What an Expatriate Needs to Do Before Leaving Singapore

Leaving Singapore as an expatriate is not a simple matter of booking your departure flight and leaving. There are several legal and administrative obligations that must be addressed beforehand. Preparation for departure can start months before the day you leave Singapore, so having a clear understanding of the different steps needed allows you to navigate this complicated process without any complications. From handling tax clearances to terminating rental and employment agreements, this article will help you in your journey out of Singapore. Below are the essential steps that you should take before leaving Singapore to ensure a smooth transition.

1. Terminate all employment contracts

Before leaving Singapore, you must formally terminate any current employment in the country.

If your employment contract specifies that a notice period is required, serving the notice is mandatory otherwise you may have to pay compensation in lieu of notice. A termination letter is mandatory for formal termination of Employment according to the Ministry of Manpower (“MOM”), either from you or your employer, and it must be in writing. Ensure that such formalities have been completed within the time periods prescribed in your contract, or you will risk still being considered an employee.

2. Tax filing to be done by employer

According to the Inland Revenue Authority of Singapore (IRAS),when most non-Singapore Citizen employees cease employment in Singapore, the employer must notify the IRAS at least a month in advance and withhold all monies due to the employee. This can be done through the filing of the tax clearance form, Form IR 21. You should follow up with your employer to ensure compliance and to avoid tax and salary related complications. It is important to ensure that all taxes owed to IRAS are cleared before you leave Singapore to avoid unnecessary complications.

Take note, that payment in lieu of notice, ex-gratia and gratuity are all chargeable for tax purposes.

3. Negotiate a departure package

If not already specifically agreed in your Employment Agreement, when negotiating your departure package, consider including terms like severance pay, outplacement services, unpaid annual leave or even continuation of benefits. By reviewing your employment contract and understanding industry norms, you will be able to more effectively negotiate the terms of your departure package. Although it is not required by Singapore law for a severance package to be given, most companies do offer one as it reduces risks of employment related claims for the company and helps to promote a positive impression of the company.

4. Terminating tenancy agreement

If you are renting a property in Singapore, it is important to inform your landlord in advance and terminate your lease in accordance with the terms laid out in your tenancy agreement. This usually entails giving enough notice, conducting a final property inspection and ensuring the return of the security deposit. Look out for a diplomatic clause within your tenancy agreement which may allow you to terminate your agreement earlier without any financial penalties.

Additionally, in Singapore’s transient economy, where people frequently relocate, it is common practice for expats to assign their tenancies to others for the remaining duration of a fixed-term contract. This can help you avoid financial liabilities such as penalties for early termination. When exploring this option, ensure the assignment is conducted with your landlord’s consent and in compliance with the terms of your tenancy agreement. The high turnover of residents in Singapore often means there is someone looking for a tenancy, making this a practical solution worth considering.

Finally, documenting the state of the property with photos and videos can streamline the process and help avoid disputes over damages

5. Miscellaneous

Besides the aforementioned points, there are also other considerations to take into account before leaving Singapore for good. If required, you should terminate your internet, cell and other recurring and essential services, close bank accounts and settle any outstanding credit card loans or other financial obligations. It is also important to settle any visa requirements that the country you are moving to has, or other immigration obligations that need to be fulfilled.

Conclusion

Leaving Singapore can require careful planning and adherence to legal obligations. By ensuring compliance with local laws and handling administrative tasks efficiently, expatriates can make their transition out of Singapore as seamless as possible.

Expats who need further guidance on workplace rights or employment contracts can reach out to our legal assistance portal for tailored advice. Let us help you ensure your experience in leaving Singapore is hassle free.