Tax clearance when resign for EP holder

Mr_Mister · 2019-11-16T13:25:48+01:00

Explore the legal aspects of tax clearance for EP holders resigning in Singapore. Get insights on salary withholding and processing times.

Mr_Mister Member

Member since 29 May 2019

Mr_MisterMember16 November 2019 11:25:48

Hi,
I submit the resignation letter on 10 Nov. My last working day is 24 Dec. I working in SG since Jun 2019 and my total earning this year in SG till end of this year would be more than 40k but less than 45k.

The HR say they will hold my last 2 month salaries, which means they will not pay me salary of Nov and Dec until the Tax process is done. Is that legal? and how long the tax process will take?

surya2k VIP Member

Member since 22 June 2014

surya2kVIP Member16 November 2019 16:37:31

2890

As you have worked for few months only (less than 180 days), you will get a flat tax rate. So, one month salary could have been blocked instead of two months. But, it is very much legal and usual practice across employers. Nothing to be worried, they will return your balance salary after paid out the taxes and other pending payments, if any.

beppi Germany/Singapore Expert

Member since 08 August 2010

Germany & Singapore Expert

beppiGermany/Singapore Expert16 November 2019 22:18:26

15503

The company must, by law, withhold the salary until the tax dues are calculated and paid. They have no choice in this matter!
IRAS normally needs only a week or two to calculate it - and any money left will be paid out to you by the company then.