Leaving Singapore - CPF and Tax

[kittykat]

I'm seriously looking at moving back to Brisvegas this year. I am trying to understand what I need to do to get my CPF back. I understand I need to get tax clearance first? I looked at the IRAS site and apparently my employer withholds my last month of salary is that right?

Does anyone know the process end to end and who needs to do what? Basically I want to get access to my cpf and make sure I'm all sorted.

[Fresh Mint]

Your employer is obliged to hold your last salary until you get tax clearance, but you can do that while still employed. Once you've done that, it is easy to get your CPF back.

[Fat Bob]

Are you sure you're looking at the right bit? With-holding salary for tax purposes is only for people on EP.

now, the way I would do it would be to
1: Organise leaving in the 1-2 months before you want to go
2: Give up work ~1 week before you want to go
3: Go to ICA and renounce PR. At this point you may get IRAS calling you to clear your tax.
4: Goto CPF and show them your renounced PR status and get the money sent to whichever account you want to.
5: Leave Singapore.

I think the renouncing PR and heading to CPF is quite easy. Just not sure about the taxman.

[kittykat]

Ok. That's an idea FB. I understand you won't get your CPF until you have your tax clearance certificate.

http://iras.gov.sg/irasHome/page03.aspx?id=546

Employees affected
Foreigners (non citizens of Singapore)
Singapore Permanent Residents leaving Singapore permanently.

Or are you saying by renouncing my PR I can get my CPF? I think I'd have to still get Tax Clearance.

[Fuzz]

By renouncing your PR, you will get your CPF -- I formally renounced my PR when I was in Singapore last month; even though the government mentioned that by letting my PR lapse without renewing it means that I had automatically lost my PR status in 2007.

Again, not really sure about clearing tax, as I was last employed in Singapore in 2002, so my tax had looooong been settled. So when I 'renounced' my PR status at ICA in January this year, they gave me a letter to withdraw my CPF. When I went to the CPF office at Robinson Road, I just needed to show the letter, tell them of the date of when I was last employed in Singapore, give them my bank details and that was it. I haven't received the fund yet, but the officer mentioned that the process would take about 4 - 5 weeks to complete.

By withdrawing CPF, I won't be able to work or reside again in SGP (apparently, even as an EP), unless I repay the CPF amount + interest.

[Fat Bob]

Ah, fair call. Yeah, makes sense, Singapore government agencies do talk to each other pretty well.

So, if you want to renounce your PR and get your CPF back immediately, seems you need your tax cleared. Which is fair. So, if you owe more tax than you have in CPF.....

[kittykat]

Got the good oil from the ever-friendly, bubbly and quick-witted call centre agent (sorry Customer Service Rep) at IRAS.

Employer lodges a form (online via website or by snail mail) saying that the employee is leaving and puts in the amount of salary the employee will be paid. You can estimate as the employer and put the form in early. Employee is then sent a letter from IRAS stating the amount of tax they owe. Employee trots into IRAS - writes an obscene cheque and then gets a Tax Clearance letter. Employee trundles up to CPF Board presents letter from IRAS and then CPF funds are transferred to your bank account.

So ideally get your employer to lodge the form asap so you can clear your taxes.

[Fat Bob]

So, you're leaving Singapore and you think the cheque written to IRAS will be obscene? Just wait til you earn in Springfield darlin'!

[sundaymorningstaple]

If you are working then it's not really a problem if you tell you employer you are leaving the country and giving up your PR. Their HR should already know this. They will file an IR21 (Tax Clearance). They have to file 1 month before your final pay and they are required to hold your final pay for 30 days or whenever they receive the notice of Balance of Tax due or Tax Clearance by the government. If there is tax due, once paid then you will receive notice of clearance. They (the employer) will have to pay your income tax and then remit to you the balance of your final salary. If they file manually it can take up to 30 days for clearance. If they file online, clearance is guaranteed within 15 days.

Here is a link to the Employers site at IRAS where you can download a copy of the IR21 for your references.

http://www.iras.gov.sg/irasHome/page03.aspx?id=546

About 1/3d of my staff is now Foreigners so I get lots of practice filing the darn things. (Just saw this thread).