Withholding Tax

Learn about how withholding tax is calculated in Singapore...

A non-resident is liable to pay income tax on income earned within Singapore. (For tax purposes an individual is considered a non-resident when working or living Singapore for less than 183 days per year.)

If a person or a Singapore-registered company makes a payment of a specified nature to a non-resident they are required by law to withhold a percentage of that payment and remit it to the Inland Revenue Authority of Singapore (IRAS).

The local payer in Singapore is required to withhold tax at:

  • 15 percent of the gross income/fees payable to the non-resident professionals
    or
  • The non-resident rate if the non-resident professional elects to be taxed on net income

The tax remittance must be made by the 15th of the second month following the date the payment was made. For example, if the payer is liable to make an interest payment to a non-resident person on 5 April, he has to notify the Comptroller of Income Tax and remit the tax withheld to IRAS by 15 June.

The types of payment subject to income tax and the withholding tax rates are:

  • Interest
  • Royalties
  • Management fees and service fees
  • Rental from use of movable properties
  • Payments for the right to use information
  • Non-resident director's remuneration
  • Gains from real property transactions
  • Details on the rates that must be paid on each type of payment

The types of income that a non-resident professional might have which would be subject to withholding tax are:

  • Payment of income derived by a non-resident professional from the exercise of a profession or vocation in Singapore
  • Payment of income made to a non-resident professional who operates through a foreign firm
  • The IRAS website has full notes on Withholding Tax

Further Information

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