Withholding Tax Regulations in Singapore

In Singapore, withholding tax applies to certain types of income paid to non-resident individuals and companies. The payer of such income is obligated to withhold a percentage of the payment and give this to the Inland Revenue Authority of Singapore (IRAS). The specific types of income subject to withholding tax include:

  1. Interest, commission, fee in connection with any loan or indebtedness: This is typically taxed at 15%, but may be reduced under a tax treaty.
  2. Royalty or other payments for the use of or the right to use any movable property: These are taxed at 10% for payments made to non-resident individuals and companies.
  3. Management fees: There’s no specified withholding tax rate for this. The amount of tax to withhold will depend on the tax rate applicable to the non-resident’s income.
  4. Rent or other payments for the use of any movable property: These are taxed at 15% for payments made to non-resident individuals and 10% for non-resident companies.
  5. Technical assistance and service fees: If such fees are liable to be taxed, the withholding tax rate is 17%.
  6. Director’s remuneration: Non-resident directors’ remuneration is subject to withholding tax at prevailing rates.
  7. Professional, consultancy and other independent services: If these services are performed in Singapore by a non-resident, withholding tax at a rate of 15% on the gross payment applies. If performed outside Singapore, it’s taxed at a rate of 10% on the gross payment.
  8. Performers’ income: Non-resident public entertainers’ professional income is subject to a withholding tax rate of 15%.

The rates can change under tax treaties that Singapore has with other countries. Also, note that these rates are current as of my knowledge cutoff in September 2021, so for the most recent tax rates and regulations, you should refer to the official IRAS website or consult a tax professional.

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