Income Tax

Hi, just wanna know your take regarding this matter:


So, I left my previous company end of January this year and went back to my home country. I was deducted a certain amount for the income tax and had no issue leaving Singapore then. Now I am back in SG and in the process of waiting for a new pass. But due to the long processing time for the pass application, I would need to go back to my country again and will just come back when my application gets approved. I was thinking that there won't be a problem again, but my previous company sent me an email a few days back telling me that i have an outstanding amount regarding my income tax. The amount they deducted to me last January was paid around March already but the amount that needs to be paid is more than the amount they deducted to my last salary. Meaning they only paid what they deducted me, and I still owe a certain amount to pay for. I'm not sure how income tax is calculated but according to what I read, the company should inform if an employee is no longer with the company, then will they calculate for the tax owed. I'm not sure on what to ask to be honest, but I'm quite confused on the way my previous company handled my tax. I mean is what they did fair/right? I just need some insights before I settle the matter. thanks.

This is the normal procedure. You should contact IRAS and pay the outstanding amount!

i left my previous company mid of Jan 2023 and they have already deducted 1 year of my tax (for year 2023) from my last salary.

@FWsingapore, yeah. thats what I thought. They should have deducted the full amount already but they didnt. And sent me email just recently that I have an outstanding amount owed. What if I left and didnt know there's this issue? Would be embarrassing at the airport. sigh*

The employer can only withhold the last month's salary. If that is not enough to pay the full tax bill, the leaving employee has to cover the rest. No matter whether you agree or disagree: This is the normal procedure!

(And if nothing was withheld, e.g. in case of a no-notice termination, then all dealings with IRAS would be your sole responsibility.)

@beppi, the last month's salary was more than the tax amount and they told me that they will deduct the tax amount from it already.  And so a certain amount was deducted before I left. But I didn't know that there's an outstanding amount to settle personally as all emails was sent to my previous employer. They just sent me an email recently and I was surprised as they never informed me earlier. I wish they forward the email earlier for me to settle the issue immediately. Anyway, I settled it already and just hoping this won't affect my pending pass application for a new job. Thank you for the replies. Appreciated.

@its_me_anne


Your registered mobile number should get an outstanding tax notification and IRAS portal has all the details- what's so confusing here?

@its_me_anne Possibly someone (either your employer or IRAS) made a mistake here. It is then still your responsibility to pay the outstanding amount, but (since you did nothing wrong) this will not have an impact on future pass applications or immigration matters.