A person has to withhold tax when they make payment of a specified nature to non-resident companies.
The withholding tax rate in Singapore is dependent on the payment type. This includes the following:
- Interest, commission, fee or other payment connected to any loan or indebtedness; rate is 15%;
- Royalty or other payments for the use of any movable property; rate is 10%;
- Payments for the use of or the right to use scientific, technical, industrial or commercial knowledge or information; rate is 10%;
- Payments of management fees technical assistance and service fees; prevailing corporate tax rate i.e. 17%;
- Rent or other payments for the use of any movable property; rate is 15%;
- Payments for the purchase of real property from a non-resident property trader; rate is 15%;
- Structured products (other than payments which qualify for tax exemption under section 13(1)(zj) of the Income Tax Act);
- Distribution of real estate investment trust (REIT).
Learn everything you need to know about withholding tax by using our corporate taxation services.
Understand when to withhold tax in Singapore
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