Calculate withholding tax

Example 1

A non-resident public entertainer was engaged by a payer to perform in Singapore for 20 days. Besides artiste fees of $5,000, he was also provided with hotel accommodation at $200 a day. The airfare of $1,500 was borne by the public entertainer. Assuming the income is due and payable to the public entertainer on 23 Feb 2010, his tax liability of $350.00 is calculated as follows:

* The withholding tax rate is 10% if the income for the services performed in Singapore is due and payable during the period from 22 Feb 2010 to 31 March 2015 (both dates inclusive).

Example 2

Where the entertainer's tax is borne by the payer (e.g. sponsor/ agent), the amount of tax allowance is a benefit in the hands of the entertainer and is taxable.

A) If the income is due and payable on 23 Feb 2010, the withholding tax of 10% would apply:

B) If  the income is due and payable on 1 Feb 2010, the withholding tax of 15% would apply:

Example 3

A foreign sports personality was invited by a Singapore company to grace the event and participate in a public marathon on 11 Apr 2010. He won the prize money of $50,000. For his appearance, he was paid fees of $10,000. His airfare and cost of 2-day stay at the hotel was borne by the company. The company (payer) is required to withhold tax as follows: