CalculatorSG

Tax Clearance Calculator Singapore 2026

Estimate the income tax payable for tax clearance (IR21) when a foreign employee or PR leaves Singapore. Covers salary, bonus, encashed leave, notice pay, and gratuity — with a breakdown of IR21 employer obligations.

Estimated Tax to Clear

S$6,225

5.9% effective · Tax Resident · Progressive resident rates (≥183 days)

Income Breakdown

Employment salary (8 months)S$80,000
BonusS$10,000
Encashed leaveS$5,000
Notice payS$10,000
Total assessable incomeS$105,000
Income tax−S$6,225
Net after taxS$98,775

IR21 Filing — Employer Obligations

File IR21 at least 1 month before the employee's last day of employment.

Withhold all monies due to the employee from the date of filing until IRAS grants clearance.

IRAS will issue a Directive to Pay or Directive to Release funds after computing the tax.

Penalty for late filing: Up to S$1,000 fine or imprisonment under Income Tax Act.

Note: Stock options and restricted share units (RSUs) vesting between grant and cessation date are also taxable at the point of vesting or exercise. These are not included in this estimate — consult IRAS for ESOP/ESOW tax treatment.
Who Needs Tax Clearance (IR21)?

Must file IR21: All employers for foreign employees (EP, S Pass, WP) and PRs who are ceasing Singapore employment, going on an overseas posting for ≥3 months, or leaving Singapore permanently.

Exempt from IR21: Singapore citizens, and short-term employees earning below the tax threshold who have been in Singapore for ≤60 days.

Filing deadline: At least 1 month before the employee's last day. For employees leaving Singapore immediately, file as soon as possible.

Withholding: Employer must withhold all salary, bonuses, and payments from the filing date until IRAS issues clearance — typically 7–10 working days.

Source: IRAS (iras.gov.sg) · File IR21 at mytax.iras.gov.sg

IR21 Tax Clearance Process

1
File IR21 online at mytax.iras.gov.sg at least 1 month before the employee's last day. Include all income components.
2
Withhold all monies due to the employee from the filing date — salary, bonus, encashed leave, notice pay, etc.
3
IRAS reviews and issues a Notice of Assessment and Directive to Pay (release funds) or request for additional information. Typically 7–10 working days.
4
Release balance to employee after deducting any tax assessed. Employee settles any tax shortfall directly with IRAS if amounts are insufficient.

Tax Clearance Reference — Key Deadlines

EventDeadline / Rule
File IR21At least 1 month before last day of employment
Withhold salary/paymentsFrom date IR21 is filed
IRAS clearance issuedTypically 7–10 working days after filing
Late filing penaltyUp to S$1,000 fine under Income Tax Act
Employee leaves before clearanceEmployer remains liable for tax owed

File IR21 at mytax.iras.gov.sg · Source: IRAS (iras.gov.sg) · Updated 2026.

Frequently Asked Questions

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