject the request and ask for the tax clearance certificate. The practical effect: your pass remains valid until clearance is complete, which may delay your departure from Singapore or your ability to start a new job with a different employer.
What the employee must do
Provide accurate contact details and bank information
You must ensure your employer has your current Singapore residential address and the bank account details for your final salary. If you are leaving Singapore, provide a forwarding address and a bank account that stays active. IRAS may send correspondence to your last known address, and any tax refund will be paid into your bank account. If you change address after employment stops, notify IRAS directly through the myTax Portal or by writing to the Commissioner of Inland Revenue.
Settle any outstanding tax from previous years
Before the IR21 process begins, IRAS checks your tax record for unpaid tax from prior years. If you have unpaid tax, the IR21 notice will include those amounts. You must settle this tax before the clearance certificate is issued. To avoid delay, pay any outstanding tax bills before your last day of employment. You can check your tax account via the “View Account Summary” tab on the myTax Portal.
File your own annual return for the year employment stopped
Even though your employer files the IR21, you must still file your own annual personal income tax return (Form B1 or Form B) for the year employment stopped. IR21 clearance covers only the tax liability up to the date employment stopped. Any income earned after employment stops — for example, interest, dividends or rental income — must be declared separately. The filing deadline is 15 April of the following year. If you are leaving Singapore permanently, you must file a final return before departure.
Do not assume the employer has filed
You cannot access the IRAS portal directly to check the IR21 status. The employer controls the filing and clearance process. If you have not received your final salary within 6 weeks of your last day, contact the employer’s HR or finance team to confirm the IR21 has been filed. If the employer refuses or delays, you can file a complaint through the IRAS feedback portal. IRAS may compel the employer to file and impose a penalty.
Common delays and how to avoid them
Incomplete or incorrect data in the IR21 form
The most common delay is errors in the IR21 form. Missing or incorrect income data, a wrong date employment stopped, or omitted benefits-in-kind will cause IRAS to reject the form or issue a query. The employer must provide accurate data. As the employee, you can help by providing a complete breakdown of your income for the year, including bonus, commission, share awards and any housing or transport allowances. If the employer asks you for this data, respond promptly.
The employer misses the 10-day filing window
If the employer files after the 10-day deadline, IRAS may still process the IR21, but clearance will be delayed. The late-filing penalty applies to the employer, not to you. However, the clearance delay means your final salary is withheld for longer. To prevent this, remind the employer to start the process immediately after your last day of employment — ideally before you leave.
Bank or address changes not notified
If you change your bank account or address after employment stops and do not notify IRAS, your refund or final payment may be delayed. IRAS sends correspondence based on the last known contact details the employer provided in the IR21 form. If you are leaving Singapore, make sure you have a reliable forwarding address and update your contact details on the myTax Portal.
Cross-border tax issues overlooked
For EP or S Pass holders from mainland China, if you have undeclared foreign income in Singapore, the IR21 process may trigger an IRAS review of cross-border tax. Under the IRAS Guide on Foreign Income (2024 edition), if you earned dividends, interest or rental income from China, Hong Kong or Taiwan while resident in Singapore, and this income was not declared in Singapore, IRAS may ask for relevant documents during clearance. To avoid delay, organise all your foreign-income filing materials before employment stops.
In closing: 3–5 actionable points
- Before leaving on your last day, proactively confirm with your employer’s HR that the IR21 will be filed within 10 days, and provide a complete breakdown of your income for the year, including bonus and benefits-in-kind.
- Before employment stops, check and settle all unpaid tax from previous years via the myTax Portal, so clearance is not held up.
- Before leaving Singapore, update your contact details and bank account information on the myTax Portal, to ensure refunds and your final salary are received smoothly.
- Even if your employer files the IR21, you must still file your own annual return for the year employment stopped by 15 April of the following year, declaring income earned after employment stopped.
- If you have cross-border income (from mainland China, Hong Kong or Taiwan), prepare the relevant documents in advance in case IRAS asks for them during clearance.