Work Permit Holder Who Leave Job before 183 days have to Pay Tax

According to the Singapore laws, any WP holder that worked over 61 days but quit before the 183rd day into his job will need to pay tax. It will be taxed at 15% or progressive resident rates, whichever gives rise to a higher tax amount. Director’s fees and other income are taxed at the prevailing rate of 20%. It will be raised to 22% from the Year of Assessment 2017.

In Singapore, the number of days of employment includes weekends and public holidays. It counts towards the purpose of determining your tax residency status. For better clarity, check out the table.

And so, off days also count towards your total days of being employed. As long as you served 183 days you can go. A calendar year will only be taken into consideration. It doesn’t matter as long if you leave in January or October, as long as you can gain new employment before the last day of 2017, you are eligible to use a new WP. And you will also be able to submit this to IRAS and get back a refund. Call them at 1800 356 8300 for more info.

Just a reminder that employees who want to end their contract, they are required to write a letter of resignation to their employers. And they would need to state the date of tender. This is what you would call black and white. If both parties agree to abolish the agreement, a written agreement also need to be written. If no, MOM will be the deciding party.

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