In our increasingly mobile global economy, it is common for directors to relocate. However, if you are a director planning to leave Singapore permanently in 2026, you cannot simply pack your bags and go. Your departure triggers specific legal and tax obligations that, if ignored, can lead to heavy fines for both you and your company.
At Hallmark Corporate Services, we’ve guided numerous professionals through this transition. Here is the essential roadmap for a compliant exit.
1. The Statutory Requirement: The Resident Director Rule
Under the Singapore Companies Act, every company must have at least one director who is “ordinarily resident” in Singapore.
- The Risk: If you are the sole resident director and you leave permanently, your company will be in immediate breach of the Act.
- The Solution: You must appoint a replacement resident director before your departure. This can be a Singapore Citizen, a Permanent Resident, or an Employment Pass holder residing in Singapore.
- Nominee Director Services: If you do not have a local partner to step in, many businesses engage a nominee director service through a corporate service provider like Hallmark to maintain 100% compliance.
2. IRAS Tax Clearance (Form IR21)
This is the most critical step for non-Singapore Citizen directors (including Permanent Residents leaving for good).
- What is it? Tax clearance is the process of ensuring you have settled all your Singapore income tax before you depart.
- The Deadline: Your company must notify IRAS and file Form IR21 at least one month before your departure date.
- Withholding Monies: From the moment the company is aware of your impending departure, it is legally required to withhold all monies due to you (including director fees, bonuses, and salary). These funds can only be released after IRAS issues a Clearance Directive.
- Penalties: If the company fails to file Form IR21 or releases funds prematurely, it may be held liable for your unpaid taxes and face fines of up to S$5,000.
3. ACRA Notification and Residency Status
Your residency status with ACRA must be updated to reflect your new situation.
- Resignation vs. Change of Particulars: If you are staying on as a “Foreign Director,” you must update your residential address in BizFile+ within 14 days of the change. If you are resigning, the company must lodge a “Notification of Cessation” within 14 days.
- The 183-Day Rule: Remember that once you leave, you will likely lose your status as a “Tax Resident” for that Year of Assessment if you spent fewer than 183 days in Singapore, which may result in a higher flat tax rate of 24% on your director fees.
4. Checklist for Departing Directors in 2026
| Action Item | Responsible Party | Deadline |
| Appoint New Resident Director | Board / Shareholders | Before departure |
| File Form IR21 (Tax Clearance) | Company / HR | 1 month before departure |
| Update Address/Status on ACRA | Company Secretary | Within 14 days of change |
| Settle Outstanding Tax Bill | Director | Upon receipt of IRAS notice |
| Cancel Work Pass (if applicable) | Employer | Within 7 days of cessation |
Conclusion: Don’t Leave Compliance to Chance
Leaving Singapore is a major life event, but your corporate legacy shouldn’t be a trail of penalties. In 2026, ACRA and IRAS systems are more integrated than ever; a mismatch in residency status can quickly trigger an audit.At Hallmark Corporate Services, we specialize in nominee director appointments and tax clearance management. We ensure that your company remains in good standing even after you’ve moved on to your next international chapter