Singapore Withholding Tax Guide
Singapore withholding tax applies to the payments made to the non-resident individuals and companies by Singapore residents or companies. The payee or the source of the payment withholds a percentage of the payment, which later on, is passed on to the IRAS. The rate of this tax range from 0% – 20%.
The tax levied on payment made to non-resident individuals or companies by Singapore source companies or individuals is called as Singapore withholding tax. The main objective of this write-up is to provide detailed overview of withholding tax Singapore.
Precisely, when a Singapore company or individual makes payment to the non-resident company or individual for services, a percentage of the payment must be withheld and paid to Inland Revenue Authority of Singapore (IRAS). The amount withheld is termed as withholding tax. Singapore withholding tax is applied only to non-resident companies and individuals. In essence, income of tax resident companies and individuals is not subject to withholding tax.
Withholding Tax Rates for Non-Resident Companies:
A non-resident company is the one that is either incorporated in a foreign country or a Singapore incorporated company but is treated as non-resident for Singapore taxation purposes. For instance, a Singapore branch office is a Singapore registered company, but, it is treated as a non-resident taxpayer because the business activities of a branch office is generally managed and operated by the parent company located overseas. The withholding tax rates applied to the non-residents companies depends on the nature of payment made by the Singapore sourced companies or individuals. Please refer the following table to get a clear picture of the withholding tax rates:
|Types of payment||Tax Rate (%)|
|Shipping or Air charter fees||0-2|
|Moveable property rent||15|
|Technical service fees||17|
|Remuneration to the company director||20|
Withholding Tax rates for Non-Resident Professionals:
Any individual who has stayed and worked in Singapore for less than 183 days in a year is deemed to be a non-resident professional (NRP). In general, the withholding tax rate applicable for NRPs is a flat 15%. However, the withholding tax rates are different for certain services as listed below:
|Types of Payment||Tax Rate (%)|
|Royalties, Payments to the NRP directors||0|
|Public entertainers||10 (up to March 31, 2015)|
The NRPs in Singapore referred to the following professionals:
- Foreign speakers or academics conducting seminars or workshops in Singapore
- Queen’s Counsels.
- Foreign professionals, experts and specialists invited by Singapore government bodies, statutory boards or private organizations to provide technical expertise in Singapore.
- Consultants, trainers and coaches.
- Public Entertainers.
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