Ceasing your tax residency in Singapore can be a significant step in your personal and financial journey. Whether you're moving abroad for work, family, or other reasons, it's important to understand the legal process involved. This guide will walk you through the crucial steps to ensure that you properly and legally cease your tax residency in Singapore.
Step 1: Determine Your Residency Status
Before you begin the process of ceasing your tax residency, confirm your current residency status. According to the Inland Revenue Authority of Singapore (IRAS), you are considered a tax resident if you have stayed or worked in Singapore for 183 days or more in a calendar year. This step is crucial to understand the requirements you will need to fulfill to cease your residency.
Step 2: Notify the Inland Revenue Authority of Singapore (IRAS)
You must inform IRAS of your intention to cease your tax residency. This can be done by submitting the necessary forms and documentation indicating your departure date and providing reasons for leaving. Ensuring that your communication with IRAS is clear and comprehensive will facilitate a smoother process.
Step 3: Settle Outstanding Taxes
Ensure that all outstanding taxes are settled before you leave Singapore. This includes income tax, property tax, and any other taxes you may owe. You should review your tax records and make any necessary payments to IRAS to avoid any legal complications.
Step 4: File Your Final Tax Return
Submit your final tax return to IRAS. This should include all income earned up to the date of your departure. The final tax return must be accurate and complete to avoid any issues with IRAS. This step is essential to confirm that you have fulfilled all your tax obligations.
Step 5: Obtain Tax Clearance
If you are an employee, you will need to obtain tax clearance from IRAS. Your employer must notify IRAS of your departure and ensure that all taxes are paid. Tax clearance ensures that you have no outstanding tax liabilities before you leave Singapore.
Step 6: Cancel CPF Contributions
If you have been contributing to the Central Provident Fund (CPF), you need to cancel these contributions. This involves informing the CPF Board of your departure and settling any outstanding CPF contributions. Canceling CPF contributions is necessary to finalize your financial obligations in Singapore.
Legal References
- Income Tax Act (Chapter 134)
- Inland Revenue Authority of Singapore (IRAS) Guidelines
- Central Provident Fund (CPF) Act (Chapter 36)
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