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. Cost of airfare of $1,500 was borne by the non-resident public entertainer.
Assuming the income is due and payable to the non-resident public entertainer on 23 Feb 2018, his tax liability of $350 is computed as follows:
Artiste fees
$5,000
Hotel accommodation provided (60 days or less in a calendar year)
NIL (Not Taxable - Concession)
Less airfare paid by the non-resident public entertainer
$1,500 (Deductible - Concession)
Taxable Gross Income
$3,500
Withholding Tax @ 10%*
$350
*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 Mar 2020 (both dates inclusive).
If the payer bears the tax for the non-resident public entertainer under contractual terms (i.e. payment to payee is treated as net of tax), the withholding tax would be computed on a re-grossed basis.
If the income is due and payable on 23 Feb 2018, the withholding tax of 10% would apply:
Add: Tax allowance $3,500 x 10/90
$388.89
$3,888.89
Withholding Tax @ 10%
A foreign sports personality was invited by a Singapore company to grace the event and participate in a public marathon on 11 Apr 2018.
He won the marathon and received the prize money of $50,000. For his appearance, he was paid a fee of $10,000. His airfare and cost of two-day stay at the hotel was borne by the company.
The company (payer) is required to withhold tax as follows:
$50,000
Appearance fees
$10,000
Hotel accommodation provided (60 days or less in a calendar year)#
NIL (Not taxable - Concession)
Airfare provided
$60,000
215KB, DOC
42KB, PDF
20KB, PDF
The payer is required to withhold tax at 15% of gross income [or 10% if the income is due and payable to you during the period from 22 Feb 2010 to 31 Mar 2020 (both dates inclusive)] for services performed in Singapore. Please refer to Example 1.