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 2014, his tax liability of $350 is computed as follows:
Artiste fees
$5,000
Hotel accommodation provided (< 60 days)
NIL (Not Taxable - Concession)
Less airfare paid by the 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).
Where the non-resident public 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 non-resident public entertainer and is taxable.
If the income is due and payable on 23 Feb 2014, 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 2014.
He won 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
NIL (Not taxable - Concession)
Airfare provided
$60,000
215KB, DOC
68KB, XLS
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.