Short answer: when a foreign employee stops working in Singapore, is posted overseas or leaves for more than three months, the employer must file Form IR21 with IRAS at least one month before the last day and hold back all money due to the employee from the moment it knows about the departure. IRAS then taxes the income earned in the year of leaving, at resident rates if you are a tax resident for that year and at the higher of 15% or resident rates if you are not. This exit tax clearance estimator works out which applies to you, the filing date and roughly how much of the held-back money comes back.
Rules and rates checked 3 Oct 2026 against IRAS's tax clearance pages, its tax residency page and its individual income tax rates. Singapore PRs leaving for good go through the same process.
Exit Tax Clearance (IR21) Estimator
Works out whether your employer must file Form IR21, the filing date, your tax residency for the year you leave and the tax IRAS is likely to assess. IRAS rates for income from 2024 onwards, checked 3 Oct 2026.
Key Takeaways
- Your employer files Form IR21 at least one month before your last day. Late or missing filing without a valid reason can mean a fine of up to S$5,000.
- From the date it knows you are leaving, the employer holds back all money due to you: final salary, leave pay, bonuses, allowances and reimbursements.
- IRAS processes an e-filed IR21 within 7 working days (21 days on paper). The employer then pays the tax within 10 days of the Directive to Pay Tax and releases the rest.
- Your residency for the final year decides the rate: resident rates of 0% to 24% after reliefs, or for a non-resident, the higher of 15% flat and resident rates with no reliefs.
- No clearance is needed for citizens, PRs staying in Singapore, or foreigners who worked 60 days or less in the year, subject to IRAS's conditions.
How IR21 Tax Clearance Works
Tax clearance is the employer's job, not yours, but it decides when you get your final pay. IRAS sets out the process in six steps.
| Step | Who | Timing |
|---|---|---|
| Check whether clearance is required | Employer | As soon as the departure is known |
| File Form IR21 on myTax Portal | Employer | At least 1 month before the last day; IRAS generally allows a 10-day grace period |
| Hold back all money due | Employer | From the date it knows you are leaving |
| IRAS processes the IR21 | IRAS | Within 7 working days e-filed, 21 days on paper |
| Clearance directive issued | IRAS | Electronic copy within 3 working days of processing; posted copy in 5 to 7 working days |
| Pay the tax, release the balance | Employer | Within 10 days of the Directive to Pay Tax |
Some details worth knowing. The holding back starts at the resignation, not at the filing: IRAS's own example has an employee resign on 2 March with a last day of 1 June, and the employer must start withholding on 2 March. Gardening leave counts from its start. Your employer may not deduct part of your monthly salary in advance to build up a reserve, because the Employment Act does not allow it. If the money held back is less than the tax, you get a tax bill for the rest on myTax Portal, which you can still reach after leaving with Singpass or a Singpass Foreign user Account.
When Tax Clearance Is Not Required
- Singapore Citizens. Never subject to tax clearance.
- PRs who are not leaving for good. The employer keeps a signed Letter of Undertaking instead. A PR posted overseas still needs clearance unless the posting is six months or less, with the same employer, which keeps paying.
- Foreigners who worked 60 days or less in the calendar year, unless paid as a director, public entertainer or professional.
- Foreigners who earned less than S$21,000 a year and worked 183 days or more in the year, or 183 days across two years, or three continuous years.
- Transfers within Singapore after a merger, takeover or group restructuring, with a notice to IRAS.
The 60-day and S$21,000 exceptions apply only if no other Singapore employer paid you in the year you leave or the year before. In every one of these cases the employer still reports your pay on Form IR8A or through the Auto-Inclusion Scheme by 1 March of the next year. An employer unsure of your history can e-file the IR21 anyway: myTax Portal says straight away if clearance is not needed.
Your Tax Residency in the Year You Leave
Leaving partway through a year often drops you below 183 days, which on its own would make you a non-resident. Two IRAS administrative concessions keep many leavers on resident rates, and the estimator checks both.
| Test | Rule | Result |
|---|---|---|
| 183 days | At least 183 days in Singapore in the calendar year | Resident for that year |
| 2-year concession | Employment straddles two calendar years, and your stay, including days just before and after the job, totals 183 days or more | Resident for both years (employees only, not directors, public entertainers or professionals) |
| 3-year concession | You stay or work in Singapore continuously across 3 consecutive calendar years | Resident for all 3 years, even if the first or third is under 183 days |
| None of the above | Under 183 days in the year | Non-resident: employment income taxed at 15% or resident rates, whichever is higher, with no personal reliefs |
IRAS counts weekends, public holidays, leave taken abroad and business trips as days of employment. A foreigner given a work pass of a year or more is usually treated as resident during the job, but IRAS reviews the status at tax clearance against these rules.
Resident Tax Rates
For income from 2024 onwards (Year of Assessment 2025 onwards), chargeable income is taxed at 0% on the first S$20,000, 2% on the next S$10,000, 3.5% on the next S$10,000, 7% on the next S$40,000, 11.5% on the next S$40,000, then 15%, 18%, 19%, 19.5% and 20% on each S$40,000 after that, 22% on the next S$180,000, 23% on the next S$500,000 and 24% above S$1 million. Earned Income Relief is S$1,000 if you are below 55.
Worked Examples
Three Years on an Employment Pass
Arrived 15 January 2024, last day 30 June 2026, S$60,000 earned in 2026. Only 181 days fall in 2026, but the stay runs across 2024, 2025 and 2026, so the 3-year concession makes 2026 a resident year. Chargeable income after the S$1,000 relief is S$59,000, and the tax is S$550 on the first S$40,000 plus 7% of S$19,000, which is S$1,880. If the employer held back S$8,000, S$6,120 comes back once IRAS clears it. The IR21 is due by 30 May 2026.
A Five-Month Contract
Arrived 1 March 2026, last day 31 July 2026, S$50,000 earned. That is 153 days in one calendar year, so neither concession applies. Resident rates would give S$1,250, but a non-resident pays the higher figure, 15% of S$50,000, which is S$7,500.
A Job Across New Year
Arrived 3 November 2025, last day 7 May 2026, S$40,000 earned in 2026. The stay totals 186 days and straddles two years, so the 2-year concession makes both years resident. Tax on S$39,000 chargeable income is S$200 plus 3.5% of S$9,000, which is S$515.
What Goes Into the IR21
- Income for the year you leave, plus last year's if it was not already sent to IRAS through the Auto-Inclusion Scheme.
- Salary in lieu of notice and gratuities for past service are taxable.
- Unexercised share options and unvested share awards are treated as exercised or vested on the day of clearance, and the gain is taxed then, even if selling restrictions apply.
- Severance that compensates for loss of office may not be taxable; IRAS asks employers to assess each part of a retrenchment package.
Share gains are where estimates most often go wrong, because the deemed gain can be large and is taxed in the final year. Add it to the income box in the estimator if it applies to you.
Frequently Asked Questions About IR21 Tax Clearance
What is IR21 in Singapore?
Form IR21 is the tax clearance form an employer files with IRAS when a non-citizen employee stops working in Singapore, is posted overseas or leaves for more than three months. It reports the employee's income so IRAS can assess the tax before the employee goes.
How early must my employer file IR21?
At least one month before your last day of employment. If that is not possible, for example after an immediate resignation, the employer gives the reason in the form; IRAS generally allows a 10-day grace period.
Can my employer hold back my final salary?
Yes, and it must. From the date it knows you are leaving, it holds back all money due to you until IRAS issues a clearance directive. It may not deduct part of your earlier monthly salary to build up a reserve.
How long does tax clearance take?
IRAS processes an e-filed IR21 within 7 working days and a paper one within 21 days. The employer then pays the tax within 10 days of the Directive to Pay Tax and releases the balance to you.
Will I be taxed as a non-resident in the year I leave?
Only if you spent under 183 days in Singapore that year and neither the 2-year nor the 3-year concession applies. A stay running across three calendar years, or a job straddling two years with 183 days in total, keeps you on resident rates.
Do Singapore PRs need tax clearance?
Yes if they are leaving Singapore permanently or being posted overseas for more than six months. A PR who is not leaving for good signs a Letter of Undertaking and no IR21 is filed.
What if the money held back is not enough to cover the tax?
IRAS sends you a tax bill for the remaining amount, viewable on myTax Portal with Singpass or a Singpass Foreign user Account.
Official Sources and References
- Tax clearance for foreign and SPR employees (IR21) (IRAS)
- Getting tax clearance: a step-by-step guide (IRAS)
- Tax clearance for employees, including when it is not required (IRAS)
- Working out my tax residency (IRAS)
- Individual income tax rates (IRAS)
- Earned Income Relief (IRAS)
Explore Catalyst Immigration’s other services:
- Income Tax for Singapore PRs
- Tax Residency for PRs and Foreigners
- What Happens When an EP Expires
- Switching Jobs on an Employment Pass
- Singpass Eligibility and Registration Checker
Talk to Catalyst Immigration
Leaving a job in Singapore is rarely just about tax: an Employment Pass ends, a new pass may be needed, or a PR has to think about the Re-Entry Permit. Catalyst Immigration advises on work pass transitions and PR matters, so the immigration side of your move is settled alongside the tax clearance.