Tax Calculation in case of Switching job in mid year

Any additional tax amount paid by you, IRAS will be credited back at end of the financial year by issue a cheque to you, only if the extra tax paid amount is higher than the financial year tax amount earned at employer B, if it’s lower to year end tax payment or else it will just adjust the balance amount you need to pay. Good luck

Hi Surya2k,

I have a similar situation, I joined company A my first company in Singapore on 10th April 2018 and 17th Aug would be my last day at A, Since the duration is less than 183 days the agency tells me that, I need to pay 15% tax, which is understood. But I am joining company B on Aug 31st, so would I again end up paying 15% tax at B ?
If yes !! then can I file a tax return at the end of financial year, because I have stayed more than 183 days for the CY 2018.

Thanks in advance.
BK

bk2134567: Please refrain from sending your enquiries by PM to me and others, when it can be discussed on the open forum instead (where others can also contribute to and benefit from the replies)!!!
As I have replied to you, your entire time in Singapore will be considered (and tax re-calculated accordingly) after you submit your tax declaration after the end of the calendar year.

Thanks Beppi

Hi @beppi

Will I be able to see any outstanding tax payment via IRAS myTax Portal? The reason why I asked is because I plan to go on a short holiday after my resignation to give myself a break and my current employer will only be sending the IRAS Letter via post which by the time it's posted to me, I'm already overseas. Although I have the IPA Letter, I just don't want to be stopped by immigration officers upon my return due to any outstanding tax payment. (I've searched this forum but couldn't find any relevant thread, apologies in advance if you've addressed this previously).


Thanks!

If you read our previous postings, we had categorically said that the current employer will do the initial tax calc based on your salary, bonuses and other income through the job then send IRAS to confirm. After confirmation they will deduct from your blocked salary (all foreigners (non PRs) salary does block once you put your paper in any company in Singapore). All the process does complete before your last day in the company.

So, your overseas tour won’t affect due to change of your job.

In addition to what Surya wrote above, the only possibility for tax dues to remain unpaid and thus causing problems on your return is if you gave less than the contractually required (typically one month or longer) notice for terminating your previous employment - and thus the employer had no chance to withhold your last month's salary and pay the tax from that.
(There is also a remote possibility that the tax dues are higher than one month salary - but with Singapore's very low tax rates this is possible only for very high earners.)
If this applies to you, you should contact IRAS and pay the dues before you return to Singapore!

Thanks beppi & surya for your advice! I’ll just wait for the final documents to be mailed to me and see how it goes.