1. Claiming of tax relief/exemption under the Avoidance of Double Taxation Agreement (DTA) using Form IR37
If you are applying the tax rates specified in the Double Taxation Agreement (DTA) of the respective countries, you are required to check on the "Double Taxation Relief" (DTR) box on the Form IR37 and submit the original Certificate of Residence (189KB) (certified by the foreign tax authority of the non - resident) from non - residents to IRAS by the due date, which is:
- 31 Mar of the following year if the claim is for the current period.
- Within three months from the date of submission of Form IR37 if the claim is for preceding year (s).
Kindly ensure that the Certificate of Residence issued by the foreign tax authority:
- Is in English
- Bears the stamp of the foreign tax authority
- Clearly states that the non-resident is a resident of the foreign country for tax purposes and the year in which the Certificate of Residence is applicable; and
- Clearly states the calendar year in which the services were provided (i.e. the period of payment).
You may receive a Demand Note to pay the balance of the withholding tax and the late payment penalties if the Certificate of Residence is not received by the due date.
2. Claiming tax - exemption under the Avoidance of Double Taxation Agreement (DTA) using Form IR37C
You can use our newly designed tax treaty calculator (QuickLinks > Tax Calculators > Individual Income Tax > Tax Treaty Calculator for non-resident professionals) to check if a non-resident professional is eligible for tax treaty exemption. It will give you certainty as to whether a payer needs to comply with withholding tax obligation.
Under the new procedures for claiming tax treaty exemption, a non-resident professional must note the following:
Where tax treaty exemption applies
Where the "Result" in the calculator shows that the tax treaty exemption applies, the non-resident professional should proceed to complete IR586 online. The IR586 printout is to be given to the payer to submit together with the Form IR37C to IRAS by the due date. Payment of withholding tax is not required at this juncture.
Where tax treaty exemption does not apply
Where the "Result" in the calculator shows that the tax treaty exemption does not apply, the payer should submit the Form IR37C to IRAS with the withholding tax by the due date. There will be penalties if the withholding tax is not paid by the due date.