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Withholding Tax

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Singapore has implemented a withholding tax law to make the payments by the non-residents on income generated in Singapore. This tax does not apply to Singapore resident companies or individuals. One has to pay the tax on the Singapore-sourced income.

Types of payment upon tax imposed:

  • The payment of commission fees to overseas agents.
  • The payment of director’s fees to non-resident directors.
  • The payment of professional fees to offshore accountants.

Section 45, 45A, 45B & 45D

  • Interest
  • Royalties
  • Management fees and service fees
  • Rental from use of movable properties;
  • Non-resident director's remuneration;
  • Gains from real property transaction

Section 45E

  • Supplementary Retirement Scheme (SRS) withdrawal made by foreigners and Singapore permanent residents.

Section 45F

  • Professional service fees for non-resident professionals.

The Singapore Withholding Tax Rates depends on the type of payment you are making:

  • For director’s salary, management fees, technical and other service fees, the withholding tax rate is the same as corporate tax rates. The current corporate tax rate is 20%.
  • For time charter fees, voyage charter fees and bareboat charter fees, the withholding tax rate is 1% - 3%.
  • For other types of payments, the withholding tax rate is 10% or 15%.
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