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Singapore Withholding Tax

Withholding-Tax

The tax imposed on the non-resident companies and individuals for the remuneration they receive from a Singapore source, as part of their work done or services rendered in Singapore is termed as the Singapore withholding tax. Let us dwell into the intricate details of the withholding tax.

When a Singapore company or individual makes payment(s) like royalty, fee for technical service etc. to a non-resident company or individual, the Singapore Company or individual has to withhold a percentage of that payment and pay it to the Inland Revenue Authority Singapore (IRAS). The amount withheld is known as the withholding tax Singapore. The withholding tax rates vary for different kinds of payments paid to the non-resident companies and individuals.

Withholding Tax Rates Applicable To Non-Resident Companies

A company, which does not come under the Singapore taxation system, is known as non-resident company. The Singapore withholding tax rates applicable to non-resident companies vary depending on the nature of payments made to them from the Singaporean source. Therefore, the following table consisting of different withholding tax rates in Singapore will offer you a brief idea of existing withholding tax rates in Singapore,

Nature of Payment Tax Rate (%)
Shipping or Air charter fees 0-2
Dividends 0
Royalties 10
Interests 15
Moveable property rent 15
Technical service fees 17
Management fees 17
Remuneration to the company director 22

Withholding Tax Rates Applicable To Non-Resident Individuals

Any individual who spends less than 183 days in Singapore is considered as a non-resident professional (NRP). The general withholding tax rate applicable to the payments made to NRPs is a flat 15%. The NRPs providing their services in Singapore are as follows:

  • Counsels of Queen;
  • Public entertainers;
  • Consultants;
  • Trainers;
  • Coaches;
  • Foreign speakers who conduct seminars or workshops in Singapore.
  • Foreign professionals or experts invited by the Singapore government for assistance and guidance.

However, the withholding tax rates on the certain payments made to the NRPs are different. They are:

Nature of Payments Tax Rate (%)
Royalties, Payments to the NRP directors 22
Public entertainers 10 (until March 31, 2020)

At Singapore Taxation, we provide services of assisting and guiding non-resident individuals and companies in the payment of withholding tax to IRAS. Our aim is to make your business related in Singapore easy and convenient.

Please feel free to contact us on +65 6536 0036 or drop in an email at info@taxationservices.com.sg

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