Withholding Tax In Singapore

Withholding tax in Singapore is imposed on items like commissions, loan payments, interests, royalties, movable property rentals and technical fees paid to non-residents. No withholding tax is imposed on the payment of dividends.

Withholding Tax Rate

A withholding tax rate of 15% will be levied on the royalties, rentals from movable property and interest gained by a non-resident in Singapore. Normally, no withholding tax is levied on the fees for services delivered outside Singapore.

Withholding Tax Payers

The withholding tax need to be paid to the Inland Revenue Authority of Singapore (IRAS) and business partners, employees and agents of a foreign country fall within this tax net.

Types of Payments that are subject to Withholding Tax

Any sort of payment, enrolled under S45 of the Income Tax Act in Singapore are subject to Withholding Tax. Some of the major payment types include:

Commission fees payment to agents of a foreign country

Professional fees payment to offshore accountants

Withholding Tax Payments: Limitations

The amount of withholding tax payment depends on the types of payment. The withholding tax rate will be equal to the corporate tax rate for items like management fees and technical fees paid to company having non-resident status.

Withholding Tax Rate in Singapore: Year 2007

Withholding tax on interest, commission and loan payment: 15%

Withholding tax on royalty or payments for movable properties: 10%

Withholding tax on payment for the use of technical info: 10%

Withholding tax on rentals of movable properties:15%

Withholding tax on technical assistance and service fees: 18% for resident individuals and 20% for non-resident individuals.

Withholding tax on management fees: 18% for resident individuals and 20% for non-resident individuals.

Withholding tax on Director’s fees: 20%

Withholding tax on proceeds from sale of real property: 15%