Withholding Tax Calculations for Non-Resident Public Entertainers
Examples of Withholding Tax calculations for fees, airfare and accommodation for non-resident public entertainers.
Example 1: Tax Paid by Non-Resident Public Entertainer
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 2019, 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 2022 (both dates inclusive).
Example 2: Tax Borne by Payer
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 2019, the withholding tax of 10% would apply:
| Artiste fees | $3,500 |
|---|
Add: Tax allowance $3,500 x 10/90 | $388.89 |
|---|
Taxable Gross Income | $3,888.89 |
|---|
Withholding Tax @ 10% | $388.89 |
|---|
Example 3: Other Income received by Non-Resident Public Entertainer
A foreign sports personality was invited by a Singapore company to grace the event and participate in a public marathon on 14 Apr 2019.
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:
| Prize money | $50,000 |
|---|
Appearance fees | $10,000 |
|---|
Hotel accommodation provided (60 days or less in a calendar year)# | NIL (Not taxable - Concession) |
|---|
Airfare provided | NIL (Not taxable - Concession) |
|---|
Taxable Gross Income
| $60,000 |
|---|
| Withholding Tax @ 10%* | $6,000 |
# As his period of engagement was 60 days or less in 2019, the accommodation provided is not taxable.*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 2022 (both dates inclusive).