Requirement to Seek Tax Clearance

Employers are required to seek Tax Clearance by filing the Form IR21 or notifying IRAS at least one month before the non-citizen employee ceases employment in Singapore or plans to leave Singapore for more than three months.

Consequences for Late / Non-Filing of Tax Returns

IRAS may take the following actions if employers fail to file the Form IR21 before the due date:

  1. Offer to compound the offence with a composition amount not exceeding $1,000;
  2. Summon the employer (including the sole-proprietor, partner and director) to Court.

Offer of Composition

It is an offence if the employer fails to file the Form IR21 before the due date. Instead of taking prosecution actions, IRAS may allow the employer to settle the offence through the payment of a composition amount.

The composition amount ranges from $100 to $1000 and the amount is dependent on past filing and payment records. A notice will be sent to inform the employer of the composition amount.

The employer will need to pay the composition amount and file the Form IR21 to settle the tax offence. IRAS may take legal action against the employer if the employer does not accept the offer to compound the offence.

Court Summons

A Summons may be issued to the employer to attend Court on a specified date if IRAS does not receive:

  1. The Form IR21; and/or
  2. Payment of the composition amount before the due date.
One Week Before the Court Date

If the employer does not wish to attend Court, the employer should take the following actions at least one week before the Court date:

  1. File the Form IR21; and
  2. Pay the composition amount
Postponement of Court Hearing

If the employer needs more time to file and/or pay the composition amount, the employer should attend Court on the Court date to appeal for a postponement.

Attending Court

Failure to attend Court will result in further legal actions taken against the employer (for example, a warrant of arrest may be issued).

In Court, the employer will have to take a plea after the charges are read. Upon conviction, the employer may face a fine of up to $1,000.

Further Prosecution

The employers must still file the outstanding documents, failing which, further legal actions may be taken.


Filing Form IR21

Employers may choose to:
  1. E-file the Form IR21 via myTax Portal; or
  2. Download the Form IR21 (547KB) and post the completed form to:
    Inland Revenue Authority of Singapore
    55 Newton Road
    Singapore 307987

    Paying the Composition Amount

    After filing the Form IR21, settle the case by paying the composition amount before the due date.

    Please quote the payment slip number when making the payment for the composition amount using the preferred modes. GIRO is not applicable as a payment mode for payment of the composition amount.

    Appealing against the Composition Amount

    Appeals can be made online via myTax Portal.