Home   Knowledge  Singapore  Singapore Taxation  Profits Tax  Singapore Withholding Tax  

KNOWLEDGE

SHARE

Singapore Withholding Tax

【Font:L M S

Introduction to Singapore Withholding Tax


Withholding tax is a tax on payments made to non-residents including employees, business partners and overseas agents. Here is a quick overview of withholding tax and how it affects your business.


A non-resident is liable to pay income tax on Singapore-sourced income. Under the law, a person has a legal obligation to withhold a percentage of the payment, when he makes payments of a specified nature under the Singapore Income Tax Act, to a non-resident.


When you make payments of a specified nature to a non-resident, you must withhold a certain percentage of that payment as "withholding tax". What Types Of Payments Are Subject To Withholding Tax?


Types of payment include:


  • payment of commission fees to overseas agents
  • payment of director's fees to non-resident directors
  • payment of professional fees to offshore accountants


Section 45, 45A, 45B & 45D


  • Interest
  • Royalties
  • Management fees and service fees
  • Rental from use of movable properties;
  • Non-resident director's remuneration;
  • Gains from real property transaction


Section 45E


  • Supplementary Retirement Scheme (SRS) withdrawal made by foreigners and Singapore permanent residents.


Section 45F


  • Professional service fees for non-resident professionals.


How are the Singapore Withholding Tax Rates?


It depends on the type of payment you are making.


  • For director's salary, management fees, technical and other service fees, the withholding tax rate is the same as corporate tax rates. The current corporate tax rate is 20%.
  • For time charter fees, voyage charter fees and bareboat charter fees, the withholding tax rate is 1% - 3%.
  • For other types of payments, the withholding tax rate is 10% or 15%.


Note: Where a double tax agreement is applicable, the rates specified in the agreements of the respective countries would apply.



Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:

Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ WeChat: +852 5616 4140
Skype: kaizencpa

Language

繁體中文

简体中文

日本語

close