The non-resident professional is subject to a final withholding tax of 15% on the gross income/fee derived from services performed in Singapore.

Under the 15% withholding tax treatment:

1. Gross income refers to both cash and non-cash payments and includes:
   1. accommodation provided/reimbursed by payer;
   2. airfare provided/reimbursed by payer;
   3. allowance;
   4. honorarium/speaker's fee;
   5. per diem; and
   6. transport (e.g. airport transfers) and meals provided/reimbursed by payer
2. No deduction is allowed against the gross income/fees for any expenses incurred;
3. We will not send tax bill to the non-resident professional as the payer has accounted for the withholding tax; and
4. The following are not applicable
   1. concession of not taxing accommodation provided for 60 days or less in any calendar year and cost of airfare
   2. tax exemption for short-term employment  of 60 days or less in a calendar year. 

The non-resident professional can opt to be taxed on the net income (i.e. gross fee less allowable expenses) at the non-resident rate of 22% instead of 15% of the gross income.

Under this option:

1. As a concession, the following are not taxable:
   • cost of airfare borne by the payer and
   • cost of accommodation (excluding value of food) provided/reimbursed by the payer for short-term engagement of 60 days or less in a calendar year. Where the period of engagement is more than 60 days in the same calendar year, the cost of the accommodation is taxable. For example, engagement period was 70 days in a calendar year and accommodation was provided. The full cost of accommodation is taxable.
2. Only expenses which are wholly and exclusively incurred by the non-resident professional in the production of the Singapore-sourced income and which are not reimbursed by the payer are tax deductible.
3. As a concession, the following expenses incurred by the non-resident professional are deductible:
   • Cost of airfare and
   • Cost of accommodation (excluding value of food) for short-term engagement(s) with total period of 60 days or less in a calendar year. Where the total periods in one or more period of engagement(s) in the same calendar year exceeds 60 days, the full value of the accommodation is not deductible. For example, if the non-resident professional pays for the accommodation and the engagement period for the same calendar year was 70 days, the full value of the accommodation is not deductible.
4. Private expenses (e.g. value of food and ground transfers from and to airport) and expenses incurred to put the non-resident professional in a position to earn the income (e.g. transport expenses incurred from hotel to venue of service and back) are not deductible.
   
   

We will not send tax bill to the non-resident professional as the payer has accounted for withholding tax.

_{Exercising Option to be Taxed on Net Income at 22%}

This option is irrevocable and must be exercised on a per engagement basis. This means that all income and benefits from the same engagement are subject to withholding tax at 22%.

The option must be exercised:

1. during the e-filing of the withholding tax by selecting the tax option to be taxed on net income at prevailing non-resident rate OR
2. by the filing due date if tax at 15% has been remitted to IRAS*

*by 15^th of the second month from the date of payment to the non-resident professional (for date of payment from 28 Nov 2013).