Withholding Tax

Withholding Tax is the amount to be withheld from a payment made to a non-resident professional or company liable to pay income tax on Singapore sourced income.

  • Withholding Tax of a non-resident company is an unincorporated partnership to carry on business for profit of two or more persons whose principal place of business is outside Singapore. This is excluding:
  • foreign clubs and associations
  • foreign universities
  • foreign government and its representatives

Withholding tax rate depends on the nature of income and is between 10% and 15%.

  • Withholding Tax for a non-resident individual is
  • in Singapore for less than 183 days in a calendar year under a contract for service and includes
  • a foreign expert who is either invited by government bodies, statutory boards, or private organisations to impart your technical know-how or expertise in Singapore
  • a foreign speaker/academic conducting seminars or workshops
  • Queen’s Counsels
  • Consultants, trainers, coaches
  • an individual who operates through a foreign firm
  • a non-resident director of a company incorporated in Singapore

Withholding tax rate is 15% on the Gross income/fee.

  • Withholding Tax for a non-resident director

Withholding tax rate is 20% of director’s cash and non-cash remuneration such as salary, bonus, director’s fees, accommodation provided and gains from stock options or other share ownership plans. Excluded are airfares paid to attend meetings in Singapore.

Gains from Employee Share Option (ESOP) and Other Forms of Employee Share Ownership (ESOW) must be reported to IRAS and the non-resident director will be informed by the tax authorities of the amount payable.

Other withholding tax rates:

  • Interest: 15%
  • Royalties from Patents: 10%
  • Branch remittance: Exempt
  • Dividends: Exempt