As per Singapore’s Income Tax Act, an individual has to withhold tax when payment of a specified type has been made to non-residents. Singapore’s withholding tax rate depends on the nature of payment, and ranges from 10% to 17%. For non-resident individuals, the rate is 22%.
These payments may be of the following nature:
- interest, commission, fee in connection with any loan or indebtedness
- royalty or other payments for the use of any movable property
- payments for the use of use scientific, technical, industrial or commercial knowledge or information
- technical assistance and service fee
- payments of management fees
- rent or other payments for the use of any movable property
- payments for the purchase of real property from a non-resident property trader
- 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)
- payments to non-resident directors
- or payments to non-resident public entertainer
Learn more about withholding tax for payments made to non-resident companies, including the nature of payments and the prevailing rates.
We can help you ease the process of filling and make sure you comply with statutory requirements for withholding tax. Our services include the following functions and more:
- Determine whether payments made to non-residents or others are subject to withholding tax
- File withholding tax for non-residents companies
- Determine the amount subject to withholding tax and the applicable withholding tax rates
Benefits of engaging Singapore Tax Accounting services for filing Withholding Tax:
We at Singapore Tax and Accounting Services, have certified tax consultants who can help you deal with the intricacies of withholding tax in Singapore, from computing to filing and other services. This will ensure you stay clear of the 5% penalty and subsequent additional 1% penalty that IRAS might impose on the unpaid tax.
Minimise your Withholding Tax
Our tax experts can also advise you on how to take advantage of various schemes in Singapore to minimise your withholding tax liability.
Get expert advice on how to file withholding tax in Singapore
Engage Singapore Tax Accounting Services for matters pertaining to Withholding Tax in Singapore and ensure you file correctly, take advantage of the various related schemes and remaining compliant with the local laws.