Clearance Directives

Once tax clearance applications are processed, IRAS will issue Clearance Directives to the employer.

Types of Clearance Directives

Upon tax clearance , employers will receive either:

  • Directive to Pay Tax which informs you of the amount of monies to be remitted to IRAS; or
  • Notification to Release Monies which informs you of the amount of monies to be released to your employee.

Directive to Pay Tax

Employers should pay within 10 days from the date of the Directive. A penalty will be imposed on late payments.

The amount payable as stated in the directive is not confined to the tax due in respect of the employment period furnished in the Form IR21. It may include unpaid taxes for prior years. 

Notification to Release Monies

Employers should release the monies withheld to the employee as stated in the Notification to Release Monies.

However, if you have filed an amended/additional IR21, you should not release the monies to the employee until you receive another clearance directive in respect of the amended/additional IR21.

  • I filed both original and amended/additional IR21 for my employee. Thereafter, I received a Directive To Pay Tax for the original IR21. Should I pay first or wait for the second directive?

    You should make payment as per the first Directive to avoid penalty on late payment.
  • My employee decided to withdraw his resignation after I filed the Form IR21. What should I do?

    You can provide us with the following information via email or post at Inland Revenue Authority of Singapore, 55 Newton Road, Singapore 307987:

    1. Your employee's tax reference number; and
    2. The reason for withdrawing the Form IR21.

    You do not need to file an amended IR21.

  • The amount payable as stated in the directive is higher than the money I have withheld from my employee. What should I do?

    Scenario 1: Employer fails to withhold money with no valid reason

    Employers are required to withhold all monies due to employees from the day:

    1. Employees give notification of their intention to leave their job or depart from Singapore; or
    2. Employers decide to terminate an employee's employment.

    If you fail to withhold monies from your employees and did not provide valid reasons in the Form IR21, you may be held liable for the amount of tax which should have been withheld.

    For example, your employee gives one month's notice of his intention to cease employment on 15 Jan 2016. The amount of monies due to him is $600, which comprises his salary from Jan 2016 ($450) and Feb 2016 ($150). The full amount should be withheld for the purpose of tax clearance.

    However, you decided to pay him $450 and withheld only $150. Assuming that your employee's tax liability is $500, you would then be liable for the amount payable of $500 as stated in the directive, since you should have withheld $600, which would have been sufficient.

    Scenario 2: You Have Reasons to Justify Not Withholding All Monies Due to Your Employee

    Please email us at with the following information for our review:

    1. Tax reference number of employee;
    2. Date of resignation/ termination notice;
    3. Amount of last salary paid, period applicable and date of payment; and
    4. Reasons for not withholding all monies for the purpose of tax clearance.

    Not withstanding any objection, the amount on the directive needs to be paid to IRAS within 10 days from the date of the Clearance Directive.



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