As an employer, you are required to file the Tax Clearance (known as Form IR21) or notify IRAS at least one month before your non-citizen employee ceases or is about to cease employment with you in Singapore. We may take the following enforcement actions if you fail to do so:
- Impose a composition fee; and
- Summon you to attend Court
What should I do when I receive an "Offer of Composition for Failure to File Return"?
You are required to file the Form IR21 AND pay the composition fee within 14 days from the date of the letter. If you have already filed your Form IR21, you are only required to pay the composition fee.
What should I do when I am summoned to attend Court?
A summons is a written notification that prosecution action has commenced against you. You will be required to attend Court on a fixed date. However, if you file the Form IR21 and pay the composition fee to IRAS at least 4 working days before the fixed date, you will not be required to attend Court anymore. IRAS will apply to the Court on your behalf to withdraw the summons.
What if I do not file Form IR21 and pay the composition fee before the Court date?
You will have to attend Court on the fixed date. Once you plead guilty to the offence, you have to pay a fine of up to $1,000 for each summons issued against you.
You are still required to file the Form IR21, even after pleading guilty in Court. Otherwise, you will face further prosecution action from IRAS as long as the Form IR21 is not filed.
What if the Court date has been postponed?
As long as you file the Form IR21 and pay the composition fee at least 4 working days before the postponed date, you will not be required to attend Court anymore. IRAS will apply to the Court on your behalf to withdraw the summons.
How to file the Form IR21
- You may log in to https://myTax.iras.gov.sg and e-File the Form IR21.
- You may download the Form IR21 [ pdf version (187KB)] and fax it to us at 6351 2707 or post it to Inland Revenue Authority of Singapore, 55 Newton Road, Singapore 307987.
Modes of Payment
You may choose to pay the composition fee together with the payment voucher using any of the following payment modes: