Is there a Tax Levy Waiver for your maid of overseas leave ?
As an employer, if your maid needs to go back home to visit her family or for some other reason, and you don't know about the tax levy waiver, I'm glad you're reading this article. I'll tell you what you needs to do before your maid goes on leave. Under what circumstances can maid leave apply for tax levy waiver, what are the application materials, and how to apply for the tax levy waiver?
Before your helper goes for her overseas leave, you need to:
- Ensure that your helper has a valid passport.
- Check ahead with her embassy on her home country’s immigration requirements.
- Make sure she brings along her Work Permit card and passport when she leaves. She will need these documents to re-enter Singapore.
- Keep a copy of her travel ticket or departure itinerary.
- If your helper is away for an extended period of time, you can choose to cancel her Work Permit. If you cancel her permit, you will need to apply for a new Work Permit to employ her again.
Under what circumstances can maid leave apply for tax levy waiver？
You can apply for a levy waiver only if your helper:
- Is on hospitalisation leave issued by Singapore hospitals. (Capped at 60 calendar days per calendar year.)
- Does not return to Singapore after overseas leave.
- Is under police custody or is housed at the embassy.
- Passed away.
Only in at least one of these cases can an employer claim a tax levy waiver.
Note：You will continue to pay levy when your helper is on overseas leave.You can apply for a levy waiver when she returns to Singapore.
If necessary, you can postpone her medical examination for 6 months.
What documents you need when applying
1、Went on overseas leave：
No documents needed. MOM will contact you if they need any supporting docs.
If the helper chose not to return from overseas leave, you should cancel the work permit before you apply for a waiver.
2、Was admitted to a hospital in Singapore ：
Any of the following:
- Medical certificate showing the period of hospitalisation leave.
- Hospital bills which reflect the admission and discharge dates.
A letter from the relevant organisation stating the period of custody.
4、Passed away
A copy of her death certificate. Please prepare the materials according to your condition.
When to apply
You can apply for the levy waiver only after the levy has been charged and it must be within 1 year of the levy bill.
If the waiver period requested is from March 2016 (start month) to April 2016 (end month), you must submit the application by 31 March 2017.
How to calculate the waiver
Amount waived = Monthly levy rate - Levy payable
Scenario
Waiver period: 1 – 15 February
Helper’s levy rate: $300 monthly (or $9.87 daily)
Count the number of days from 16 to 30 February where levy is payable, i.e. 15 days.
Find out the amount of levy payable using daily rate, i.e. 15 days × $9.87 = $148.05
Amount waived = Monthly levy rate - Levy payable
$300 (monthly levy rate) - $148.05 (levy payable) = $151.95 (amount waived)
Application steps：
- Log onto the CPF website using your SingPass.
- After logging in, choose “Application for Waiver of Foreign Worker Levy (Domestic)”.
- You will now be on the Employer Log On screen. Since this is in regards to a domestic worker, you do not need to fill this in. Just click “submit”.
- On the next screen, scroll down and then click on “Application for Waiver of Foreign Worker Levy (Domestic)“.
- Enter the required information – Work Pass, FIN and the reason you are requesting a waiver.
- The reasons, along with the documents needed are clearly stated when you log-in.
- Click on the submit button. Now you are finished!
Please note: Although it states that you do not need to submit documents if your helper was on overseas leave or failed to return, we always suggest add a copy of your helper’s flight itinerary just in case.
After completion of the application, you can check the status of your application online after 12 working days.After a few weeks, you will receive a letter via email letting you know if your request for a waiver has been approved. If it has been approved, the waived amount will be used to offset against your next levy bill. If you no longer need to pay levy, they will refund the amount to your bank account or send you a cheque. You can view the details of your waiver using “Check and Pay Foreign Worker Levy” ,under “Adjustments” .
If you do not get approved, more documents may need to be submitted or you might need to contact MOM. For more information on levy matters, you can visit MOM’s website at www.mom.gov.sg or contact us .
