Withholding Tax in Singapore

It is an important reminder that you must withhold tax whenever you make payments to non-residents. As non-residents do not have any presence in Singapore, there is no way the local tax authorities can tax their income sourced in or derived from Singapore. Therefore, the responsibility is imposed on us to withhold tax before remitting the net payment to non-residents.

The rate of withholding tax depends on the nature of the expense of the payments made to non-residents. It ranges from 0% to 15%.

The following are the types of expenses that attract withholding tax when you make payments to non-resident companies:

  • Interest, commission, and fees related to loans
  • Royalties or other payments for the use of or the right to use any movable property
  • Payments for the use of or the right to use scientific, technical, industrial, or commercial knowledge or information
  • Management fees
  • Rent or other payments for the use of any movable property
  • Purchase of real property from a non-resident property trader
  • Structured products
  • Distribution of REITs

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